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Vietnam Airlines to establish JV with ST Aerospace

Released at: 16:43, 28/04/2018

Vietnam Airlines to establish JV with ST Aerospace

Photo: Vietnam Airlines

Two to establish joint venture for aircraft maintenance and implement contract on spare parts supply.

by Ngoc Lan

Vietnam Airlines and Singapore Technologies Aerospace Ltd (ST Aerospace), a subsidiary of ST Engineering Ltd, signed a memorandum of understanding (MoU) on April 26 to establish a joint venture for aircraft maintenance and implement a contract to supply spare parts.

The MoU was signed in the presence of Prime Minister Nguyen Xuan Phuc, on the second day of his official visit to Singapore, at the Vietnam-Singapore Business Forum 2018.

The joint venture is to be headquartered at Noi Bai International Airport in Hanoi and provide maintenance for high-tech aircraft, with an average capacity of handling 17,500 pieces of machinery each year.

The two sides will also continue to study and expand the scope of cooperation, maintenance, training, and exchange of aircraft technical personnel.

The project will contribute to improving high technology used in the maintenance and repair of aircraft equipment in Vietnam, ensuring absolute safety, speed, and efficiency.

The cooperation will help Vietnam Airlines carry out maintenance and repair of aircraft equipment right in Vietnam, saving time and cost in sending its overseas, as previously.

With a contract to supply spare parts, ST Aerospace will set up an inventory base in Vietnam in order to provide timely service to Vietnam Airlines’ fleet of A321s, including 58 A321ceos, 20 A321neos, and A321s. This advanced form of aircraft spare parts supply ensures efficient operation.

Mr. Dang Ngoc Hoa, Deputy General Director of Vietnam Airlines, said the cooperation is a new step in the overall development of Vietnam’s aviation industry, in which Vietnam Airlines has played a pioneering role in utilizing advanced science and technology from around world. “I believe that the cooperation between Vietnam Airlines and Singapore’s leading aerospace company, ST Aerospace, will contribute to promoting bilateral economic, trade and aviation relations between Vietnam and Singapore,” he said.

Mr. Lim Serh Ghee, General Director of ST Aerospace, said that the boom in Vietnam’s economy and passenger demand have created the ideal environment for the development of the aviation industry in the Asia-Pacific region, aided especially by the double-digit aviation growth seen in Vietnam. “We are delighted to be partnering with Vietnam Airlines in supporting their A321ceo and A321neo fleets as well as strengthening our strategic partnership through joint ventures,” he said. “Strategic partnerships with reputable partners such as Vietnam Airlines helps us grow our presence in the region and in major markets.”

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