On May 2, Singapore Technologies Aerospace Ltd (ST Aerospace), announced that its wholly-owned subsidiary, ST Aerospace Supplies, has secured a deal with another Chinese private-owned airline, Juneyao Airlines Limited. The agreement, worth US$16 million, involves components management and maintenance support on its Maintenance-By-the-Hour (MBH) programme for the airline's fleet of 15 Airbus A319 and A320 aircraft over seven years.

To date, ST Aerospace has ongoing component support programmes for United Eagle Airlines, China United Airlines, Spring Airlines and Okay Airways, all private airlines operating in China. ST Aerospace is the aerospace arm of Singapore Technologies Engineering Ltd (ST Engineering).

This contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.

"Juneyao Airlines aims to establish itself as an innovative airline that offers quality services at competitive prices. To deliver our promise of safe and reliable travel, we are pleased that a reputable and proven MRO provider such as ST Aerospace will support the components for our fleet." said Wang Junjin, Chairman, Juneyao Airlines.

"ST Aerospace is honoured that Juneyao Airlines has selected ST Aerospace for its components total maintenance requirements. This contract attests to the confidence amongst new and established airlines in ST Aerospace's component support programmes. We look forward to working closely with Juneyao Airlines to bring our extensive A320 capabilities to support its maintenance requirements." said Tay Kok Khiang, President, ST Aerospace.