The Middle East's largest Maintenance Repair & Overhaul (MRO) facility.
To be open for business at end of 2016.
Jeddah’s King Abdulaziz International Airport
The huge facility (some 900,000 sq m in size) is already around 60% complete (as of November 2015), on a site northeast of Jeddah’s King Abdulaziz International Airport.
November 2015: News Item A-1: "Middle East Region’s Biggest Maintenance Repair & Overhaul (MRO) Base Due to open in 2016" by (ATW) Alan Dron, November 10, 2015.
What was described as the Middle East’s largest (MRO) facility, should be open for business by the end of 2016, Saudi Aerospace Engineering Industries (SAEI) (SAU) stated at the Dubai Air Show.
The huge facility (some 900,000 sq m in size) is already around 60% complete, on a site northeast of Jeddah’s King Abdulaziz International Airport.
It will include four narrow body and four wide body hangars capable of conducting "D" checks, plus one paint hangar and another for wide body line maintenance.
An engine shop will be capable of handling General Electric (GE) (GE90)-size power plants, and there will be 24 shops for aircraft component maintenance.
“It’s unfair to call it a launch, more like an unveiling,” (SAEI) (SAU) Managing Director, Nader Khalawi said.
Construction work has been ongoing for two years, but the project had not been widely publicized. “It was announced quietly before,” said (SAEI) (SAU)’s Director Technical Sales & Marketing, Abdulmohsen Aynousah. “We didn’t want to talk about it, until we could see it was happening.”
The infrastructure is now complete and the buildings are rapidly appearing.
The new facility will handle both civil and military work, and will cost around SR3.5 billion/$930 million.
It is a major advance for (SAEI) (SAU), which currently has a two-bay hangar and several plants scattered around Jeddah. These will all be combined at the new site. “We have developed a lot of capability over the years,” Khalawi said. “Our problem was capacity.”
He added, “We believe there’s a lot of business in both the civil and military fields. The military in Saudi Arabia is, as you know, quite extensive, and we believe there’s a big opportunity there. We’re working with major Original Equipment Manufacturer (OEM)s such as Boeing (TBC), Lockheed Martin and General Electric (GEC) to develop both civil and military capability.”
(SAEI) (SAU) has SR5.3 billion/$1.4 billion per year under contract and Saudia (SVA) is its major customer; (SAEI) (SAU) was previously the Engineering arm of Saudia (SVA), the Saudi national carrier, but was spun off a couple of years ago and privatized, with 30% of its shares now held privately.
News Item A-2: Lufthansa Technik (DLH) (LTK) and Saudia Aerospace Engineering Industries (SAEI) (SAU), the maintenance arm of Saudia (SVA), have agreed to a strategic partnership. (DLH) (LTK) will support (SAEI) with Aircraft Component Maintenance for Saudia (SVA)’s Airbus A320s and A330s and assist (SAEI) to develop Maintenance Repair & Overhaul (MRO) capabilities for Airbus (EDS) and Boeing (TBC) airplanes in Jeddah. (DLH) (LTK) will also use (SAEI) as a subcontractor for parts for which (SAEI) already has capabilities. (SAEI) has announced the launch of the largest (MRO) facility in the Middle East.
Separately, (DLH) (LTK) and Air Arabia (ABZ) signed a three-year contract for radome maintenance on A320s. Lufthansa Technic (DLH) (LTK) will also support (ABZ) with spares. And (DLH) (LTK) is now prepared for technical services on the A350XWB. A dedicated entry-into-service (EIS) team is preparing phase-in of Lufthansa (DLH)’s A350XWB, planned to arrive in November 2016.
News Item A-3: Air France Industries (AFI) - (KLM) (E&M) opened a Logistics Center in Dubai in the Jebel Ali Free Zone near the new Dubai World Central.
And Gulf Air (GUL) has extended its agreement for maintenance of (APU)s equipping six Airbus A330s with the Maintenance Repair & Overhaul (MRO). Services will be provided by (EPCOR), the (AFI) - (KLM) (E&M) subsidiary specializing in (APU)s.
In addition, Etihad Airways (EHD) has expanded its strategic cooperation with (AFI) - (KLM) (E&M) through a several-hundred-million-dollar component maintenance agreement for 33 Boeing 777s. The 10-year deal provides (EHD) and its equity partners with access to a global pool of components. (AFI) - (KLM) (E&M) and Saudia Aerospace Engineering Industries (SAU) are entering a long-term strategic partnership. (AFI) - (KLM) (E&M) will support 777 and 787 components under power-by hour and assist (SAEI) (SAU) to develop (MRO) capabilities for Airbus (EDS) and Boeing (TBC) models in Jeddah. Finally, the (MRO) will partner with software firm, Ramco Systems to set up an innovation center in Singapore.
December 2015: Saudi Arabian Engineering Company (SAEI) (SAU) has proven its capability for overhauling the (GTCP-331-500) (APU) produced by Honeywell (SGC). The Jeddah-based (MRO) overhauled and returned the (APU) to service with an unnamed airline.