ST Engineering receives a major boost from P2F work

Singapore-based technology, defense and engineering group ST Engineering saw a 27% annual increase in revenue from its aerospace business in the third quarter of last year as the company made progress in converting passenger aircraft to cargo. . An order for 18 A320 family aircraft conversions for the BBAM aircraft lessor in San Francisco, California, announced in August last year, came as a particularly welcome boost. The use of MROs was over two-thirds of its total capacity in the first nine months of last year.

ST Engineering increased its order book to $ 18.2 billion ($ 13.5 billion) in September from $ 15.4 billion at the end of 2020, and secured $ 1.82 billion. of new contracts in the third quarter. The new agreements included a five-year hourly component maintenance contract from Japan Airlines, a five-year MRO CFM56-7B engine contract from Alaska Airlines and a five-year aircraft body maintenance contract for a low -Cost from Asia. bearer.

“Compared to the rest of the world, Asia-Pacific has seen a slight improvement in air travel in 2021,” said Jeffrey Lam, president of ST Aerospace’s commercial aerospace department. AIN. “Although some momentum has accumulated towards the end of the year, Omicron blocked it when governments in the region raised new barriers to entry and exit. We expect that domestic travel and MRO work on narrow-sleeved aircraft will continue to lead in the short term to recovery in Asia-Pacific, unless governments decisively remove travel bans or restrictions that encourage more international travel. ”

ST Engineering has over 45 years of experience in aviation, supported by an experienced team of engineers and technicians from facilities in Asia-Pacific, USA and Europe. “We have proven lifecycle solutions, from design and engineering, original equipment manufacturing (OEM), MRO services to aircraft and engine leasing,” Lam said.

Despite the challenges that Covid-19 will continue to present to the global aviation industry in 2021, the MRO business has seen the fastest recovery, he said, while the recovery of the MRO business with components and engines has been slower. , because many operators were still using green time equipment.

“The freight market and our cargo ship conversion business has been a highlight in 2021,” he said. “Increased interest in dedicated cargo ships has resulted in a number of orders, with the conversion slots for our Airbus program fully booked by 2024. Our OEM business has also seen improvements, our largest platform program , A320neo, recording a steady recovery. ”

Anke Lemke, head of communications at Elbe Flugzeugwerke GmbH (EFW), said AIN The German-based company has served as the center of excellence for Airbus P2F conversions for nearly three decades, performing approximately 200 A300 and A310 conversions for approximately 40 customers worldwide; ST Engineering now owns 55% of EFW, while Airbus owns the remaining 45%.

“Due to high demand for the new Airbus cargo plane, EFW is increasing capacity in Dresden, Germany (six lines by 2023) and has added conversion sites in Singapore (A321 and A330) and in China and the US, which both host locations. , one for the A321 and one for the A330, all fully supported by the EFW team of engineers in Dresden, Germany, ”she said.

“ST Engineering converts the A321 to Singapore Seletar (five in 2021) using the EFW Supplemental Type Certificate (STC) and made the first A320 in December,” said Chris Seymour, head of market research at Ascend by Cirium. AIN. “They also plan to start converting to their Guangzhou unit.”

Lam said the ST maintained a positive outlook for medium- and long-term demand in the P2F conversion market. The air freight sector continues to grow strongly, driven by e-commerce, time-sensitive and high-value goods such as Covid vaccines, and massive shipping delays.

With a diversified global business, ST Engineering does not depend on just one country, such as China, Lam said. It serves customers from key airline locations such as Shanghai, Beijing, Hanoi, Ho Chi Minh City, and Singapore. “We have just set up our first physical footprint in Vietnam through a joint venture with Vietnam Airlines in recent years, so we will focus on increasing our operations and increasing our capacity there,” he concluded.

https://www.ainonline.com/aviation-news/air-transport/2022-02-13/st-engineering-gets-major-boost-p2f-work ST Engineering receives a major boost from P2F work

Back to top button