Japan Airlines (JAL) has selected Hamilton Sundstrand Corporation to provide a total supply chain maintenance solution for its systems on JAL's fleet of 35 Boeing 787 aircraft. Hamilton Sundstrand is a subsidiary of United Technologies Corp. (NYSE: UTX).
The maintenance support agreement lasts for 10 years with an option to extend for an additional 10 years. The value of the agreement and extension option is projected to be worth approximately $350 million. Under the agreement, Hamilton Sundstrand will provide inventory support services, repair services, logistics, and technical cooperation for the electric power system, air management system, nitrogen generation system, emergency power system, and primary and remote power distribution systems of JAL's 787 fleet. This agreement expands upon Hamilton Sundstrand's existing On Site Support program, which provides spare parts support on a variety of aircraft that comprise the JAL fleet.
Technical cooperation between Hamilton Sundstrand and JAL is designed to drive product performance and maturity. Hamilton Sundstrand will provide asset management for JAL and component repair services at both JAL and Hamilton Sundstrand repair facilities. It will be managed by Hamilton Sundstrand's C.A.R.E. (Comprehensive Accessory Repair and Exchange) teams located in the United States, Singapore and Japan.
"Hamilton Sundstrand is honored to be selected to provide maintenance support for its systems to yet another 787 airline and to build upon its long-standing relationship with JAL," said Matthew Bromberg, Hamilton Sundstrand Customer Service vice president and general manager. "This selection completes an extensive 18-month technical and commercial evaluation by JAL, and illustrates the value proposition offered by our C.A.R.E. program."
Hamilton Sundstrand is the largest systems supplier on the 787 with approximately 1,300 individual parts per aircraft shipset.
"As JAL implements its new support strategy, compelling service programs like this will help JAL minimize maintenance costs and continue its industry leading dispatch reliability," said Nobuhiro Sato, JAL vice president, engineering and maintenance. "We are confident that working directly with an OEM that has significant systems content on the 787 will play a key role in the operational success of this aircraft in JAL's fleet."
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