MTU and China Southern Airlines are to establish a joint venture that will broaden their range of maintenance activities.

The move will strengthen Daimler affiliate MTU's position as a leading independent maintenance provider.

Following a feasibility study, the joint venture agreement should be finalised by June 1999 to permit operations of the emerging maintenance provider to begin in 2001.

A regionally based Centre of Excellence at Guangzhou in southern China will then start maintenance and repair work on the IAE V2500 and other engine families.

The joint venture will enable MTU to enter the high-growth Chinese market and offer many of its present customers a new maintenance base in Asia.

Source: Flight Daily News