Spirit AeroSystems Announces Repair Center Agreement with GAMECO

Rhea-AI Summary

Spirit AeroSystems has officially entered a partnership with Guangzhou Aircraft Maintenance Engineering Company (GAMECO) to establish an Authorized Repair Center in Mainland China. This collaboration aims to provide local air carriers with reduced freight costs and less aircraft downtime. Initial services focus on the repair of Boeing 757 and A330 inlet cowlings, with plans for future expansions. Spirit's Aftermarket business has seen growth from $186 million in 2019 to $239.9 million in 2021, aiming for $500 million by 2025.

Positive

• Agreement with GAMECO enhances operational efficiency in Mainland China.
• Reduced freight costs and downtime for air carriers.
• Aftermarket revenue growth from $186 million in 2019 to $239.9 million in 2021.
• Targeting $500 million in Aftermarket revenue by 2025.

Negative

• None.

GUANGZHOU, China--(BUSINESS WIRE)-- Spirit AeroSystems, Inc. announced today an agreement with Guangzhou Aircraft Maintenance Engineering Company Limited (GAMECO) to be the Spirit Authorized Repair Center in Mainland China.

GAMECO was founded in 1989 as a joint venture of China Southern Airlines, Hutchison A/C Maintenance Investment and South China International A/C Engineering.

“Spirit AeroSystems is pleased to work with GAMECO to offer Mainland China air carriers with local, in-country service that will reduce freight costs and overall aircraft downtime,” said Kailash Krishnaswamy, Senior Vice President of Spirit Aftermarket Services. “Through this agreement, GAMECO will expand its offerings to its customer by leveraging Spirit’s component repair expertise.”

Initially, GAMECO will provide repair services to replace Boeing 757 RB211 inlet cowlings and A330 Trent inlet cowlings with plans to expand into nacelle work for Spirit customers.

Spirit has signed agreements with two freight carriers to place 757 inlet cowling work with GAMECO. In February, Spirit signed a contract with YTO Cargo Airlines (YTO), based in Hangzhou, China; and in September 2021, Spirit signed a 10-year agreement with SF Airlines (SFA), a cargo carrier based in Shenzhen, China.

Spirit’s Aftermarket business continues to grow since the acquisition of select Bombardier maintenance, repair and overhaul operations in Belfast, Northern Ireland, and Dallas, Texas; the acquisition of assets from Applied Aerodynamics in Dallas, Texas, USA; and the signing of a joint venture agreement with Evergreen Aviation Technologies Corporation in Taiwan. Spirit’s Aftermarket business revenues have grown substantially from $186 million in 2019 to $239.9 million in 2021, and is targeting to grow the Aftermarket business to $500 million in revenue by 2025.

Spirit AeroSystems, Inc. ("Spirit"), is a subsidiary of Spirit AeroSystems Holdings, Inc. [NYSE: SPR] (“Spirit AeroSystems”).

On the web: www.spiritaero.com
On Twitter: @SpiritAero

About Spirit AeroSystems Inc.

Spirit AeroSystems is one of the world's largest manufacturers of aerostructures for commercial airplanes, defense platforms, and business/regional jets. With expertise in aluminum and advanced composite manufacturing solutions, the company's core products include fuselages, integrated wings and wing components, pylons, and nacelles. We are leveraging decades of design and manufacturing expertise to be the most innovative and reliable supplier of military aerostructures, and specialty high-temperature materials, enabling warfighters to execute complex, critical missions. Spirit also serves the aftermarket for commercial and business/regional jets. Headquartered in Wichita, Kansas, Spirit has facilities in the U.S., U.K., France, Malaysia and Morocco. More information is available at www.spiritaero.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking statements" that may involve many risks and uncertainties. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "aim," "anticipate," "believe," "could," "continue," "estimate," "expect," "goal," "forecast," "intend," "may," "might," "objective," "outlook," "plan," "predict," "project," "should," "target," "will," "would," and other similar words, or phrases, or the negative thereof, unless the context requires otherwise. These statements reflect management's current views with respect to future events and are subject to risks and uncertainties, both known and unknown. Our actual results may vary materially from those anticipated in forward-looking statements. We caution investors not to place undue reliance on any forward-looking statements. Important factors that could cause actual results to differ materially from those reflected in such forward-looking statements and that should be considered in evaluating our outlook include, without limitation, the impact of the COVID-19 pandemic on our business and operations; the timing and conditions surrounding the full worldwide return to service (including receiving the remaining regulatory approvals) of the B737 MAX, future demand for the aircraft, and any residual impacts of the B737 MAX grounding on production rates for the aircraft; our reliance on Boeing for a significant portion of our revenues; our ability to execute our growth strategy, including our ability to complete and integrate acquisitions; our ability to accurately estimate and manage performance, cost, and revenue under our contracts; demand for our products and services and the effect of economic or geopolitical conditions in the industries and markets in which we operate in the U.S. and globally; our ability to manage our liquidity, borrow additional funds or refinance debt; and other factors disclosed in our filings with the Securities and Exchange Commission. These factors are not exhaustive and it is not possible for us to predict all factors that could cause actual results to differ materially from those reflected in our forward-looking statements. These factors speak only as of the date hereof, and new factors may emerge or changes to the foregoing factors may occur that could impact our business. Except to the extent required by law, we undertake no obligation to, and expressly disclaim any obligation to, publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220426005161/en/

Media:

Forrest Gossett

(316) 803-2975

forrest.s.gossett@spiritaero.com

Investor Relations:

Aaron Hunt

(316) 523-7040

investorrelations@spiritaero.com

Source: Spirit AeroSystems, Inc.

FAQ

What is the purpose of Spirit AeroSystems' agreement with GAMECO?

The agreement aims to establish an Authorized Repair Center in Mainland China, providing local air carriers with efficient repair services.

What services will GAMECO provide under the Spirit AeroSystems partnership?

Initially, GAMECO will offer repair services for Boeing 757 and A330 inlet cowlings.

How has Spirit AeroSystems' Aftermarket business revenue changed over the years?

Spirit's Aftermarket revenue increased from $186 million in 2019 to $239.9 million in 2021.

What is Spirit AeroSystems' revenue target for the Aftermarket business by 2025?

Spirit aims to reach $500 million in Aftermarket revenue by 2025.