Representatives of ST Aerospace and Vietnam Airlines at the Vietnam-Singapore Business Forum in Singapore. (Source: channelnewsasia.com)

Singapore (VNA) – Vietnam Airlines and Singapore Technologies Aerospace Ltd (ST Aerospace) signed a memorandum of understanding (MOU) on April 26 to establish a joint venture for aircraft maintenance.

Taking place at the Vietnam-Singapore Business Forum in Singapore, the signing of the MOU was witnessed by Vietnamese Prime Minister Nguyen Xuan Phuc, who is on the second day of his official visit to the country.

The joint venture is earmarked to be headquartered at the Noi Bai International Airport in Hanoi and to provide Vietnam Airlines and other airlines across the region with ST Aerospace’s Maintenance, Repair and Overhaul (MRO) solutions, with an average capacity of 17,500 aviation machines a year.

The partnership will enable Vietnam Airlines to save time and costs as its planes’ maintenance and repairs will be done in Vietnam instead of sending abroad like at present.

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

Vietnam Airlines Executive Vice President Dang Ngoc Hoa said the partnership represents a major step forward for Vietnam’s aviation industry in general, with Vietnam Airlines being at the forefront of the process.

He added his belief that it will contribute significantly to Vietnam – Singapore ties in economics-trade and aviation development.

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

Strategic partnerships with established industry players such as Vietnam Airlines will help ST Aerospace increase its foothold in the region and high-growth markets, he said.-VNA