Chinese Government Cleared The Partnership Monday
Nearly four years ago, Air China and CFM International agreed to
establish an innovative maintenance repair, and overhaul (MRO)
joint venture. After lengthy negotiations, the two companies have
cleared the final hurdle and have received Chinese government
approval for the formation of Sichuan Services Aero Engines
Maintenance Company (SSAMC), a 60/40 joint venture between Air
China and CFM, located in Chengdu, China.
SSAMC will combine Air China's extensive expertise with that of
CFM to create a truly world-class maintenance facility. The
facility, which previously operated as a Snecma Services overhaul
shop, completes 60 to 80 engine overhauls annually. The new joint
venture will expand Air China's engineering services, which already
provides aircraft maintenance, repair and overhaul services.
"Air China's objective is to have the most competitive MRO
solutions for its fleet, without any compromise in flight safety,"
said Senior VP He of Air China. "The partnership with CFM can help
both stakeholders to continuously increase their competitiveness
globally with their advantages, and to provide the best service for
Chinese and worldwide customers."
"This new venture is a perfect example of the type of win-win
solutions that airlines and OEMs can implement together," said Eric
Bachelet, President and CEO of CFM International. "The combination
of Air China's extensive expertise with that of CFM will enable
SSAMC to develop and grow to the best level of performance, in
terms of quality, turnaround time, EGT margin, and cost."
Air China is the Chinese national flag carrier and has been a
long-time CFM customer. In the last several years, the airline has
grown and expanded its reach to become one of the leading airlines
in the country. In addition to the 20 A320 orders formalized at the
Zhuhai Air Show, the airline's current fleet includes 55 Airbus
A320 and 118 Boeing 737 family aircraft powered by CFM56-5B and
CFM56-3/-7B engines, respectively, as well as six long-range,
four-engine Airbus A340-300 aircraft powered by the CFM56-5C.