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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."

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

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.