KUALA LUMPUR (July 21): Sapura Resources Bhd’s wholly-owned subsidiary Sapura Aero Sdn Bhd (SASB) and Lufthansa Technik AG are setting up a maintenance, repair and overhaul (MRO) service provider, specialising in narrow- and wide-body aircraft base maintenance.

In a filing with Bursa Malaysia, Sapura Resources said both parties signed a Memorandum of Understanding (MoU) today to establish the company, which will primarily serve the Malaysian, South Asian and Southeast Asian markets.

Under the MoU, SASB and Lufthansa Technik will explore feasible business models and structures, whereby the proposed company may be operated and governed as a base maintenance facility within the latter’s existing base maintenance network, according to its existing standards and processes.

Lufthansa Technik is the leading provider of MRO and modification services for civil aircraft, said Sapura Resources, and has eight product divisions: Line Maintenance; Base Maintenance; Component Services; Engine Services; VIP Services; Landing Gear Services; Original Equipment Innovation; and Digital Services for the entire Lufthansa fleet and third party customers.

The Lufthansa Technik Base Maintenance Product Division offers Light and Heavy Base Maintenance services within its SixToONE production network of facilities. The SixToONE network currently includes facilities in Shannon (Ireland), Budapest (Hungary), Sofia (Bulgaria), Malta, Aguadilla (Puerto Rico) and Manila (Philippines).

The supporting services such as Engineering and Planning, Information Technology, Material Management and Sales are provided centrally to all facilities in the network.

“The SixToONE concept standard in principle requires a central contract holder for all Base Maintenance services contracts being represented by Lufthansa Technik AG Germany,” said Sapura Resources.

On the site selection, Sapura Resources said potential sites are not just limited to Malaysia and any other country within the South Asian and Southeast Asian regions could be selected.

“The parties shall jointly define the criteria for such site selection and if it is to be located within Malaysia, it will be performed by SASB or any of its affiliated companies,” the group said.

Unless mutually agreed in writing to be extended to a later date, both SASB and Lufthansa Technik have agreed to kick-start the project and finalise respective discussions and assessments by March 31, 2018.