Singapore Technologies Engineering (ST Engineering) on Monday said its aerospace arm, Ltd won a 15-year contract for Boeing 787 aircraft component support by Gulf Air.
Under the agreement, ST Aerospace will provide comprehensive component maintenance-by-the-hour support covering component exchange, repair, overhaul, modification, reliability monitoring and logistics services for Gulf Air's new fleet of Boeing 787-9 aircraft.
Gulf Air is the national carrier of the Kingdom of Bahrain and operates scheduled services to 42 destinations in 25 countries.
ST Aerospace's maintenance-by-the-hour programme, renowned for its flexibility and high level of customisation, is well established among its global customers.
For a fixed rate per hour, the airlines select a range of support services and pay a corresponding flight per hour rate, which is pre-determined.
The programme helps operators keep operating costs low and also minimise fixed asset inventory holdings in terms of spares or maintenance equipment, the company said in a regulatory filing.
ST Aerospace provides integrated component support for a fleet of close to 600
aircraft on the maintenance-by-the-hour basis, for over 20 aircraft operators in Asia Pacific, Europe and the Middle East.
The contract is not expected to have any material impact on the consolidated net tangible
assets per share and earnings per share of ST Engineering for the current financial year, the company said.
Shares in ST Engineering ended unchanged at S$3.3 on the Singapore Exchange. The stock has risen about 5 percent in an year.
