Andrew Doyle/MUNICH
Netherlands flag carrier KLM and United Technologies (UTC) are discussing a major expansion of their nascent maintenance, repair and overhaul (MRO) alliance, likely to lead to the creation of a joint venture between the Netherlands airline and the US company's Pratt &Whitney unit.
The move appears to signal the failure of long-running talks which KLM had been holding with Boeing and engine manufacturer General Electric. It is understood that the US companies had been discussing the possible acquisition of the Dutch flag carrier's airframe and engine maintenance units, respectively, although the airline declines to comment on this.
In October KLM formed a joint venture with UTC via its Hamilton Sundstrand subsidiary for the repair of pneumatic systems. The pair say they want to broaden this relationship to include aircraft engine overhaul and component repair services, "with the ultimate goal of providing full, nose-to-tail aircraft, component and engine maintenance services".
The venture with P&W, if agreed, would incorporate KLM's GECF6 overhaul business and add a PW4000 capability for third-party customers in Europe, the Middle East and Africa. The companies propose to fund jointly the construction of a 25,000m² (270,000ft²) overhaul facility at Amsterdam Schiphol Airport.
"The objective would be to create a full-service aircraft maintenance network, which may include other parties, to provide global support," says UTC.
KLM Engineering & Maintenance already provides a broad range of airframe overhaul services at its Amsterdam base. Braathens of Norway, 25%-owned by KLM, recently sold its engine overhaul shop to P&W.
Earlier this year Rolls-Royce announced the formation of a major Trent overhaul joint venture in mainland Europe with SAirGroup subsidiary SR Technics. GE has a major presence in Europe following its purchase several years ago of the former British Airways powerplant maintenance facility at Treforest in the UK.
• The Philippines securities and exchange commission has approved Philippine Airlines' plan to sell its MRO division to a joint venture of Lufthansa Technik and MacroAsia, part-owned by the airline's majority shareholder Lucio Tan. The venture will take over repair of the PAL fleet.
Source: Flight International
