Fernandes said the investment will also be allocated for ADE’s further business expansion in other verticals and geographical markets. — Reuters
KUALA LUMPUR: Asia Digital Engineering (ADE), the engineering and maintenance subsidiary of Capital A Bhd
, has secured a US$100mil (RM446mil) investment from OCP Asia Ltd to construct and operate a state-of-the-art 14-line aircraft maintenance hangar facility in Sepang, Selangor.
Capital A chief executive officer Tan Sri Tony Fernandes said the investment will also be allocated for ADE’s further business expansion in other verticals and geographical markets.
He said the first phase of the maintenance hangar would be completed by the second quarter of 2024 (2Q24) and the second phase would be ready by 3Q24.
“In terms of size, 14 lines mean 14 planes could be repaired at any one time and we looking into growing 20 lines within three years,” he said after the signing ceremony between ADE and OCP Asia yesterday.
The ceremony was witnessed by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
Fernandes said he expects ADE to contribute profits of between 30 and 40% to Capital A in the next four to five years.
“The US$100mil (RM446mil) will give us the ability to expand into 20 lines and we will cater services from most of the airlines around the world,” he said.
Meanwhile, ADE CEO Mahesh Kumar said the investment from OCP Asia would also enable enhancements to existing facilities at core AirAsia operating hubs, making ADE one of the largest aircraft maintenance, repair and overhaul service providers in the region.
“We are looking at 70% of aircraft services from AirAsia and 30% from non-AirAsia airlines, including Airbus and Boeing aircraft,” he said.
