Singapore Technologies Aerospace (ST Aero) is to close and sell its DalFort Aerospace maintenance facility after the Dallas Love Field-based arm failed to be profitable.

The aircraft maintenance, repair and overhaul company disclosed the "immediate" shutdown in its third-quarter earnings report, which included a S$59.1 million ($34.3 million) pre-tax net profit. This represents a 12% improvement over the same period last year, but the company says "underlying economic conditions remain volatile".

"DalFort Aerospace will be closed and negotiations are being conducted with prospective buyers for the sale of the facilities," says ST Aero.

DalFort is one of three ST Aero facilities in the USA. The company has a presence in Mobile, Alabama, and last year added a facility in San Antonio after acquiring the assets of bankrupt Dee Howard Aircraft Main- tenance. ST Aero had previously been bullish on expansion in the USA and had also planned to build a fourth US facility in Corpus Christi, Texas. But these plans were quietly dropped several months ago and it has now decided to downsize its US presence to just two facilities.

According to ST Aero president Tay Kok Khiang, DalFort's "limited facilities capacity adversely affects business opportunities at DalFort". He says the operation, which includes six narrowbody maintenance bays, has suffered from a "very low level of activities" over the last three years and is unprofitable.

ST Aero's services in the USA will not be affected by the DalFort closure. "ST Aero remains committed to the US aviation market and believes in the longer term potential of the US market," Tay says.

Source: Flight International