ST Engineering is in discussions with Vietnam Airlines and other potential airline partners to explore the establishment of an airframe base maintenance joint venture (JV) in Vietnam.
The JV will operate out of Vietnam Airlines’ facilities located at Noi Bai International Airport in Hanoi and Tan Son Nhat International Airport in Ho Chi Minh City.
It will leverage the MRO expertise of ST Engineering and the extensive networks of its airline partners to tap the growing MRO market in the region.
According to industry forecasts, the commercial aircraft in-service fleet and the MRO demand in Asia-Pacific are estimated to increase at a compound annual growth rate of 4.5 per cent and 5.0 per cent respectively, over the next decade.
President & CEO of Vietnam Airlines, Duong Tri Thanh, said: “The establishment of a joint venture will bring more aircraft and added value to Vietnam. Likewise, it will help to improve the technical level of the domestic aircraft maintenance industry as well as the competitiveness of the national airline.
“Together with ST Engineering and other potential airline partners around the world, we believe that this joint venture will stimulate and strengthen the Vietnamese job market and aviation industry.”
President of ST Engineering’s Aerospace sector, Mr Lim Serh Ghee, said: “This is an exciting development for us given that Asia Pacific is a focus market for ST Engineering. Following the setting up of our first component MRO facility in Vietnam in September 2019, this new joint venture will help to expand our offerings to include component and airframe MRO for our customers.”
“Collaboration with trusted customers like Vietnam Airlines will be a strong factor contributing to our success as we will continue to increase our network of facilities to capture opportunities in the region.”