Singapore Technologies Aerospace secures new contracts worth S$650m in 2Q2017

Singapore Technologies Aerospace (ST Aerospace) secured new contracts worth about S$650m in the second quarter of 2017 for services ranging from heavy airframe and engine maintenance, component repair and overhaul to freighter conversion.
The heavy airframe maintenance contracts include a long-term agreement, announced in June, that ST Aerospace’s US affiliate company, VT San Antonio Aerospace (VT SAA), secured from Air Canada to service the airline’s flagship 787 Dreamliner fleet. With the first 787 aircraft successfully redelivered after it underwent C1-checks at VT SAA’s facility in San Antonio, US, in May, ST Aerospace became the first MRO service provider in the Americas to perform heavy maintenance on the 787.
Among the other heavy maintenance contracts secured during the quarter were agreements to service CFM56-5B and CFM56-7B engines for a European and Middle Eastern Airline respectively, as well as agreements to service the 747 and 767 aircraft for American airlines. Other long-term contracts won during the quarter included an agreement for a labour Charge-Per-Aircraft-Landing programme to service the wheels and brakes of a low-cost carrier’s Airbus A320 fleet.
ST Aerospace gained momentum in its A330-300 passenger-to-freighter (P2F) conversion programme during the quarter when its joint venture with Airbus, Elbe Flugzeugwerke (EFW), secured additional four firm and 10 optional A330-300P2F conversions from DHL Express. This agreement, also announced in June, follows the launch contract for four similar A330-300P2F conversions that was also awarded by DHL Express in July last year. The first aircraft under the launch contract is currently undergoing conversion at EFW’s Dresden, Germany-based facilities, and is on track to be redelivered by the end of 2017.