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• Vietnam Airlines and ST Aerospace to boost aviation operations

April 26, 2018

Vietnam Airlines and ST Aerospace have teamed up to boost aviation operations and help Vietnam increase its footprint in the sector. A report by Channel News Asia said.

The two companies signed a memorandum of understanding (MOU) on Thursday (26 Apr) to set up a joint venture for ST Aerospace to provide Vietnam Airlines with Maintenance, Repair and Overhaul (MRO) solutions.

The joint project will be headquartered in the Noi Bai International Airport in Hanoi to cater to Vietnam Airlines’ requirements, as well as the region’s growing needs for aircraft MRO services.

This agreement was among 16 MOUs that were signed and witnessed by Singapore’s National Development Minister Lawrence Wong and Vietnamese Prime Minister Nguyen Xuan Phuc, on the second day of his official visit to Singapore. It took place at the Vietnam-Singapore Business Forum held at the Fairmont Singapore.

The partnership is expected to help Vietnam Airlines’ shorten turnaround time for maintenance and repairs as these will now be carried out in Vietnam. Currently, the planes have to be sent abroad. This will help to save costs and create higher operational efficiency.

Both sides have also entered a 14-year component Maintenance-By-the-Hour (MBH) contract. This will support Vietnam Airlines’ whole fleet of A321 planes. Under the MBH contract, ST Aerospace will set up an inventory base in Vietnam to provide timely services to the airline.

President of ST Aerospace Lim Seth Ghee said the robust development of the economy and a burgeoning middle class have created an ideal environment for the growth of the aviation industry in Asia Pacific, and Vietnam’s double digit growth in the air travel sector is the best reflection of this.

“Riding on this growth, strategic partnerships with established industry participants such as Vietnam Airlines will enable ST Aerospace to increase our regional footprint and better penetrate high-growth markets,” he said.

Executive Vice President of Vietnam Airlines Dang Ngoc Hoa said: “This partnership not only improves our fleet efficiency and world-class service quality, but also represents a major step forward for Vietnam’s aviation industry in general.”

Meanwhile, in his opening address at the forum, Minister Lawrence Wong identified three areas for further collaboration between the Singapore and Vietnam business community.

These include the energy sector such as Liquefied Natural Gas and renewable energy sources such as solar power, Smart Cities and Urban Solutions as well as the Digital Economy, especially in the cashless payments space.

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