Jeju Air selects ST Aerospace for component support for its fleet

ST Aerospace announced that it signed a component Maintenance-By-the-Hour (MBH™) support agreement with Jeju Air. The agreement worth US$45m (S$65m) will commence in August this year. Under the agreement, ST Aerospace will provide component maintenance works on an MBH™ basis, asset lease and access to ST Aerospace’s worldwide inventory pool to support Jeju Air’s fleet of Boeing 737 next generation aircraft over 10 years.

 

Within the last month, ST Aerospace has added Shanghai Airlines, Cimber Sterling A/S and Primera Air as its customers for its component MBH™ programme.  These, including this latest agreement with Jeju Air, attest to the growing popularity of ST Aerospace’s components and engines MBH™ support programmes for the Boeing 737 and Airbus A320 family of aircraft.  The MBH™ solution was initially tailored for start-up airlines and low cost carriers but it has also achieved initial successes with some traditional airlines.

“As Jeju Air prepares to embark on our growth through acquisition of additional aircraft and reaching more international destinations, we need a reliable partner to ensure the efficient support of our fleet.  We chose ST Aerospace because of its MRO network and emphasis on safety and quality.  We are pleased to collaborate with ST Aerospace, a like-minded partner in quality, in the support of our fleet.”
                                                                                                                                                                     ~ KO Young-Sup, President, Jeju Air

“We are pleased to be selected by Jeju Air, another new customer to ST Aerospace, to support their growing fleet through a component MBH™ programme.  We are confident that our commitment in providing high quality services and responsiveness to our customers’ needs will enable Jeju Air to enhance the efficiency of support to their fleet.  ST Aerospace has a full repertoire of capabilities to support operators of the 737 next generation aircraft and supports many airlines through our components and CFM56-7B engines MBH™ programmes.  We look forward to leveraging the total resources of the Aerospace group to support the growth of Jeju Air as it grows in the years ahead.”
                                                                                                                                                          ~ TAY Kok Khiang, President, ST Aerospace

Jeju Air, established in January 2005, is an airline based at Jeju International Airport, South Korea.  Owned by the Jeju Provincial Government and Aekyung Group, one of South Korea’s largest family-owned conglomerates that operate across various industries including retail, pharmaceutical and petrochemical, Jeju Air currently operates four Bombardier Q-400 Dash 8 and three Boeing 737-800 aircraft.  It expects to grow its fleet of Boeing 737 next generation aircraft over time.  Apart from domestic flights within South Korea, Jeju Air is the country’s first low cost carrier that is given rights to fly internationally, namely to Kitayushu and Osaka in Japan.

This agreement is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.


(c) Centre for Asia Pacific Aviation. Date posted: 15-Jun-09