14-Mar-2018 12:45 PM

Korea Aerospace Industries to lead eight company investment in commercial MRO segment

South Korea's MOLIT stated (13-Mar-2018) eight companies, led by Korea Aerospace Industries (KAI), signed a MoU to establish an MRO business in South Gyeongsang province. Joining KAI in establishing the MRO company will be the Korea Airport Corporation (KAC), JEJU air, Eastar Jet, Unical Aviation, BNK Financial Group, Hizeaero and A-Tech. The new company will have KRW135 billion (USD127 million) as its initial capital and KAI will be the largest shareholder with a 65.5% stake, followed by KAC with 19.9%. KAI stated the MRO subsidiary will be launched in Jul-2018 and is currently in the process of obtaining an Approved Maintenance Organisation certificate from South Korea's MOLIT, before starting operations by the end of 2018 for domestic carriers. KAC estimates that by 2026 the MRO company will create around 20,000 new jobs and generate KRW5.4 trillion (USD5 billion) in revenue. South Korea's Government earlier approved KAI's business plan for the unit in Dec-2017, after an evaluation committee found that the company had sufficient infrastructure to establish the state sponsored MRO business. [more - original PR - Korean]

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