China Airlines, Nordam Sign MOU for Joint Venture
By Ted Chen, Taipei Times | Mar. 04, 2017
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China Airlines Ltd (CAL) yesterday said it has inked a memorandum of understanding (MOU) on establishing an aircraft maintenance joint venture with U.S.-based Nordam Group Inc to tap the Asian aviation maintenance market.
The memorandum was signed in Taipei by CAL chairman Ho Nuan-hsuan and Nordam vice chairman and chief operating officer of the Asia-Pacific region T. Hastings Siegfried.
CAL, which declined to provide further details on the venture's funding and shareholding, said that the new company would be the first in Asia to offer maintenance services for thrust reverser and other aircraft composite parts.
The new company would be offering its services under the Nordam brand, CAL said, adding that its Tulsa, Oklahoma-based partner has been seeking to boost and expand its repair services in the Asian market since last year.
Through the joint venture, CAL is hoping to elevate its capacity to perform thrust reverser maintenance for its own fleet, the airline said.
Support from Nordam Group would also help the Taiwanese company's capacity in servicing composite parts, such as aircraft nosecones, noise-reduction fins on aircraft wings as well as the fuselage, the airline said.
The joint venture is a continuation of a decade-long partnership with Nordam Group in servicing airline's fleet of Airbus Group SE and Boeing Co aircraft, the companies said at the signing ceremony.
Aside from adding new long-haul flights to Europe, Ho has listed the airline's expansions into the aircraft maintenance market among his top priorities this year.
CAL is aiming to leverage its position as the nation's biggest airline in leading growth across Taiwan's aerospace supply chain, and is looking to team up with Aerospace Industrial Development Corp (AIDC), the nation's largest civilian and military aircraft manufacturer, Ho said last month.
The company in January inked an agreement with Airbus to help the Taiwanese carrier improve its servicing capacity for Airbus aircraft, while setting its sights on aircraft retrofitting and cabin and frame modification businesses.
Ho said in January that CAL was in talks with Airbus to establish a parts procurement center in Taoyuan and that it is helping it select an appropriate site for the project.
In addition, CAL broke ground for a new facility that is to be operated by Taiwan Aircraft Maintenance and Engineering Co Ltd, a fully owned subsidiary.
CAL shares yesterday fell 0.99 percent to NT$10.05, underperforming the TAIEX.