Brazilian aircraft manufacturer Embraer, a prominent player in the Aerospace & Defense industry with a market cap of $2470.88M according to InvestingPro, has signed a non-binding memorandum of understanding (MOU) with SIA Engineering’s Philippines unit (SIAEP) to explore maintenance, repair, and overhaul (MRO) opportunities for the E-Jet E2 family aircraft. The agreement was signed during the MRO Asia-Pacific event in Singapore on Wednesday.
Frank Stevens, Vice President of Global MRO Centers for Embraer, stated that the MOU "lays a good foundation" for further support of the growing E-Jet E2 fleet in the Asia-Pacific region. He also recognized SIAEP's years of dedication and support to Embraer's E-Jet operators in the region.
Jeremy Yew, SIAEC’s Senior Vice President Base Maintenance, expressed his anticipation about extending SIAEP’s existing partnership with Embraer to include quality and efficient base maintenance services for the E2 fleet in Asia-Pacific.
InvestingPro data shows that Embraer's revenue growth has been accelerating, with a reported growth of 24.49% LTM2023.Q2, and its liquid assets exceed short-term obligations. This financial stability, coupled with the fact that analysts predict the company will be profitable this year, as per InvestingPro Tips, could potentially make this partnership more beneficial for SIAEP.
SIAEP has been an authorized service center for Embraer’s first-generation E-Jets in the Asia-Pacific region since 2017. The recent collaboration comes as Embraer prepares to deliver its first batch of E2s next year to Southeast Asian operators Scoot and SKS Airways of Malaysia.
Earlier this week, on Monday, Scoot also signed a component pooling agreement with Embraer for its incoming fleet of E190-E2s. Both Scoot and SKS Airways announced their commitments to the E2 regional jets earlier this year. Scoot has signed a lease for nine E190-E2s, while SKS is taking 10 E195-E2s on lease.
In a separate development, SIAEC’s component joint venture renewed and expanded its partnership with Honeywell (NASDAQ:HON) for aircraft component repairs. The additional licenses awarded to Asia-Pacific Aircraft Component Services (APACS) cover Honeywell’s pre-cooler control valves and its air data inertial reference unit. The contracts span seven and ten years, respectively, covering control valves found on Boeing (NYSE:BA) 737 aircraft and Airbus aircraft.
Honeywell also extended a partnership agreement with Chinese MRO provider Ameco for MRO work on its auxiliary power units (APU). The two companies have been working together since 2009 under an APU MRO partnership.
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