Home' Asian Aviation : AAV April 2010 Contents Abu Dhabi's state-owned investment
company Mubadala Development
has become increasingly involved
in the aviation maintenance, repair
and overhaul (MRO) industry in
e company owns 100 percent of Abu Dhabi
Aircraft Technologies -- formerly Gulf Aircraft
Maintenance (GAMCO) -- and in February 2009
increased its holding in Zurich-based SR Technics
from 40 percent to 70 percent.
Announcing its 2009 nancial results on 22 March,
Mubadala said the Swiss-based MRO provider was one
of "the main contributors to growth in total revenue".
e revenue gure almost doubled from a year earlier
to 13.1 billion dirhams (US$3.6 billion), with SR
Technics contributing about 4 billion dirhams, despite
the overall slump a ecting the aviation industry.
SR Technics started out as the technical arm of
Swissair, founded in 1931, and was then spun o as
a separate company within the group in 1997. With
the collapse of its parent airline in 2002, SR was
handed over to new owners, with 3i group holding a
majority 56 percent stake, Star Capital 20 percent, the
company's management 12 percent and the remainder
divided among other investors.
e company expanded in 2004 by acquiring FLS
Industries MRO capacity in the UK and Ireland. With
that move, SR Technics became one of the world's
biggest independent MRO providers. By 2005, the
company was maintaining more
than 750 aircra from customers
all over the world, signing a major
contract with British low-cost
In 2006, SR Technics was acquired
by a consortium of three investors
from the United Arab Emirates
-- Mubadala, Dubai Aerospace
Enterprise and Istithmar World.
The Swiss-based company stuck
with its existing strateg y under its
new owners, focusing on o ering
integrated MRO solutions and
With Mubadala increasing its
stake last year, DAE remains as the
company's other shareholder, retaining its 30 percent
stake. Today, SR Technics employs 4,170 people as of
January. Its facilities include ve hangars and cover
about 355,000 square metres.
e MRO provider says it has about 500 customers
now, including ag carriers, low-cost carriers, aircra
leasing companies and manufacturers. It also operates
an extensive network of line stations at 15 airports
across Europe and Asia, as well as logistics centres at
London-Heathrow and Zurich airports.
SR Technics' operating revenue for 2008 totalled
1.76 billion Swiss francs (US$1.65 billion).
In Asia, the company operates maintenance facilities
in Shanghai, through its Shanghai SR Aircra Technics
joint venture with Shanghai Foreign Aviation Ser vices
Corp (FASCO), which has been operational since
July 2006. e venture has a 566 square metre facility
at Shanghai Pudong International Airport, and plans
eventually to extend its operations to other airports in
the region, as well as o ering technical training and
other ser vices.
Shanghai SR started out by signing a maintenance
agreement with Transmile, providing line maintenance
and other technical support for the carrier's Boeing
MD-11 freighters during their transit stops in
Shanghai. The following year, in July 2007, the
company signed a line-maintenance contract with
Singapore Airlines (SIA), covering support for the
carrier's Boeing 777 and 747 aircra during transit
stops. e agreement also covered SIA 747 freighter
operations into Shanghai.
"Establishing a physical presence in the region
through joint ventures and partnerships is a key
element of our expansion strategy for the Asia-Paci c
region," the company said.
SR Technics other customers in Asia include Air
India and Garuda Indonesia. In February, the MRO
provider signed a two -year extension of its contract
with Air India's parent National Aviation Company
of India Ltd (NACIL), covering maintenance ser vices
for the carrier's CFM International CFM56-5B and
" is contract is another step towards ful lling our
growth strategy in international markets," said Ray
Sisson, SR Technics' chief commercial o cer. e
MRO provider o ers engine services to more than 130
of its global customers.
e contract extension was valued at 60 million Swiss
francs and covers 61 aircra , including both Airbus
A320-family types and Boeing 737-800s. e work
will be carried out at SR Technics' engine maintenance
centre in Zurich. e Swiss-based company said it
has been "Air India's preferred maintenance services
provider" for the CFM56 and Pratt & Whitney
PW4168 engines since 2007.
e PW4168 turbofan powers Air India's eet of
Airbus A330-200 widebody twinjets. SR Technics
also provides the carrier with component support
for that aircra type under an Integrated Component
Solutions (ICS) agreement.
In October, SR Technics extended its ICS contract
with Garuda until 2014. at agreement covers the
Indonesian carrier's eet of 10 A330s and will include
additional aircra of that type being acquired under
the carrier's eet expansion plan.
"Garuda Indonesia has set ambitious growth targets
and SR Technics will fully engage in supporting these
goals," said Gerry Timoney, the MRO provider's
executive vice-president for sales.
With the strength of SR Technics' brand and the
company's boost to Mubadala's nancials in 2009,
despite the global economic crisis and a slump in
air travel demand, the Abu Dhabi-based company
is certainly congratulating itself on a shrewd
SR Technics goes for growth
SR Technics has changed much since its beginnings as the maintenance arm of now-defunct Swissair. The
company is pursuing a global expansion strategy that includes plans for Asia, writes Andrzej Jeziorski.
AsianAviation | APRIL 2010 37
Test aircraft number 3 is the first to be fitted
with a partially furnished passenger cabin.
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