ST Engineering wins new orders for aircraft conversion

ST Engineering said on Monday that it has secured two new orders for the A321 passenger-to-freighter (P2F) aircraft conversion from US-based aircraft leasing company BBAM.

The A321P2F programme is a joint solution offered by ST Engineering, Airbus and their joint venture Elbe Flugzeugwerke (EFW), to convert passenger aircraft into freighters. ST Engineering is responsible for the engineering development phase.

BBAM signed a general terms agreement in December 2019 for several A321P2F conversions.

The first unit for BBAM was inducted in January this year for conversion at ST Engineering's facility in Singapore, while the second unit's conversion will start in March.

In addition, Keystone Holdings, an ST Engineering aircraft-leasing joint venture, has signed a letter of intent with Australia's flag carrier Qantas Airways to convert and lease an aircraft under the A321P2F programme. This aircraft is currently on lease for passenger service to Qantas Group. After conversion at ST Engineering's facility in Singapore, it is slated for delivery in end 2021.

Other milestones announced on Monday for the conversion programme include a successful first test flight conducted last month for the prototype unit.

The prototype unit had been converted at ST Engineering's Singapore facility. It will be redelivered to launch customer Vallair, a Luxembourg-based company that provides support for mature aircraft, engines and major components.

After the completion of more flight tests, the next milestone for the A321P2F programme will be to obtain the supplemental type certificate from the European Union Aviation Safety Agency. This is estimated to be issued by the end of Q1 2020, ST Engineering said.

Lim Serh Ghee, president of ST Engineering's aerospace sector, said: "After our A321P2F unit receives certification and starts operating, we expect our programme to gain greater traction, joining our pool of Airbus P2F platforms to provide the global air cargo market with cost and fuel-efficient freighter options."

In another media statement on Monday, ST Engineering announced that its aerospace arm has secured a three-year airframe heavy maintenance contract from a major North American airline.

ST Engineering will provide heavy maintenance support for the North American airline's fleet of Airbus A320 family aircraft at ST Engineering's facility in San Antonio, Texas.

The first aircraft under this three-year contract has been inducted and redelivered in January this year.

Separately, in a third media statement, ST Engineering also said it will collaborate with Norway-based maritime industry group Wilhelmsen Ships Service (WSS), to develop and test solutions for unmanned aircraft systems operations for shore-to-ship parcel deliveries in Singapore. The solutions will enable drones to be operated beyond the pilot's visual line of sight.

As part of the tie-up with WSS, ST Engineering will provide a suite of flight tests and technology development services for system integration and solution prototyping.

Shares of ST Engineering were trading at S$4.16 as at 1.36pm on Monday, up S$0.05 or 1.2 per cent.