ST Engineering aerospace segment lands S$450 million contracts in 4Q18

Airbus A321. Source: AirbusAirbus A321. Source: Airbus

ST Engineering said on Tuesday that its aerospace arm obtained new contracts valued at around S$450 million in the fourth quarter of 2018, bringing its full-year total to around S$2.06 billion.

The contracts were for services including maintenance and modification for wide-ranging aircraft parts from the airframe to components, it said in a filing to SGX after the market close on Tuesday.

ST Engineering said a number of the contracts in the fourth quarter were for airframe heavy maintenance checks for both commercial aircraft and private jets.

That included a contract from a major North American airline for heavy maintenance services for the Airbus A321 for the first time, it said, adding the same airline also awarded ST Engineering a contract for an in-seat power supply, overhead bin and galley modification program all 48 of their Airbus A320s.

ST Engineering did not name the airline, but media reports indicate that American Airlines’ fleet includes 48 A320s.

The company also pointed to multi-year contract wins as a sign that it has the confidence of repeat customers.

In the fourth quarter, it obtained multi-year contracts including a five-year component maintenance-by-the-hour contract extension to support an Asian airline’s entire fleet of Boeing B737NG/MAX aircraft, the filing said.

Additionally, in the fourth quarter, the aerospace division redelivered a total of 213 aircraft for airframe heavy maintenance and modification work, and a total of 11,212 components, 50 landing gears and 41 engines were processed, while 2,515 engine washes were carried out, the filing said.

The aerospace segment also expanded its airframe maintenance portfolio when its Guangzhou, China, facility obtained approval form the Civil Aviation Authority of Malaysia for base maintenance of the Airbus A320neo platform, ST Engineering said.


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