Singapore Technologies Engineering Ltd said its unit won a US$130 million contract from AirAsia Bhd to provide maintenance services for plane components.

ST Aerospace Supplies will service components of as many as 130 Airbus SAS planes in AirAsia's fleet for 10 years, Singapore-based ST Engineering said in a statement on January 12.

ST Engineering's aerospace unit is the world's largest airline maintenance company, Bloomberg News reported.

Asia's economic growth has spurred demand for travel, prompting airlines, including low-cost carriers, to expand their fleets, and increasing the need for maintenance, repair and overhaul services.

AirAsia and at least 17 other budget carriers have been operating in Southeast Asia since 2001.

The agreement marks the first time ST Engineering will provide services for components of Airbus planes in AirAsia's fleet.

AirAsia awarded four maintenance contracts to ST Aerospace totalling US$133 million from 2002 to 2004.

ST Aerospace, which accounts for about 38 percent of ST Engineering's sales, had a profit of US$41 million in the three months to September, 14 percent higher than a year earlier. The firm's third-quarter sales increased 40 percent.