Air China and CFM Finalize Engine MRO Joint Venture

 - December 22, 2010, 8:33 AM

In early 2007, Air China and CFM International agreed to establish a maintenance, repair and overhaul (MRO) joint venture. After three years of 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. 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 service, which already provides aircraft maintenance, repair and overhaul. “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 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.”