ST Aerospace and India's Jet Airways have signed a $750 million maintenance-by-hour contract to support the carrier's CFM56-7B engines.
Under the deal, ST Aero will provide comprehensive engine maintenance and engineering support over 10 years for Jet Airways' 143 CFM56-7B engines, which includes engines on aircraft used by Jet's subsidiary JetLite.
Work for both airlines will involve off-wing, on-wing and on-site support, as well as fleet technical and asset management support, says ST Aero.
The contract is a significant milestone in ST Aero's plans to expand its global reach in the engines support business, says the company, adding that this is one of the largest contracts it has signed. Jet Airways operates 53 Boeing 737-700/800/900s and Jetlite operates 16 737s.
The Singapore-based maintenance, repair and overhaul (MRO) firm's primary business is in airframe and component support and aircraft conversion, although it has in recent years expanded its footprint in the engine support sector.
The company has been providing MRO services to Jet since 1993, starting with component support and extending that to airframe support and then to engines in 2007 when the carrier needed work done on its first two CFM56-7B engines.
"Having worked with ST Aerospace over the years, we appreciate the excellent quality of its maintenance support, performance levels, and high dependability," says Jet CEO Nikos Kardassis.
ST Aero's president Tay Kok Khiang says that the contract is a "strong attestation" of its confidence in the support for Jet.
"We are pleased that Jet is happy with the level and quality of services that we have consistently provided, and appreciate the award of this contract that enables us to extend the support we provide to its operations," he adds.