Copa Airlines Expands Contract With ST Engineering's Aerospace Arm

(Singapore, August 18, 2009) -- ST Engineering today announced that its aerospace arm, ST Aerospace, has signed a three-year maintenance service agreement (MSA) with Copa Airlines. Commencing immediately and worth an estimated US$18.5m (S$26.8m), the agreement covers the maintenance, repair and overhaul (MRO) of Copa Airlines' existing fleet of 28 Boeing 737 next generation and 15 Embraer E-190 aircraft, as well as an additional 11 E-190 aircraft from Copa-owned Aero Republica.

"We are pleased to renew this agreement. Working with ST Aerospace in Panama has helped Copa Airlines achieve greater efficiency in the maintenance of our aircraft. This translates into savings of time and costs of transfer for our aircraft maintenance, which allows better fleet management for our operations. This agreement enables us to continue developing Panama as a key aerospace maintenance centre in Latin America." ~ Pedro HEILBRON, CEO, Copa Airlines


"Copa Airlines was the launch customer for our facility in Panama three years ago, and this contract extension with Copa Airlines shows that they are happy with the support they have received, and are confident that they can rely on ST Aerospace for the maintenance of their fleet. We look forward to a long and successful relationship with Copa, and thank Copa Airlines for working with PAE to build the success story. Today's event also attests to the strong systems and processes in place within our global network, and the ability of ST Aerospace to leverage our global resources to meet the needs of our customers. We also thank the Panamanian government for the support they have given to us. We remain committed to develop a significant aviation-services capability in Panama, provide employment opportunities for Panamanians and contribute to the nurturing and development of the local workforce." ~ TAY Kok Khiang, President, ST Aerospace

This new agreement is a renewal and expansion of the scope of the existing MSA. The original MSA between Copa Airlines and ST Aerospace was signed in August 2006, and covered the maintenance of Copa Airlines' fleet of 22 Boeing 737 aircraft then. In April this year, ST Aerospace's Panama facility received its E-190 certification.

For Copa Airlines, this agreement represents significant benefits of continued maintenance of its aircraft, which includes major inspections such as C checks, modifications and painting. These works are carried out at ST Aerospace's Panama facility, Panama Aerospace Engineering (PAE), located at the previous airforce base of Howard, Panama City. PAE enables Copa Airlines to have its airplanes supported in close proximity to its hub in Tocumen International Airport. As part of the ST Aerospace's global MRO network, PAE is able to draw on the competencies and resources of the network to ensure Copa Airlines receives good support.

This agreement also reaffirms the commitment of Copa Airlines and ST Aerospace towards the development and improvement of the aviation sector in Panama.

Source : Singapore Technologies Engineering Ltd (SGX: ST Engg)