ST Aerospace remains primarily an airframe maintenance, repair and overhaul company, but the Singapore-based firm has been steadily diversifying its portfolio over the last few years to include passenger aircraft engines and components support.

Last year, the subsidiary of publicly listed ST Engineering recorded a profit after tax of S$235 million ($162 million) and turnover increased by 6% from the previous year to $1.94 billion. Engines and component support accounted for almost 50% of this, and the company wants to spread the word about its capabilities in this sector.

"Today, airframe MRO is only half of the truth, half of our business," it says. "We have to date some 450 engines under total aviation support and 600 aircraft under component total support. Our business is a balanced mix of broad-based capabilities covering airframes, engines, components and engineering services. Despite the global economic climate, we continue to invest for the long term to diversify our support for more engine and component mix."

In the engines components support business, the company has support capabilities for narrowbody aircraft powerplants such as the CFM56-3, CFM56-7B and CFM56-5B. In February 2008, it opened a facility in Singapore to support the CFM56-5B and the GE110 engine that powers Boeing's F-15 fighter.

A new engine MRO facility in Xiamen, China should be operational by the end of the year, and this will initially provide MRO services and support for the CCFM56-5B and CFM56-7B engines.

The latter came after Xiamen Airlines signed a 15-year maintenance-by-the-hour contract with the company to support its fleet of Boeing 737-700s. ST Aero believes that the CFM56 series of engines would account for 64% of all installed engines by 2015 as its used by the newer Airbus A320 and 737, and this should lead to growing demand for MRO services as the powerplant matures.

"Our recent investments are because we need more capacity to meet increased demand for engine MRO services," says the company.

It is also working with OEMs to provide more support for its customers. In July 2008 it signed an agreement with GE and CFM International to co-operate on engine MRO, engine material services, aircraft support and engine parts and accessories repairs. Recently, it signed a 20-year deal with GE to support the GEnx-1B and GEnx-2B engines, offering "customers of both companies access to original OEM parts and high quality MRO service expertise".

In the components business, ST Aero already has a long-term relationship with Thai Airways and China Southern Airlines. It says that it is developing repair capabilities for newer aircraft types, and offering maintenance-by-the-hour and sale-and-leaseback services for all its customers. A combination of acquisitions and organic growth has helped it in this area in recent years.

In December 2005, the company bought SAS Component - now renamed ST Aerospace Solutions (Europe) - that worked on aircraft such as the Airbus A320, A330/A340, Boeing MD-80, 737 and 767, Bombardier Q400 and Fokker 50. Guangzhou Aerospace Technologies and Engineering in China and STA Systems and STA Supplies in Singapore are two other key links in its global chain of components support business.

It has also established a landing gear MRO Madrid Aerospace Services through a joint venture with Iberia Maintenance. This company began operations in September 2008 and delivered its first A320 landing gear in April 2008. It plans to invest in further capabilities in A330 and A340 aircraft.

"Together, these form an integral part of ST Aerospace's global network of facilities that provides comprehensive component support solutions to customers worldwide," says the company.

Airframe MRO, however, remains at the forefront of its business. The company says that it is the world's largest independent MRO firm and has performed light and heavy maintenance, upgrades and conversions for more than 3,500 commercial aircraft globally since 1990. It has over 310,000m2 (3 million ft2) of total space in its facilities globally that can accommodate 25 widebody and 43 narrowbody aircraft.

It is certificated for a wide range of aircraft manufactured in the Airbus, Boeing, McDonnell Douglas, Lockheed Martin, Cessna and Embraer fleets. It also provides 757-200 passenger-to-freighter (PTF) conversion, and works with Eurocopter and China's Catic on the development of the Eurocopter EC120 light helicopter.

The company's origins are in the military business, and it is one of the leading providers of Northrop F-5 upgrade programmes. It is also an authorised maintenance centre for the F-5, Douglas A-4, Lockheed Martin C-130, Fokker 50 and Bell and Super Puma helicopters.

It has also developed a range of mini tactical unmanned air vehicles for military, law enforcement and civil use, and a training division that provides international airline pilot training and multi-crew pilot licence programmes.

"We believe that with a global network, a broad yet integrated spectrum of capabilities and a strong customer base, it should help us perform better than others in the market and be ready when the market eventually recovers," says the company.

Source: Flight Daily News

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