ST Aerospace and Vietnam Airlines have signed a memorandum of understanding to set up an MRO joint venture in Vietnam.

The JV, to be headquartered at Hanoi's Noi Bai International airport, will cater to Vietnam Airlines' MRO requirements.

It will start with component support for pneumatics, hydraulics and electrical parts, before potentially increasing the collaboration to include aerostructure and airframe MRO.

The partnership will leverage Vietnam Airlines Engineering Company (VAECO)’s existing facilities in Hanoi and Ho Chi Minh City, as well as ST Aero's core expertise in MRO to develop these facilities and their capabilities, say both companies.

The cooperation will help Vietnam Airlines shorten turnaround times for maintenance and repairs, reducing the need to send some components overseas.

Neither party stated the timeframe for the JV to be established.

Separately, ST Aero and Vietnam Airlines entered into a 14-year maintenance by the hour contract for component support of the carrier's fleet of 58 Airbus A321s ceos, as well as 20 new A321s that will be delivered from mid-2018.

Under the contract, ST Aero will set up an inventory base in Vietnam.

“The robust development of the economy and a burgeoning middle class have created an ideal environment for the growth of the aviation industry in the Asia-Pacific region, and Vietnam’s double-digit growth in the air travel sector is the best reflection of this. Riding on this growth, strategic partnerships with established industry participants such as Vietnam Airlines will enable us to increase our regional footprint and better penetrate high-growth markets,” says Lim Serh Ghee, president of ST Aero.

Source: Cirium Dashboard