JALs' Financial Situation will have Minimal Impact on ST's Aerospace Arm

(Singapore, January 11, 2010) -- ST Engineering today stated that with regards to news surrounding a possible bankruptcy filing by Japan Airlines (JAL), one of ST Aerospace customers, there is no material impact on the financial results of ST Aerospace and the ST Engineering group. The current debt with JAL is less than S$5m.

According to news reports, JAL may likely undergo some form of court-led restructuring similar to a Chapter 11 filing in the US. JAL is seeking government support to keep it flying amidst debts. The state-backed Enterprise Turnaround Initiative Corp., now overseeing JAL's restructuring, will provide an investment of 300b yen (S$4.5b). It is also reported that the Japanese government will issue a statement to countries where JAL has operations to guarantee public support for its national carrier.


"ST Aerospace and JAL have over the years built a close relationship. We wish Japan Airlines the best possible outcome in the days ahead, and will continue to work with the airline as we are confident that JAL will overcome its current difficulties." ~ Tay Kok Khiang, President, ST Aerospace

JAL's relationship with ST Aerospace began in 1991 when it first provided heavy maintenance, Section 41 and pylon modification support for JAL's Boeing 747 Classic. Over the years,
ST Aerospace's support has expanded for JAL's fleet of MD-11, Boeing 747-400, 767 and 777 aircraft. Today, ST Aerospace provides maintenance solutions for JAL beyond airframe checks to include engine component repair and overhaul support.

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