China Eastern teams up with jet engine maker on service

CHINA Eastern Airlines Corp Ltd and US-based Pratt & Whitney Corp have formed an aircraft engine maintenance venture in Shanghai, the companies said yesterday.

The companies jointly invested US$99 million in the Shanghai Pratt & Whitney Aircraft Engine Maintenance Co Ltd, with China Eastern taking a 51- percent stake, according to Li Yangmin, a vice president at the carrier.

Located in Qingpu, west of Shanghai, the facility will offer maintenance, repair and overhaul services on CFM56 series engines, which are used on many of today's commercial aircraft. The so-called MRO facility comprises 23,000 square meters, making it the largest such center in the Asia-Pacific region.

"We are pleased to cooperate with China Eastern Airline not only because of their reputation but also for their large and growing fleet," Pratt & Whitney President Stephen N. Finger said at yesterday's ground breaking ceremony.

China Eastern Airlines is the largest operator of CFM56 engines in the Asia-Pacific region, with more than 300 of the powerplants in its fleet and another 50 on order through 2011.

The Chinese partner of Singapore Airlines Ltd is also looking forward to enhancing maintenance efficiency and cutting costs in its quest to improve profitability against a backdrop of soaring jet fuel prices, Li said.

"The maintenance period could be shortened and cost advantages achieved compared with sending engines abroad for repairs," Li said.

"The center will also play a vital role in developing China's engine MRO industry."

The new plant, which is scheduled to take in its first engine next year, will have an annual maintenance capacity of 200 to 300 engines and employ 800 workers when it's running at full speed in 2009.

Finger pledged to bring state-of-the-art engine service to Shanghai, not only aiming to serve China Eastern Airlines but also other customers in the Asia-Pacific region.

China' engine MRO business is expected to grow quickly as the country's carriers are adding planes to meet increasing transport demand.

China's air fleet will likely quadruple to 4,460 planes in the next 20 years, according to a report from plane maker Boeing Co.

Pratt & Whitney, a subsidiary of United Technologies Corp, is a world leader in the design, manufacture and service of aircraft engines. The Shanghai venture is its 23rd plant worldwide.

Its CFM56 engines and V2500 engines hold a large market share in China, powering the products of Boeing, Airbus and regional jet makers.