Zurich, SR Technics,  Mubadala Aerospace MRO network and Finnair have signed an agreement for engine and component services. The deal follows a memorandum of understanding signed by the two companies on April 11, 2012.

Finnair will source all engine services for its A320 and A340 aircraft and component services for its Airbus and Embraer fleet from SR Technics. The work will start in July 2012 for engine services and in September 2012 for component services. As a part of the agreement, SR Technics’ affiliate will also acquire related tangible assets and inventories from Finnair. Finnair expects the cooperation to result in significant cost savings for the company.

Ville Iho, Finnair chief operating officer said, “This agreement with SR Technics is a natural next step for us as we increasingly focus on our core activities as an airline. With this cooperation we can clearly improve the cost efficiency of our engine and component services, while maintaining high quality. This arrangement will also release capital previously tied to component services for use in our core business.”

André Wall, SR Technics' President, “This exclusive cooperation with Finnair is a cornerstone deal for SR Technics.

“The agreement marks the beginning of a close strategic partnership, in which our focus is to build long-term customer relationships and to provide true value-added services. We see this also as a confirmation of our approach to find solutions to enable airlines to operate in the most cost-efficient way and fully concentrate on their core business.”

Comprehensive maintenance and financing services

Finnair will source all CFM56 engine maintenance and the component services for its entire Airbus and Embraer fleet exclusively from SR Technics, and will be delivered by SR Technics’ Centers of Excellence in Zurich, Switzerland. The agreement includes a comprehensive financing solution for in- scope and surplus spares from Finnair. This service will be provided through Sanad Aero Solutions, a provider of leasing and management of spare components and engines to the global airline industry.

Troy Lambeth, Sanad Aero Solutions' chief executive officer added, “Through our innovative financing offering combined with a tailor-made inventory solution for their spare parts, we can support Finnair in their fleet management and at the same time monetize non-core assets of the airline.”