| SME Aviation launches world’s first independent budget maintenance centre
BUSINESS TIMES - Tuesday, January 04 2005
By ZURAIMI ABDULLAH SME Aviation Sdn Bhd has positioned itself as the world’s first independent budget MRO (maintenance, repair and overhaul) centre, in hopes of getting a piece of the US$18 billion (US$1 = RM3.80) commercial aircraft maintenance market worldwide.
“Third party MRO services are a growing business worldwide and currently account for one third of the US$18 billion spent on commercial aircraft maintenance.
“It is set to grow significantly due to ever-increasing air traffic worldwide,” SME Aviation chairman Datuk Seri Yunus Tasi said at the company’s launch in Subang yesterday.
Yunus said Malaysia has the potential to capture 5 per cent of the global aircraft maintenance market, from less than 1 per cent now.
For one, Malaysia — through SME Aviation — offers much lower labour cost.
“We operate similar to the budget airlines that are growing in popularity worldwide,” Yunus said.
SME Aviation chief executive officer Ahmad Fuzli Fuad said MRO centres in the region charge about US$30 to US$35 per man hour. Charges in Europe are from US$75 to US$80.
“Our charges are substantially lower than the US$30 to US$35 in the region.”
Malaysia has six MRO service providers including SME Aviation, national carrier Malaysian Airline System Bhd and Transmile Bhd and most of them service their own fleet of aircraft.
SME Aviation, owned by Sarawak businessman Tan Sri Ahmad Johan, has targeted RM10 million to RM15 million revenue by servicing 18 aircraft in the next 12 months.
It already secured services contract for seven aircraft owned and operated by Indonesia-based Aventura Aviation.
SME Aviation signed a pact with Aventura yesterday to provide engineering support services to the latter’s aircraft operating in South-East Asia.
The company will also convert six Aventura Boeing 727 passenger aircraft into commercial planes.
“The PTF (passenger-to-freighter) of aircraft is part of our job scope. We predict a significant increase in demand for converted freighters in the next 20 years,” Yunus said.
SME Aviation also sealed a deal with sister company Airod Sdn Bhd, which will provide engineering support services to the former.
As part of the deal, Airod — also owned by Ahmad Johan — will allow SME Aviation to use its hangar to carry out MRO services.
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