Malaysia's new government is considering opening its military aircraft maintenance and upgrade business to new companies, starting with a possible lease deal for 17 ex-Royal New Zealand Air Force Aermacchi MB339CD trainers. Industry sources say Malaysia's Transmile Group is lobbying the government in an attempt to break a monopoly on such contracts held by Airod and its sister companies.
Transmile is understood to have partnered with a new company to offer the secondhand aircraft, which would be upgraded and maintained in partnership with its Grouptech subsidiary. Grouptech's business is limited to maintaining 16 Boeing 737 and 727 freighters operated by Transmile Air Service, but it is looking to expand into the defence sector. It also hopes to bid for a Sukhoi Su-30 maintenance deal to be awarded within the next year.
Airod and its parent National Aerospace Defence Industries are trying to fight off the new rivals, and warn that Malaysia's aerospace industry may not be big enough to support multiple companies. Transmile argues that breaking up Airod's monopoly would save money and improve aircraft reliability.
Malaysia's current fleet of eight MB339ABs could be upgraded to the CD-standard if the lease agreement is approved. However, industry sources say these will be scrapped if the proposed deal, which has been under consideration for over a year, is rejected within the next few months.
BAE Systems is prepared to offer more Hawks if the deal is abandoned, while other manufacturers are preparing to offer training solutions. Airod maintains Malaysia's 22-strong Hawk fleet.
Manufacturers say Malaysia needs at least 12 more advanced trainers to improve its fighter safety record, and that even more could be required once it takes delivery of 18 Su-30s from 2006 and, potentially, some Boeing F/A-18F Super Hornets. Pilatus is pitching its PC-21 design, and hopes to conduct a life-extension programme on Malaysia's 36 PC-7 basic trainers.
BRENDAN SOBIE / SINGAPORE
Source: Flight International
