MAE AND INDIA'S SPICEJET SIGN 3-YEAR MAINTENANCE SUPPORT AGREEMENT

KUALA LUMPUR, Jan 18 (Bernama) -- MAS Aerospace Engineering (MAE) sealed a
three-year maintenance support agreement Monday with India's SpiceJet for the
airline's fleet of Boeing 737 New Generation series aircraft.

The first aircraft arrived at MAE's Subang hanger last Friday.

MAE managing director Mohd Roslan Ismail said with SpiceJet coming on board
for maintenance, repair and overhaul (MRO) operations, it also made the low-fare
airline the first airline customer of MAS-GMR Hyderabad Engineering Company Ltd.

The airframe MRO joint venture company was established by MAE and GMR
Hyderabad International Airport Ltd on a 50:50 basis in Hyderabad last year.

Roslan said SpiceJet's current fleet of 19 aircraft and future aircraft
would be sent to MAE for 'C' and heavy checks from 2010 until 2013, adding that
the airline would add 12 B737 New Generation aircraft over the next two years to
build a fleet of 31 aircraft

The 'C' checks are where virtually the entire aircraft goes through a series
of checks, inspections and overhaul work.

"SpiceJet's aircraft will first be serviced in Subang. Once our
joint-venture company in Hyderabad commences operation by the first quarter of
2011, the aircraft wil be serviced on the subcontinent," Roslan told reporters
after the signing ceremony here Monday.

"This will allow SpiceJet to enjoy even more cost savings and reduce the
downtime for each aircraft," he said.

The facility at the Hyderabad airport will provide base maintenance
services, starting with 'C' checks for narrow bodied aircraft like Airbus A 320
and Boeing 737, including the B-737 Classic and B-737 next generation aircraft.

It will have a capacity to service between 60 and 80 aircraft annually.

Asked whether MAE was in talks with other customers for its MAS-GMR
Hyderabad Engineering Company, Roslan said the company was in advanced
discussions with some operators in India.

"We have sent out our marketing team and we are in discussions with some
operators such as Jet Airways and Kingfisher Airlines. It looks good so far and
we hope to get more customers in India and in the region," he said.

SpiceJet's chief executive officer Sanjay Aggarwal said the airline was
looking for a fruitful and long-term partnership after a rigorous process of
identifying the right MRO provider.

"We are confident that MAE's expertise, experience and professional support
will ensure that SpiceJet remains the best airline in the low fare space in the
Indian skies," he said.

SpiceJet, which has a 13 per cent market share, operates 129 flights daily
to 18 cities in India.

Speaking on MAE's acquisition of Transmile Group Bhd's engineering and
maintenance unit, Roslan said MAE was still in discussions on the acquisition as
three parties were involved.

"There's a lot to sort out and we have taken it a little slow. We have a
little too much on the plate at the moment as more focus is on the operations in
Hyderabad and others," he said.

The proposed acquisition involves the purchase of Transmile's base
maintenance and engineering capabilities, including two hangars, equipment and
employment of its skilled manpower at the Subang base.
-- BERNAMA