May 22, 2007 21:51 PM
KUALA LUMPUR, May 22 (Bernama) -- AirAsia Bhd will save between 15 percent and 20 percent when it diverts its maintenance, repair and overhaul (MRO) services back to Malaysia from Singapore, its chief executive officer, Datuk Tony Fernandes said Tuesday.
"Maintenance makes up about 25 percent of AirAsia's operating cost," he told reporters after the signing of a deal here today between AirAsia Bhd and the MRO provider, Sepang Aircraft Engineering Sdn Bhd.
"Our airplanes now just need to be towed to SAE as opposed to flying them to Singapore. That is a huge saving already," he added.
He said SAE, which aims to open for business this October 1, stands to potentially clinch US$40 million from AirAsia as its anchor client.
Meanwhile, SAE chief executive officer Syed Budriz Putra said the company was also looking at luring regional budget airlines, especially those from India.
"This is because they (Indian budget airlines), like Kingfisher and Indigo also use the A320 planes just like AirAsia and we can capitalise on that," he said.
"But we are able to do narrow body as well," he said, adding that the RM80 million MRO facility has two wide-bodied hangar on an eight-acre site.
Syed Budriz also said that the company expects to set up another two wide-bodied hangar on an adjacent eight-acre land by end of next year.
-- BERNAMA
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