Singaporean aviation products and services provider, TPA, has signed a memorandum of understanding (MoU) with China Southwest Airlines and with China's Xi'an Xiang Yu Aviation Technical Group to set up a maintenance and engineering services joint venture.
The new company is to be called Aircraft Engineering Services and will cater for aircraft operators in mainland China and the Asia-Pacific region, says the Singaporean company. The largest shareholder in the new operation is TPA with 40%. Both China Southwest and Xi'an Xiang Yu each have a 30% shareholding in the venture.
TPA believes there is a Chinese market worth $100 million over the next six years for aircraft engineering and related services "including flight safety systems and other operational enhancement avionic systems".
The company says the joint venture agreement is "expected to be executed in May", and that thenew company "aims to secure a significant market share of the maintenance business".
Source: Flight International