Aircraft

Three Taiwanese companies are poised to win a NT$48 billion ($1.4 billion) contract to take over the maintenance of four military aircraft types as part of a huge privatisation initiative by the Taipei government.

Industry sources say the Aerospace Industrial Development Corporation (AIDC), Air Asia and Evergreen Aviation Technologies (EGAT) are negotiating a deal with Taipei this week to support its Beech T-34 trainers, Grumman S-2 Tracker surveillance aircraft, Lockheed Martin C-130 transports and MD Helicopters MD500s. An eight-year contract worth NT$6 billion annually is set to be signed later this month, with work to start in November.

Air Asia will be responsible for all airframe maintenance under the deal, using government-owned hangars at Pingtung airbase.

The company – which already maintains Bell UH-1, OH-58 and TH-67 helicopters for the Taiwanese military from its Tainan facility – expects the new business to generate annual revenues of around NT$3 billion and to employ around 150 civilian and military mechanics.

AIDC will be in charge of component repair and overhaul at Taichung airbase, while EVA Air subsidiary EGAT will provide logistics services.

BRENDAN SOBIE/SINGAPORE