Sapura Resources plans tie-up with Lufthansa unit
Collaborated group to offer MRO services in the region
KUALA LUMPUR: Sapura Resources Bhd plans to team up with German airline Lufthansa’s maintenance, repair and overhaul (MRO) services arm Lufthansa Technik AG to offer aircraft MRO services in Malaysia, South Asia and South-East Asia.
In a filing with Bursa Malaysia, the property investment and aviation support service company said its unit Sapura Aero Sdn Bhd (SASB) had inked a memorandum of understanding (MoU) with Lufthansa Technik AG to set up an MRO service provider in the area of narrow-body and wide-body aircraft base maintenance.
“Potential types of cooperation include but are not limited to a joint venture, an investor relationship, a landlord-tenant relationship or a combination of these types,” it said.
It said the proposed company might be operated and governed as a base maintenance facility within the existing base maintenance network of Lufthansa Technik.
On the location of the facility, Sapura Resources said potential sites included, but were not limited to, Malaysia and any other countries within South-East Asia and South Asia.
“The parties shall jointly define the criteria for such site selection and if it is to be located within Malaysia, it (the site selection) will be performed by SASB or any of its affiliated companies,” it added.
The company said the parties targeted to finalise respective discussions and assessments by March 31, 2018, unless they mutually agreed in writing for the process to be extended to a later date.
Lufthansa Technik is the leading provider of maintenance, repair, overhaul and modification services for civil aircraft.
Its eight product divisions offer 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 Sapura Resources group’s involvement in aviation started in August 2012 when it acquired a controlling stake in Dnest Aviation Services Sdn Bhd.
Its aviation division, which contributed 51% to the group’s revenue in the financial year ended Jan 31, 2017 (FY17), provides aircraft ground handling, hangarage and office spaces, as well as aircraft management and charters at the Subang and Senai airports.
However, being still in the growth phase, the segment incurred a 17% higher pre-tax loss of RM9.64mil for FY17 despite enjoying a 15% growth in revenue to RM26.32mil.