SR Technics admits to halting planned Malta expansion

SR Technics has admitted halting the planned expansion of its dedicated narrow-body airframe overhaul centre in Malta for the time being, because it was unable to attract customers in addition to the UK budget carrier EasyJet.

The admission was made public yesterday through the influential publication and website FlightGlobal, which quoted Jean-Marc Lenz, vice-president aircraft services and VIP at Zurich-based SR Technics.

“The dissolution of classic base maintenance schedules is a clear trend,” Lenz says, adding that SR Technics has had “very positive experiences” with its ‘E-check’ concept, which it developed for EasyJet.

FlightGlobal reports that the Mubadala subsidiary halted a planned expansion of its overhaul centre in Malta because it was unable to attract customers in addition to Easyjet.

The Malta operation was launched from a leased two-bay hangar in October 2010, and the intention was to build a four-bay facility by early 2012, but this was put on ice in January.

The new enterprise was launched in November 2009 by Prime Minister Lawrence Gonzi and finance minister Tonio Fenech at Castille. SR Technics anticipated that the new facility would create up to 350 jobs in Malta by 2014.

Gonzi had described the investment as “a fantastic opportunity” and said SRT’s interest in Malta formed yet another step in achieving his vision for 2015, which includes establishing Malta as “a centre of excellence for high-value added industry”. Gonzi said employment in this industry is expected to be above 1,100.

SR Technics has told FlightGlobal that it will continue training local staff in Malta, and that it cooperates with the island’s government and local partners "to win new customers and grow the business.”

FlightGlobal said that European maintenance, repair and overhaul (MRO) providers such as SR Technics, are bracing themselves to face further turbulence:

“The base maintenance business is changing...maintenance events are becoming more individualised and less predictable.

“Classic overhaul events, where the aircraft is in the hangar for typically four weeks, are becoming rare…

“Structural repairs on aging airframes can turn out to be more extensive than initially anticipated, increasing costs for plane owners.”

Mubadala Development is the investment arm of the Abu Dhabi government, which purchased the stake held by Istithmar – Dubai’s investment arm – in SR Technics Group, a Swiss provider of technical services for the aviation industry.

Dubai Aerospace, along with Mubadala and Istithmar, bought 90% of the Swiss company for €950 million in 2006, as part of a United Arab Emirates plan to build a domestic aerospace industry.