MAS Sees RM1 Bln Revenue From MRO Business By 2010

[Jessnor Arif 1]

LANGKAWI, Dec 5 (Bernama) -- Malaysia Airlines (MAS) expects to achieve RM1 billion in annual revenue from the maintenance, repair and overhaul (MRO) business by 2010, its senior general manager for engineering and maintenance (MRO), Mohd Roslan Ismail, said Wednesday.For this year, it has targeted RM300 million in revenue from MRO and is already in talks with several potential clients both local and overseas to grow this business, he told reporters after MAS signed memorandums of understanding with three international airlines at the Langkawi International Maritime & Aerospace (LIMA) 2007 exhibition here.One MoU, with Saudi Arabian Airlines, is for the two airlines to support each other in aircraft maintenance, ground handling, components repair & overhaul and training.Another is for MAS to set up a joint venture engineering and maintenance facility in Indonesia with PT Eka Sari Lorena Airlines of the Lorena Transport group of companies.MAS also signed an engineering services contract with Lorena Air to provide MRO services.Under the third MoU, MAS will provide Air Atlanta Icelandic's fleet with long term maintenance,MAS Engineering & Maintenance has advanced heavy maintenance facilities and six fully equipped hangars at Kuala Lumpur International Airport and Sultan Abdul Aziz Shah Airport at Subang.-- BERNAMA

Edited December 19, 2007 by Jessnor Arif

[Raj 0]

Under the third MoU, MAS will provide Air Atlanta Icelandic's fleet with long term maintenance,

 

Very good news for the MRO sector n SUBANG!!!

On the other hand when they mention Air Atlanta Icelandic's fleet, are they referring to the Maskargo 742 that are leased from Air Atlanta or the whole Air Atlanta's fleet?

[Jessnor Arif 1]

Another MRO ties... now with QANTAS..

 

Australia's Qantas in aircraft maintenance tie-up with Malaysia Airlines

 

12.19.07, 2:51 AM ET

 

SYDNEY (Thomson Financial) - Australian flag carrier Qantas Airways announced Wednesday an aircraft maintenance joint venture with Malaysia Airlines subsidiary MAS Aerospace Engineering (MAE).

 

Qantas said the joint venture, scheduled to begin operations in Malaysia next year, will target the Asia-Pacific aircraft maintenance, repair and overhaul market, which is forecast to be worth 15 billion US dollars by 2016.

 

Qantas chief executive Geoff Dixon said the venture built on the investment of 300 million Australian dollars Qantas previously announced for its Australian engineering operations.'It also reflects the Qantas Group's objectives of growing our aviation-related businesses into growth markets in Asia and the Pacific,' he said.

 

Malaysia Airlines chief Idris Jala said the joint venture will provide a world-class facility in the Malaysian capital.

 

'Our priority will be to develop Kuala Lumpur as a maintenance, repair and overhaul hub for the Asia-Pacific region for services,' he said.(1 US dollar = 1.16 Australian dollars)

 

Forbes

Edited December 19, 2007 by Jessnor Arif

[Seth K 3]

Who would expect SZB to see QF first than KUL

[Izanee 0]

QF has already served SZB and KUL in the past. They stopped flying to KUL around 1998

[Keith T 2]

http://www.theaustralian.news.com.au/story...4-23349,00.html

 

Qantas in Malaysian air repair venture

 

Steve Creedy | December 20, 2007

 

QANTAS yesterday moved to expand its Asian presence with an agreement to establish a Malaysia-based engineering joint venture it hopes to build into a $US15billion-a-year business by 2016.

 

The carrier will take a half stake in MAS Aerospace Engineering, a wholly owned subsidiary of Malaysia Airlines, to get a foothold in Southeast Asia's burgeoning maintenance, repair and overhaul (MRO) market.

 

The Kuala Lumpur-based facility has more than 1000 engineers and provides a full range of maintenance services for Boeing 747s, 777s and 737s and Airbus A330s and A320s.

 

Qantas yesterday refused to disclose what it would pay for the stake, but a spokesman described it as "modest".

 

Qantas has identified Asia as major component in its growth strategy and has already moved to gain a foothold there by investing in Singapore-based Jetstar Asia and Vietnam's Pacific Airlines.

 

The latest move launches the airline into another highly competitive market where costs have traditionally been about 20 per cent lower than those at its own facilities. But chief executive Geoff Dixon said he was confident the joint venture would create a world-class, competitive venture.

 

He said Qantas Engineering would have "significant input" into the management, engineering and quality systems of the new company as it started operations in 2008.

 

It would build on the $300 million investment Qantas had previously announced for its Australian engineering operations and complement its business review program.

 

The new venture will also give the airline, which is facing industrial action by the Australian Licensed Aircraft Engineers Association over wage negotiations, additional leverage to pursue its quest for increased productivity and lower costs.

 

The new facility will allow it to consolidate overflow work contracted out to MROs in The Philippines, Hong Kong and Singapore that has been the target of union complaints about offshoring.

 

It also gives Qantas an alternative site for any future maintenance work.

 

A spokesman said the airline had no plans to export work currently done in Australia to Malaysia, but a decision had yet to be made on new planes such as the Airbus A380 and the Boeing 787.

 

Union officials last night reacted cautiously to the venture, saying they had been assured it would not affect existing jobs or moves to bring the maintenance of the new planes to Australia.

 

But the Australian Workers Union called for immediate talks with management to ensure Qantas engineering work remained in Australia.

 

It said the Rudd Government should play a role in ensuring Qantas maintained a skilled workforce in Australia.

 

[S V Choong 4]

Is this going to be in Subang? I guess good news for the KUL spotters......

 

Qantas: "I still call Australia 51% home?"

[Sandeep G 1]

That's bloody excellent news for MAS! So looks like we could be seeing more red tails in KL and even SZB

 

This kind of investment also speaks well for Malaysia's economy and business environment... Perhaps we could see more privatisation of GLC linked companies in this way to improve cost efficiencies, international competitiveness, branding & exposure to the world market in general.

 

Good move, MAS.

[Keith T 2]

Qantas: "I still call Australia 51% home?"

 

Clearly there's a difference between a 'national carrier' and an Australian-based, privately owned carrier that plays up to nationalist sentiments in their marketing and political campaigns.

 

I can certainly understand why they'd do it and obviously as a business they need to run efficiently - just don't expect the Government to be as supportive the next time Cabinet decides on ex-SYD transpacific 5th freedoms.

Edited December 21, 2007 by Keith T

[Izanee 0]

QANTAS ?? MAS??? working together?? what is the world coming to?

 

maybe MH might join OW rather than keep getting snubbed by the lovely Air France bastards.

[Guest Michael]

That is a nice profit, oh I think all flights out of PER now people are using the e-ticket facility at travel agents.

[Branden Ng 0]

Flying Kangoroo is coming to town~