Singapore Company To Provide MRO Support For A500/A700

Large aerospace manufacturers like Airbus and Boeing aren't the only ones making noise this week in Singapore. Thursday, Singapore Technologies Engineering Ltd. signed a letter of intent with Adam Aircraft, to establish a strategic partnership to address the VLJ and piston aircraft market segments.

If the partnership goes ahead, ST Engineering's aerospace arm, ST Aerospace, will provide engineering, logistics (including components), and MRO support for Adam's A500 piston inline twin (shown below) and A700 very light jet. Through its partnership with ST Aerospace, Adam hopes to lower the cost of ownership of its aircraft, and provide total aviation support for its light jet and piston aircraft.

"Being a young company, we are pleased to be associated with the world's largest third-party MRO service provider, ST Aerospace, which can provide not only first class MRO services for our customers but can also help our marketing efforts through their global footprint," said Adam Aircraft CEO Rick Adam. "With ST Aerospace as our strategic partner, we will together be able to provide a wide range and depth of expertise and capabilities to support AAI's rapid growth in North America."

The partnership will also provide ST Aerospace with the option -- exercisable within seven years -- to invest up to $50 million US in Adam Aircraft.

"AAI represents a new strategic partner and customer for ST Aerospace," said ST Engineering president and CEO TAN Pheng Hock. "In addition, it presents us with the potential to tap into an emerging and promising VLJ market and the latest composite technology. The AAI partnership builds upon our strengths in MRO, aircraft logistics and engineering and extends our range of relationships with OEMs."

Representatives with Adam and ST Aerospace report the LOI is non-binding, and subject to due diligence studies expected to be completed in 60 days.

FMI: www.adamaircraft.com, www.staero.aero