Vietnam Airlines Engineering Company (VAECO), a subsidiary of national carrier Vietnam Airlines, has set up a $3.9-million joint venture with the aerospace arm of Singapore Technologies Engineering Ltd (ST Engineering), according to a statement.
The JV – Vietnam Singapore Technologies Engineering Aerospace – marks ST Engineering’s first foray into Vietnam, following a memorandum of understanding in April 2018.
ST Engineering will hold 49 per cent stake in the JV with VAECO owning the rest. The JV will provide component maintenance, repair & overhaul (MRO) solutions and operate in Vietnam.
The JV will leverage Vietnam Airlines’ existing maintenance facilities at Noi Bai International Airport in Hanoi and Tan Son Nhat International Airport in Ho Chi Minh City by investing in new infrastructure for carrying out component MRO work at these facilities.
The new component MRO facilities are expected to begin operations in mid-2019 to cater to Vietnam Airlines’ requirements and the region’s growing demand for aircraft component MRO services, ST Engineering said.
“A presence in Vietnam, which enjoys double-digit growth in the air travel sector, will enable us to better capture that growth with an expanded MRO network in the region,” said Lim Serh Ghee, President, ST Engineering’s aerospace sector.
“Our partnership with Vietnam Airlines, which has existing maintenance facilities in the country, not only enables us to set up capabilities within a very short timeframe but also allows us to start operating with a ready base-load,” he added.
ST Engineering is a global technology, defence and engineering group specialising in the aerospace, electronics, land systems and marine sectors.