Airasia And ST Aerospace Ink US$80 Million Component Repair Management Agreement

[flee 5]

KUALA LUMPUR, July 12 (Bernama) -- ST Aerospace and AirAsia Bhd have signed a 10-year agreement for component repair management maintenance-by-the-hour (MBH) for the low-cost airline's Airbus A320 aircraft.

 

In a joint announcement Thursday, ST Aerospace and AirAsia Bhd said the agreement is worth approximately US$80 million (US$1 = RM3.19).

 

ST Aerospace is currently supporting AirAsia on an existing MBH programme for 100 A320 aircraft.

 

With this contract, ST Aerospace, will effectively support 175 of AirAsia's A320 aircraft.

 

AirAsia Chief Executive Officer Tan Sri Tony Fernandes said through high aircraft utilisation and paramount importance placed on flight safety and quick turnaround time, the low-cost carrier has managed to achieve high efficiency in operations to keep costs low.

 

"ST Aerospace has been a reliable partner, consistently providing us with high quality and cost effective maintenance, repair and overhaul services," he added in a statement.

 

Media Release: http://www.staero.aero/www/mediacentre_newsarticle.asp?newsid=OTAwMDAwMDIzOQ&yname=MjAxMg&arc=bm8

[Izanee 0]

Good ol' Uncle Tony. so much for the collaboration with MAS!

[flee 5]

Well not much point standing still is there? Both MAS and AirAsia have moved on - not much point dwelling on what might have been.

[Izanee 0]

i'm not dwelling on what 'might have been' as I did not want it to happen. uncle tony must be rueful that he did not manage to get his hands in on the huge pie that is MAS. nice try though, you have to give him that.

[flee 5]

Any good businessman should explore ways to make his business more competitive.

 

That may be why they are now looking at the possibility of using Bombardier CS planes, even though Airbus A320neos are on order. The competitive environment keeps moving and what worked in the past may no longer work in the future. Good businessmen need to recognise this, be nimble and able to adapt to the changing environment to remain competitive. To remain still is really going backwards.