ST Aerospace Expands Component MBH Support with Spring Airlines in US$105m Contract

April 8, 2010
The contract will expand the current support it provides to Spring Airlines’ fleet from 15 Airbus A320 aircraft to an expected fleet of up to 78 aircraft of the same type.

Singapore, 8 April 2010 – ST Aerospace today announced that it has been awarded a contract from Spring Airlines for component Maintenance-By-the-Hour (MBH™) services worth about US$105m (S$148m). The contract will expand the current support it provides to Spring Airlines’ fleet from 15 Airbus A320 aircraft to an expected fleet of up to 78 aircraft of the same type. The new contract will commence in April 2010 and stretch over eight years.

The contract also includes the set up of a new warehouse at Spring Airlines’ base at the Pudong International Airport in Shanghai to enhance the support to Spring Airlines. This is in addition to the existing warehouse at its base at the Hongqiao International Airport. The additional warehouse will provide the fleet with easy access to component consignment services at the Pudong International Airport.

“As we expand our operations, we are pleased to partner with ST Aerospace for its uncompromising attitude to safety and high quality standards. They have supported us since we began operations, and have provided maintenance and customer services that continually surpass our expectations. Our partnership over the last five years has given us the confidence to proceed with growth plans for our fleet and chart new international routes.”

~ WANG Zhenghua, Chairman, Spring Airlines

“We are pleased that Spring Airlines has awarded us this new contract to support its expanded fleet of aircraft. The award by Spring Airlines strongly demonstrates Spring Airlines’ satisfaction with the support we have provided over the last five years. We look forward to continue supporting Spring Airlines on the new contract in tandem with their continued growth. We are committed to the highest standards of performance. As an independent maintenance service provider, our customers’ interests are our priority. We look forward to the success of our customers and continued expansion of our agreements with them. These are the best testaments of our commitment and efforts with customers. We appreciate Chairman Wang’s commitment and support.”

~ TAY Kok Khiang, President, ST Aerospace

Spring Airlines’ relationship with ST Aerospace began in 2005 when it secured the MBH™ programme to provide component services (including component maintenance, repair and overhaul (MRO), pool access and consignment services) to Spring Airlines’ fleet of 15 Airbus A320 then. Since then, ST Aerospace has also provided airframe services (namely C and D checks, seats and slides overhaul and Aircraft-On-Ground (AOG) support) to Spring’s Airbus A320 fleet through its Shanghai facility, and tapped on its aviation logistics facility in Guangzhou to provide import, export, warehousing and logistics services of components to the customer. The expansion of the existing component MBH™ programme is a testament of Spring Airlines’ continued confidence in ST Aerospace’s quality services.

The award of this contract marks another milestone for ST Aerospace MBH™ business and validates the growing popularity of ST Aerospace’s MBH™ support programmes for the Boeing 737 and Airbus A320 family of aircraft. Having clinched a significant engine MBH™ contract last week, ST Aerospace today provides engine and component support for over 650 aircraft on the MBH™ basis for a large number of airlines. It continues to grow its repertoire of services and customer base.

Spring Airlines, based in Shanghai, is one of China’s pioneer low cost carriers. Established in 2005 by Spring Travel, China’s domestic travel agency, Spring Airlines started operations with an initial fleet of three Airbus A320 aircraft. Today, it operates with a current fleet of 17 Airbus A320 out of Shanghai’s Hongqiao and Pudong international airports as well as Sanya’s Fenghuang Airport. Currently serving more than 50 routes within Mainland China including destinations such as Guangzhou, Kunming and Urumqi, Spring Airlines hopes to expand into international routes this year.