Ian Sheppard/London
Despite its current economic troubles, Asia looks set to continue to attract the attention of airframe and engine maintenance providers anxious to cash in on a region that will continue to be a pace setter in the dash for global air transport growth over the next few years.
Much of the action so far has taken place in China, but engine manufacturers such as General Electric and Rolls-Royce have also been active in such countries as Malaysia and Singapore. They are creating joint venture maintenance operations to support their sales of big turbofans in the region, as well as fuelling their aspirations to increase substantially the revenues from this sector of the business.
Not all of Asia is benefiting. Japanese airlines, beset by high costs, are shifting some maintenance to China and Singapore. Recent figures have shown that Japanese carriers spend up to 30% above the world average - of around 0.13% per available seat kilometre - on maintenance, a figure which is around 40% higher than the Asia-Pacific regional average.
Singapore, meanwhile, continues to expand its horizons beyond Asia, with ST Aviation Services (SASCO) opting to acquire another maintenance operation in the USA. Lower labour costs, a lack of available capacity at its existing site in the USA and continuing heavy demand for narrowbody maintenance have resulted in the acquisition of Dalfort Aviation in Dallas to add to its existing operation at ST Mobile Aerospace Engineering in Alabama.
Sister company ST Aviation Resources has almost given up trying to generate narrowbody work in Singapore by offering aircraft leasing packages tied in with SASCO, maintenance package. A new concept offered by a new entrant to the leasing game has proved too restrictive for potential customers.
In the Middle East, the most noteworthy development has been the return of Lebanon's Middle East Airlines to the maintenance business in a joint venture with Aerospatiale subsidiary Sogerma. This is expected to result ultimately in it competing against Abu Dhabi-based Gulf Aircraft Maintenance in the region.
Among other nations covered by the directory, India has air transport growth rate forecasts almost unmatched in the region. Political instability and lack of a consistent civil aviation policy limit potential, however. Hindustan Aeronautics has long talked about pointing its technical capabilities and low labour costs in the direction of the maintenance business. The talk has not been followed by action, however.
Source: Flight International
