Spirit AeroSystems, Malaysia Airlines Berhad sign Memorandum of Understanding to create MRO services for 737NG

Rhea-AI Summary

Spirit AeroSystems, Inc. (NYSE: SPR) announced a Memorandum of Understanding with Malaysia Airlines Berhad to develop maintenance, repair, and overhaul (MRO) services for the 737 Next Generation Aircraft. The partnership aims to establish repair services for nacelle and flight control surfaces, targeting completion before the end of 2022. Spirit's Aftermarket business has shown growth, with revenues increasing from $186 million in 2019 to $239.9 million in 2021. The company aims to further grow this business to $500 million by 2025.

Positive

• Partnership with Malaysia Airlines to develop MRO services for 737 Next Generation Aircraft.
• Aftermarket business revenues grew from $186 million in 2019 to $239.9 million in 2021.
• Targeting $500 million in Aftermarket business revenue by 2025.

Negative

• None.

WICHITA, Kan.--(BUSINESS WIRE)-- Spirit AeroSystems, Inc. [NYSE – SPR] announced today at MRO Asia-Pacific in Singapore a Memorandum of Understanding (MOU) with Malaysia Airlines Berhad (MAB) to develop maintenance, repair and overhaul (MRO) services for the 737 Next Generation Aircraft.

Under the terms of the agreement, Spirit and MAB will start to jointly work on establishing repair services for nacelle and flight control surfaces to support the airline’s fleet and the planes of other operators before the end of 2022.

“This is an important development as Spirit Aftermarket Services continues to expand service offerings to the important Asia-Pacific market,” said Kailash Krishnaswamy, Senior Vice President of Aftermarket Services for Spirit.

Krishnaswamy said Spirit’s Aftermarket business continues to grow since the 2021 acquisition of select Bombardier maintenance, repair and overhaul operations in Belfast, Northern Ireland, and Casablanca, Morocco; the acquisition of assets from Applied Aerodynamics in Dallas, Texas, USA; and the SEAS joint venture. Spirit’s Aftermarket business revenues have grown from $186 million in 2019 to $239.9 million in 2021. Spirit is targeting to grow the Aftermarket business to $500 million in revenue by 2025.

Ahmad Luqman Mohd Azmi, Group Chief Operations Officer of MAB, said, “We are delighted to fortify our partnership with global players within the aviation landscape, especially in leveraging the capabilities of MAB Engineering’s expertise in providing reliable and high-quality MRO services that prioritises safety. This is in line with our Long-Term Business Plan 2.0 aspirations of becoming Asia’s leading travel and aviation services provider which will further accelerate the growth of our MRO services and capabilities within the region.”

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. Also, Spirit 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.

About Malaysia Airlines

Since September 2015, the airline has been owned and operated by Malaysia Airlines Berhad. It is part of the Malaysia Aviation Group (MAG), a global aviation organisation that comprises of different aviation business and lifestyle travel solution portfolios aimed at serving global air travel needs. The airline is committed to facilitating safe and seamless travels by placing safety and hygiene as the anchor across all end-to-end consumer touchpoints in line with its MHFlySafe initiative. Via its alliance with oneworld®, Malaysia Airlines offers superior connectivity to more than 900 destinations in 170 territories across the globe. For more information, please visit www.malaysiaairlines.com and download the Malaysia Airlines app to get the latest promotions conveniently at your fingertips.

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.

Spirit is not responsible for the accuracy or completeness of third-party statements expressed herein or through external website or other references. These are for general information purposes only.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220921005139/en/

Investor Relations:

Aaron Hunt

(316) 523-7040

investorrelations@spiritaero.com

Media:

Forrest Gossett

(316) 803-2975

forrest.s.gossett@spiritaero.com

Source: Spirit AeroSystems, Inc.

FAQ

What is the recent announcement by Spirit AeroSystems regarding Malaysia Airlines?

Spirit AeroSystems announced a Memorandum of Understanding with Malaysia Airlines to develop MRO services for the 737 Next Generation Aircraft.

What are the financial goals for Spirit AeroSystems' Aftermarket business?

Spirit AeroSystems aims to grow its Aftermarket business revenues from $239.9 million in 2021 to $500 million by 2025.

What services will be developed as part of the MOU between Spirit AeroSystems and Malaysia Airlines?

The MOU focuses on developing maintenance, repair, and overhaul services specifically for nacelle and flight control surfaces.

When is the MRO services project expected to start?

The development of MRO services is targeted to begin before the end of 2022.

How much did Spirit AeroSystems' Aftermarket revenue grow from 2019 to 2021?

The Aftermarket business revenues grew from $186 million in 2019 to $239.9 million in 2021.