ST Aerospace Clinches S$1 Bn Engine MBH Contract

(Singapore, March 31, 2010) -- ST Engineering today announced that its aerospace arm, ST Aerospace, has been awarded a Maintenance-By-the-Hour (MBH(tm)) contract by Jet Airways (India) Ltd for the support of Jet Airways' CFM56-7B engines that power Jet Airways' and JetLite's fleet of 67 Boeing 737 next generation aircraft. The contract is worth US$750m (S$1.0b) and will commence immediately.

Under the agreement, ST Aerospace's wholly owned subsidiary, ST Aerospace Engines Pte Ltd, will provide comprehensive engines maintenance and engineering support over 10 years for Jet Airways' 143 CFM56-7B engines, which includes the fleet operated by Jet Airways' low cost carrier subsidiary, JetLite Limited. Work for both airlines will involve off-wing, on-wing and on-site support, as well as fleet technical and asset management support. This 10-year agreement will provide a high standard of maintenance quality with improvement in technical reliability and longer on-wing life of the engines.

"We are pleased to award ST Aerospace this engine MBH(tm) contract for our CFM56 engines. Having worked with ST Aerospace over the years, we appreciate the excellent quality of its maintenance support, performance levels and high dependability. We are therefore happy to extend our working relationship with ST Aerospace through this agreement. We are confident that as a leading MRO service provider, ST Aerospace will be a reliable partner as we expand our operations." ~ Nikos KARDASSIS, CEO, Jet Airways

"The award of this contract by Jet Airways and JetLite is a strong attestation of its confidence in our support for Jet Airways' and JetLite's maintenance needs. We are pleased that Jet Airways is happy with the level and quality of services that we have consistently provided, and appreciate the award of this contract that enables us to extend the support we provide to its operations. We are committed to building long term relationships with customers and look forward to delivering more engineering and maintenance services to help Jet Airways achieve its vision." ~ TAY Kok Khiang, President, ST Aerospace

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