MAS' MRO BUSINESS TAKES TO NEW HEIGHTS

By Shanti Ayadurai

KUALA LUMPUR, Jan 25 (Bernama) -– MAS Aerospace Engineering's (MAE) global
aircraft maintenance, repair and overhaul (MRO) business, which shot up 30 per
cent from RM325 million in 2007 to RM422 million (US$1=RM3.39) in 2008, is
expected to retain its sharp performance rise in coming years.

Revenue for 2009 and 2010 is expected to be in the region of RM385 million,
currently among the world's top 10 aircraft MRO service providers.

Last week, together with its partner, GMR Hyderabad International Airport
Ltd (GHIAL), it sealed two landmark deals with Indian airline companies -- Spice
Jet and Jet Airways (India) Ltd.

The deals were signed through their joint-venture company, MAS-GMR Aerospace
Engineering Company Ltd (MAG).

MAE’s 37 years of experience in the field, quality service and
cost-effective
deliveries were cited as the deal-clinching factors in both contracts.

”It was MAE's 37 years of experience in the MRO field that basically
clinched
the Spice Jet deal for MAG,” said Ravindran Devagunam, GMR's Chief Executive
Officer (Aviation & Aerospace Business) at a briefing on MAG in Chennai for
Malaysian journalists.

"It was not easy as there was strong competition from several companies
bidding for Spice Jet’s deal in India, but MAE's experience and quality service
delivered to clients over the years ultimately sealed the deal, he said.

Under the contract, MAG will provide maintenance support for Spice Jet's
fleet of Boeing 737 New Generaton series aircraft.

Jet Airways' Executive Director Saroj K. Datta also cited MAE’s experience
and effective services along with the upcoming of MAG's MRO facility in
Hyderabad as the winning factors for the 10-year MRO deal between his company
and MAG.

"Our relationship with Malaysia Airlines goes a long way from the time we
first leased MAS aircraft in 1994. We are happy and satisfied with MAS services.

"Having a MRO facility in India is also expected to cut Jet Airways MRO
expenditure by US$80 million to US$100 million over a 10-year period," said
Datta after the signing of the memorandum of understanding between MAG and
Jet Airways in Chennai on Friday.

But MAE has no plans to rest on its laurels. It is pushing ahead for
expansion both in its new market, India, through MAG, and in other markets to
strengthen its position in the global MRO and fleet management business.

The company is talking to several parties in Russia to get their aircraft
to fly into Malaysia for MRO, said MAE Managing Director Mohd Roslan Ismail.

The growth of its fleet management business, with the service going beyond
the regular MRO, allowing MAE to plan and implement the full aircraft servicing
and maintenance schedule for clients, has especially seen an exponential growth
in clients and business revenue, particularly in the last two years, he said.

"We can’t just go on building hangars,” he said. Currently, MAE’s
utilisation rate of its hangars is about 80 per cent.

"For this reason, MAE has intensified its integrated fleet technical
management (i-FTM) business which essentially manages the logistics and
maintenance of the fleet for other carriers.

"The i-FTM business will be a key focus area for MAE going forward," he
said.

With the increasing number of clients including airline companies flying in
from as far as the United States to service their aircraft with MAE, the wholly-
owned subsidiary of Malaysia Airlines (MAS), which began its operations as the
engineering division of MAS, has expanded both its MRO facilities and capacities
in recent years via steady relationships with international partners.

Its hangars in Subang and the KL International Airport in Sepang currently
provide 28 aircraft bays including 10 bays for wide-body aircraft.

An award-winning MRO provider, MAE's partners here include GE Engine
Services Malaysia, Honeywell Aerospace Services, Hamilton Sundstrand Customer
Support and Pan Asia Pacific Aviation Services.

Its partnership with GMR and the setting up of MAG's first-phase US$65
million MRO facility in Hyderabad, India, will be its first facility outside
Malaysia.

A full spectrum of commercial aviation services are to be featured at the
facility in India's Andhra Pradesh state.

With its operations expected to take off in early 2011, the facility, which
will have the capacity to service an estimated 60 to 80 aircraft annually, is
expected to also house an aviation training centre and supply chain centre,
among others.

It will provide base maintenance services for narrow-bodied aircraft like
Airbus A320 and Boeing 737 next generation aircraft and subsequently wide-body
aircraft like A330 and Boeing 777.

For Indian airlines, the facility will offer substantial savings in aircraft
maintenance as it is costly for them to send their aircraft abroad for
maintenance, Ravindran added.

-- BERNAMA