Inside MRO News Briefs And Contracts

Highlights

Heico Plans Wencor Acquisition

Heico Corp. is planning its biggest MRO transaction yet: an acquisition of Wencor Group by the end of 2023.

Under an agreement announced May 15, Heico seeks to acquire Wencor Group for $2.05 billion, using a combination of cash and stock. It says the transaction will be its largest ever in terms of purchase price.

Based in Peachtree City, Georgia, Wencor is a commercial and military aftermarket company that provides a range of products and services, including aircraft replacement parts, aftermarket parts distribution and aircraft and engine accessory component repair and overhaul. It has 19 facilities across the U.S. and employs approximately 1,000 people.

Heico plans to make Wencor part of its Hollywood, Florida-based Flight Support Group, which offers design, engineering, manufacturing, repair, overhaul and distribution services for FAA-approved aircraft parts.

ST Engineering and SF Airlines Incorporate MRO Joint Venture

ST Engineering’s commercial aerospace division and SF Airlines incorporated a joint venture company on May 17 to set up an MRO facility at the new Ezhou Huahu Airport in China, which is a hub for the cargo carrier.

Known as ST Engineering Aerospace (Hubei) Aviation Services Co. Ltd., the joint venture launched with 100 million yuan ($14 million) in capital, with ST Engineering taking the majority 60% share. The incorporation finalizes the cooperation announced in February.

The first hangar is expected to be completed by 2025 and will service cargo and passenger airlines operating in the Asia region, including SF Airlines.

“China will be a strong growth driver for Asia’s commercial aerospace sector over the next decade,” Jeffrey Lam, ST Engineering commercial aerospace president, said in a statement. “A presence in Hubei, China, will enhance our MRO network in Asia to better meet and capture the rising regional demand, while our strategic collaboration with an airline partner will enable us to start up a greenfield operation quickly.” 

Magnetic MRO Opens New Tallinn Hangar

Magnetic MRO has opened a new hangar in Tallinn, Estonia, to further grow its line maintenance services.

The facility adds an additional 2,000 m² (22,000 ft.²) of hangar space to Magnetic MRO’s existing facility, providing a 40% increase in its line maintenance work capacity. The MRO provider says it also can increase its heavy line maintenance work by 30%.

The facility is equipped to perform several types of line maintenance work, including A checks, return to service, landing gear and engine changes, modifications and similar services.

The MRO specialist says the line station was opened in response to increasing demand for base maintenance work, which was taking up much of the space in its existing hangar at the station, leaving few slots for line maintenance. 

Contracts 

Aeronautical Engineers Inc. secured an order from Cargo Air to convert a fifth Boeing 737-800 to freighter configuration. Modification will start this month at Commercial Jet in Miami.

GA Telesis Engine Services won a Philippines AirAsia contract to provide CFM56-5B maintenance for 15 Airbus A320s.

Haeco ITM extended its Boeing 757-8F inventory technical management contract with Nippon Cargo for seven years.

Honeywell has secured a five-year MYAirline contract to provide model 131-9A APU maintenance for 22 Airbus A320-200s.

Lufthansa Technik has won a five-year contract from Chile’s JetSMART to provide continuing airworthiness management organization support and aircraft engineering services for its Airbus A320-family aircraft.

Pratt & Whitney Canada has secured a Falcon Aviation Services contract to provide maintenance support for its PW150 engines.

Rolls-Royce has won a Philippine Airlines contract to support the airline’s Trent XWB-97 engines under its TotalCare program.

Satair has secured a Singapore Airlines contract to provide its Integrated Materials Services solution, covering expendables.

SWISS-AS was selected by SunExpress for its AMOS MRO software system.

Triumph Group has won an ITP Aero contract to provide MRO support on accessory components, including propeller gearboxes, hydromechanical units, oil scavenge and fuel-boost pumps, anti-icing and overspeed drain valves.

Contracts source: SpeedNews