Lion Air builds large maintenance center off Singapore

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A Lion Air airplane takes off at Soekarno-Hatta airport in JakartaFast-growing Indonesian budget carrier Lion Air has said it will build a $250 million aircraft maintenance facility on Batam island, just 20 kilometers from Singapore, not only for its own aircraft but also to eventually grab some of the city-state’s bustling business for repairing planes.

The carrier will spend $250 million to build its second maintenance hub as it takes delivery of more than 500 jets from Airbus and Boeing. The facility will be completed by the end of 2016, Lion Air said on August 29.

Lion Airs aircraft are currently serviced from one hangar in Surabaya in east Java. The facility at Batam will have 4 wide body hangars, of which 2 will be completed in 2013 and the rest by the end of June 2014, said Romdani Adali Adang, the president of Lion Technic, a unit of Lion Group. The facility will have both airframe and engine maintenance, repair and overhaul capabilities, he added.

The proximity to Singapore means Lion’s maintenance hub can tap Singapore’s logistics network, facilitating access to spare parts and components – for a cheaper price. Lion Technic, which has a staff strength of 2,500, will employ 2,000 additional staff at the facility by end-2016.

In a bid to cater to international airlines, Lion has built the facility to conform to the standards set by the European Aviation Safety Agency and is also trying to get an international certification from the EASA, without which it can’t provide services to foreign carriers.

Singapore has over a 100 aerospace companies and claims to account for a quarter of the total maintenance, repair and overhaul business in Asia. The island nation’s aerospace industry produced $6.8 billion in output in 2012 and employed nearly 20,000 people, mostly skilled workers, according to Singapore’s Economic Board.

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Reading Time: 2 minutes

Fast-growing Indonesian budget carrier Lion Air has said it will build a $250 million aircraft maintenance facility on Batam island, just 20 kilometers from Singapore, not only for its own aircraft but also to eventually grab some of the city-state’s bustling business for repairing planes.

Reading Time: 2 minutes

A Lion Air airplane takes off at Soekarno-Hatta airport in JakartaFast-growing Indonesian budget carrier Lion Air has said it will build a $250 million aircraft maintenance facility on Batam island, just 20 kilometers from Singapore, not only for its own aircraft but also to eventually grab some of the city-state’s bustling business for repairing planes.

The carrier will spend $250 million to build its second maintenance hub as it takes delivery of more than 500 jets from Airbus and Boeing. The facility will be completed by the end of 2016, Lion Air said on August 29.

Lion Airs aircraft are currently serviced from one hangar in Surabaya in east Java. The facility at Batam will have 4 wide body hangars, of which 2 will be completed in 2013 and the rest by the end of June 2014, said Romdani Adali Adang, the president of Lion Technic, a unit of Lion Group. The facility will have both airframe and engine maintenance, repair and overhaul capabilities, he added.

The proximity to Singapore means Lion’s maintenance hub can tap Singapore’s logistics network, facilitating access to spare parts and components – for a cheaper price. Lion Technic, which has a staff strength of 2,500, will employ 2,000 additional staff at the facility by end-2016.

In a bid to cater to international airlines, Lion has built the facility to conform to the standards set by the European Aviation Safety Agency and is also trying to get an international certification from the EASA, without which it can’t provide services to foreign carriers.

Singapore has over a 100 aerospace companies and claims to account for a quarter of the total maintenance, repair and overhaul business in Asia. The island nation’s aerospace industry produced $6.8 billion in output in 2012 and employed nearly 20,000 people, mostly skilled workers, according to Singapore’s Economic Board.

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