New Straits Times

AIRBUS FINAL ASSEMBLY LINE IN LABU?

Aircraft manufactur­er agrees to conduct project feasibilit­y study within 18 months

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AIRBUS SE has agreed in principle to conduct a feasibilit­y study for an investment to build a final assembly line (FAL) in Negri Sembilan.

State Investment, Industrial­isation, Entreprene­urship, Education and Human Capital committee chairman Dr Mohamad Rafie Abd Malek said this was agreed during talks between Airbus and one of its biggest customers, AirAsia Group Bhd.

“The state government is grateful to Tan Sri Tony Fernandes (AirAsia X co-chief executive officer) in sparking Airbus’ interest to consider opening the FAL facility at the proposed aviation hub to be developed in Labu, near here.

“If Airbus agrees, this will be Airbus’ fifth location for FAL facilities, besides Toulouse (France), Hamburg (Germany), Alabama (the United States), and Tianjin (China),” said Rafie, here, yesterday.

He said a special committee comprising representa­tives from the state government and AirAsia had been set up to conduct due diligence on the aviation hub developmen­t.

Rafie said besides the FAL facility, the state government hoped to create a commercial maintenanc­e, repair and overhaul (MRO) centre for aircraft, engine and components at the aviation hub.

In its commitment letter dated July 15 to AirAsia, the world’s larger aircraft manufactur­er said it would conduct the project’s feasibilit­y study within 18 months.

“The study will also cover a detailed technical, marketing and finance analysis to assess the long-term economic viability of the project.

“Various options will be considered such as MRO, a training centre, a data centre, possible industrial cooperatio­n, and Airbus supplier implantati­on,” he said.

Fernandes said among the matters raised by Airbus during their meeting were land area and skilled workers.

“We used our orders to interest them (Airbus) to invest in Malaysia. The most important thing for Airbus is having the right people. So, this a wonderful opportunit­y for Malaysia to bring in a lot of high-skilled jobs into Malaysia,” he said.

 ?? PIC BY HAFZI MOHAMED ?? AirAsia X Group co-chief executive officer Tan Sri Tony Fernandes (right) and Negri Sembilan state Investment, Industrial­isation, Entreprene­urship, Education and Human Capital committee chairman Dr Mohamad Rafie Abd Malek with the Airbus letter...
PIC BY HAFZI MOHAMED AirAsia X Group co-chief executive officer Tan Sri Tony Fernandes (right) and Negri Sembilan state Investment, Industrial­isation, Entreprene­urship, Education and Human Capital committee chairman Dr Mohamad Rafie Abd Malek with the Airbus letter...

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