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ST Aerospace wins 7-year contract worth over US$100m with UK carrier Flybe

SINGAPORE Technologies Engineering (ST Engineering) on Tuesday said its aerospace arm Singapore Technologies Aerospace (ST Aerospace) has secured a seven-year contract worth over US$100 million for aircraft component support with British low-cost carrier Flybe.

ST Aerospace will provide comprehensive maintenance-by-the-hour (MBTH) support covering component exchange, repair, overhaul, modification, reliability monitoring and logistics services, for Flybe's growing fleet of Bombardier Dash 8 Q400 aircraft.

"MBTH support" works such that for a fixed rate per hour, the airline selects a range of support services and pays a corresponding flight per hour rate, which is pre-determined.

Said ST Engineering: "In this way, operators are able to keep operating costs low and also minimise fixed asset inventory holdings in terms of spares or maintenance equipment."

This latest contract reportedly follows an existing agreement signed in 2004.

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At present, ST Aerospace provides integrated component support for a fleet of close to 900 aircraft on the MBTH basis, for over 20 aircraft operators in Asia-Pacific, Europe and the Middle East.

On Tuesday, ST Engineering shares slipped one Singapore cent to end trading at S$3.26.

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