Singapore Technologies Aerospace (ST Aero) is always on the look out for expansion opportunities around the globe. One of its main drivers is to find lower-cost platforms, says Tay Kok Khiang, president of ST Aero. “A key consideration is to try and find a place where we can put in our brand name and product to deliver the same quality at a slightly lower cost.”
It is for this reason that ST Aero teamed with China Eastern Airlines to establish a maintenance operation in Shanghai. Although its start-up was delayed because of the SARS outbreak in 2003, the company, named Shanghai Aerospace Technologies (STARCO), began operating earlier this year at Shanghai’s old Hongqiao airport. It does, however, have plans to build a hangar complex at the city’s new Pudong International airport. The joint venture, in which ST Aero has a 49% stake, will be managed by the Singaporean company. For the first year of operation it will exclusively support China Eastern with third-party work being sought after that, says Tay.
ST Aero’s ambitions extend to Turkey, where it has a memorandum of understanding to create a maintenance venture with Turkish Airlines, and to eastern Europe, says Tay. “I hope the study into Turkey will go positively. We could be active there next year.”
Source: Airline Business
