KUALA LUMPUR (May 25): Malaysia Aviation Group Bhd (MAG), the holding company of Malaysia Airlines Bhd, has signed an agreement with Lufthansa Technik AG on a strategic partnership framework for a joint venture (JV) to establish a regional maintenance, repair and overhaul (MRO) facility.
The facility, planned for 2017, would be based at Malaysia Airlines' existing facilities at the Kuala Lumpur International Airport and would service the Boeing 737 and Airbus A320 family of aircraft, said MAG.
The JV is expected to see the creation of additional jobs as well as introduce state-of-the-art technical capabilities for base maintenance services and best practices in operations, creating a centre of excellence for the region, it said in a statement today.
"We are excited about the tangible benefits of the JV. Lufthansa Technik is one of the global leaders in MRO services, and the level of skill, expertise and technological transfer will be invaluable, both for us and for Malaysia", said MAG group chief executive officer (CEO) Christoph Mueller.
"Once this new JV becomes true, we will extend significantly our MRO capabilities in one of the most emerging markets worldwide," said Lufthansa Technik CEO Johannes Bussmann.
"With Malaysia Airlines at our side, we will have a strong regional partner to create a real success story with this new business," he added.
The formation of the JV will be subject to approvals from the regulatory authorities and the signing of definitive agreements, said MAG.