A component joint venture between Vietnam Airlines Engineering Company (VAECO) and ST Engineering has officially launched in Vietnam.
"[Firming] the memorandum of understanding signed between VAECO and ST Engineering's Aerospace sector in April 2018, the launch marked the establishment of the first and only aircraft component MRO joint venture in Vietnam to date," says Vietnam Airlines.
The joint venture is called Vietnam Singapore Technologies Engineering Aerospace (VSTEA). It is sited within VAECO locations at the airports of both Ho Chi Minh City and Hanoi. The pair previously announced that ST Engineering would hold 49%, and VAECO 51%.
VSTEA will provide component MRO support to domestic and international airlines for types such as the Boeing 787, Airbus A320, A321, A350, and ATR 72.
It will also offer technical assistance with avionics, hydraulics, pneumatics, electromechanical systems, wheels, brakes, and emergency equipment.
"Our partner, ST Engineering Aerospace, is one of the world's largest MRO service providers in terms of scale and development capability," states Vietnam Airlines chief executive Duong Tri Thanh.
"We believe this co-operation will bring significant benefits for both Vietnam Airlines and ST Engineering Aerospace in the growing aviation industry, marking the beginning of more fruitful achievements in the future."
ST Engineering president Lim Serh Ghee noted that in addition to Vietnam Airlines being a major customer, VSTEA marks the company's first facility in Southeast Asia beyond Singapore.
"Combining Vietnam Airlines' high-quality aviation talent and ST Engineering's vast experience and expertise in MRO, our new joint venture will bring to the market world-class maintenance services that keep operators' aircraft flying safely and smoothly," says Lim.
Separately, ST Engineering's aerospace arm injected $6.4 million into ST Engineering Aerospace Resources (STEA Resources) as a flow-through injection destined for joint venture company Keystone Holdings.
"These capital injections, funded through internal cash, bring the group's total share capital contribution in STEA Resources and Keystone Holdings to about $55.4m and $24.8m, respectively," says ST Engineering.
Keystone is a 50:50 joint venture between STEA Resources and SJ Aviation Capital. It serves as a holding company for aircraft leasing investments.