MAS Aerospace Engineering (MAE) has signed a Letter of Intent to purchase Transmile’s Engineering & Maintenance unit. The proposed acquisition involves the purchase of Transmile’s base maintenance and engineering capabilities, including two hangars, equipment, and employment of its skilled manpower atits Subang base.

The deal will also include MAE continuing to provide heavy maintenance services to Transmile’s freighter fleet of nine Boeing 727s, three 737s and four McDonnell Douglas MD-11s. Transmile will also continue to perform its own online maintenance checks in Malaysia and elsewhere.

MAE has been actively building up its third-party MRO businesses with a target revenue of US$141 million this year. Currently MAE has more than 80 customers, including Air Atlanta, Lufthansa, Saudi Arabian Airlines, Jet Airways, Delta and GECAS, one of the world’s largest fleet owners and lessors.

MAE’s managing director, Encik Mohd Roslan Ismail said: “Upon the completion of the acquisition, MAE is expected to be the largest airframe MRO in Asia Pacific with eight hangars and the capacity to accommodate 28 widebody and narrow body aircraft at any one time. This 15 per cent increase in additional capacity will serve us well in our growth plans and give us better economies of scale. We will have a multi-year contract to perform heavy maintenance on Transmile’s fleet. This will improve their efficiency as they will benefit from our large scale and broad capabilities. Future collaboration may include passenger-to-freighter aircraft conversions that will replace Transmile’s fleet over time.”