China Aircraft Leasing Group (CALC) and its mid-to-end-of-life aircraft solutions unit Aircraft Recycling International (ARI) have signed an agreement with European maintenance, repair and overhaul (MRO) services provider FL Technics (FLT) to establish an MRO joint venture (JV) in Harbin, China.

The proposed JV, known as L ARI Aircraft Maintenance and Engineering Company (FL ARI), will provide MRO services for aircraft operating in Asia and Europe.

It will be established with an initial investment of $23m, with ARI, FLT and CALC holding 49%, 40% and 11% stakes in FL ARI, respectively.

FL ARI will primarily provide aircraft base maintenance and scheduled checks, as well as overhaul, aircraft disassembly, engineering services, technical training and consultation services.

The company will also provide MRO and supply service to a number of aircraft parts and components such as engine, auxiliary power unit (APU), and landing gear (LG).

CALC and ARI CEO Mike Poon said: “We are very pleased to form a partnership with FLT. With its cutting-edge technical capabilities and rich experience in aircraft maintenance services, FLT will help build quickly a sound aircraft MRO system for FL ARI.

“Development of comprehensive MRO services will further expand ARI’s service scope, complementing its aircraft recycling business.”

“Development of comprehensive MRO services will further expand ARI’s service scope, complementing its aircraft recycling business by achieving efficient placement of second-handed aircraft components.

How disruptive will the COVID-19 outbreak be on aerospace supply chains?

View Results

Loading ... Loading ...

“It will also create strong synergy, which sharpens ARI’s focus on providing mid to end-of-life aircraft solutions, and will further solidify our full value-chain strategy as we strive to strengthen our aircraft asset management capabilities.”

FL ARI is also expected to extend ARI’s presence to comprehensive MRO services market, complementing the company’s current aircraft disassembly and part-out service.

The JV is also set to help FLT boost its presence in Asia.

With a workforce of 1,200 employees in Indonesia (Asia), Lithuania (Europe), and within the network of 40 line stations across the globe, FLT primarily provides MRO services to narrow-body aircraft in Europe.