ST Aerospace and AirAsia Bhd have signed a 10-year agreement for component repair management maintenance-by-the-hour (MBH) for the low-cost airline's Airbus A320 aircraft.

In a joint announcement today, ST Aerospace and AirAsia Bhd said the agreement is worth approximately US$80 million (US$1 = RM3.19).

ST Aerospace is currently supporting AirAsia on an existing MBH programme for 100 A320 aircraft. With this contract, ST Aerospace, will effectively support 175 of AirAsia's A320 aircraft.

AirAsia Chief Executive Officer Tan Sri Tony Fernandes said through high aircraft utilisation and paramount importance placed on flight safety and quick turnaround time, the low-cost carrier has managed to achieve high efficiency in operations to keep costs low.

Meanwhile, ST Aerospace President Chang Cheow Teck said the company is honoured to further its partnership with AirAsia. He added that the contract marks a 10-year partnership between St Aerospace and AirAsia.

ST Aerospace first provided AirAsia's fleet of five Boeing 737-300 aircraft with component rotable management and support services in 2002. -- Bernama

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AirAsia, ST Aerospace ink maintenance pact