MAHB, Dviation to set up MRO facility in Subang Airport

KUALA LUMPUR (May 25): Airport operator Malaysia Airports Holdings Bhd (MAHB) has teamed up with home-grown specialised aviation solutions provider Dviation Group of Companies to set up a maintenance, repair and overhaul (MRO) facility at the Sultan Abdul Aziz Shah Airport in Subang, Selangor (Subang Airport) that offers end-to-end aftermarket services including MRO, aircraft teardown, aircraft material recycling and parts trading.

“Another initiative of the Subang Airport Regeneration plan, it aims to elevate Malaysia’s competitive landscape by building partnerships with internationally recognised Malaysian-based aviation solution providers,” said MAHB in a statement today.

“The new facility will further strengthen the Subang Airport’s position as a preferred MRO hub in the region as it has the potential to capture a significant part of the US$3.64 trillion (about RM15.08 trillion) aftermarket services market share in Asia-Pacific in the next 20 years for Malaysia.

MAHB head of KLIA Aeropolis Randhill Singh said based on the latest report by Boeing, Asia-Pacific is expecting the highest aircraft deliveries at 41% of total deliveries globally in the next 20 years.

“That makes out to be approximately 17,500 of aircraft deliveries that include the narrow-body, wide-body, regional jets and freighters.”

He added that the aftermarket services market size in Asia-Pacific, on the other hand, is also expected to capture the largest market share at 40% of the total globally.

“We are seizing the opportunity and fully committed to growing the aerospace and aviation industry for the country. Our Subang Airport Regeneration initiative will ensure the presence of a holistic and future fit ecosystem to serve the Asia-Pacific market.

“Moreover, when an aircraft retires after around 20 to 25 years in service, an estimated 85% to 95% of its weight can be recycled to ensure proper disposal, and we can also take advantage of the many high-quality components it is made of. This multidisciplinary process that involves different aspects of economics of aircraft and an improvement in the environmental performance presents new opportunities here in Malaysia,” said Randhill.

“With an estimated 12,000 aircraft retiring in the next two decades, and a significant portion of this being aircraft based in Asia-Pacific, we believe that setting up a dedicated teardown facility fits well within our portfolio and at the same time serves as an ideal platform for the aviation community in this region to help reduce environmental footprint,” said Dviation Group group managing director Kevin Teoh.

Dviation Group provides aviation consultancy, technical training, manpower solutions, fleet technical management and aircraft maintenance services. Headquartered in Selangor and Zug, Switzerland, its presence spans across Asia, Europe and the Middle East.

At 11.07am, MAHB shares were down nine sen or 1.64% at RM5.39, bringing a market capitalisation of RM8.94 billion.

Source: TheEdgeMarkets