Singapore Technologies Aerospace (ST Aerospace) has secured a seven-year contract with British-based low-cost airline Flybe worth more than $100m (£63m).
The seven-year contract will provide Flybe with comprehensive Maintenance-By-The-Hour (MBH) support provided by ST Aerospace, which covers component exchange, repair, overhaul, modification, reliability monitoring and logistics services.
This round the clock support and monitoring from ST Aerospace will be used by Flybe for its growing fleet of Bombardier Q400 aircraft.
For a fixed rate per hour, Flybe will select a range of support services and pay a corresponding flight per hour rate to ST Aerospace which is pre-determined.
Flybe hopes the arrangement will help keep operating costs down and minimise fixed asset inventory holdings in terms of spares or maintenance equipment.
The new contract follows an existing agreement between the two companies signed in 2004.
The contract is not expected to have any material impact on ST Engineering’s earnings for the current financial year.
Flybe CEO, Saad Hammad, said ST Aerospace was the right partner for the company as it expanded its Bombardier fleet.
“We have built up a strong working relationship with ST Aerospace over many years and they continue to provide Flybe with a high level of service, in support of our Bombardier Q400 fleet,” he said.
“ST Aerospace has demonstrated through a competitive process that they are the right partner for Flybe as we drive forward with our fleet expansion programme.”
ST Aerospace currently provides integrated component support on a MBH basis for over 20 aircraft operators throughout Asia-Pacific, Europe and the Middle East.
Flybe is Europe’s largest regional airline which operates out of more UK airports than any other airline.
ST Aerospace President Lim Serh Gee said his company were delighted to play a part in Flybe’s fleet expansion by providing its MBH services and continuing its partnership.
“We are happy to play a role in Flybe’s fleet expansion journey which has grown more than four folds over the last decade,” he said.
“This contract extension speaks of the long-standing partnership we have with our customer. It is also a testament of the success of our MBH programme, which delivers long term value to our customers operations.”