KUALA LUMPUR: Capital A Bhd's engineering arm Asia Digital Engineering (ADE) is eyeing for more maintenance, repair and overhaul (MRO) work from third-party airlines by 2025.
ADE has applied for approvals from international aviation regulators to be able to service various aircraft types.
Chief executive officer Mahesh Kumar said ADE is applying for approvals to service Boeing B737 MAX family aircraft, Airbus A330 family aircraft as well as A350.
"We want to add our flexibility (in terms of the type of airplanes ADE is servicing). Today's situation is such that the demand for MRO work is way higher than the supply."
"There's a huge constraint in MRO slots globally. So, getting a third-party (customer) is not an issue," he told Business Times in an interview recently.
Currently, ADE does most of its MRO works for its sister companies AirAsia and AirAsia X as well as a number of third-party airlines from different countries.
The company has certification approval to service A320, A330ceo (current engine option) and B737-NG (new generation) from aviation authorities in Malaysia, Indonesia, the Philippines, Thailand, Cambodia, Nepal and Singapore.
ADE also has the green light from the European Union Aviation Safety (EASA) Part 145 Approval which ensures that its aircraft maintenance practices meet the required safety and quality standards.
Mahesh said ADE is obtaining the approval from United States' Federal Aviation Administration (FAA).
He added that the company is also entering into partnership with several aviation original equipment manufacturers (OEMs) for its upcoming 120,000 sqft workshop near Kuala Lumpur International Airport (KLIA).
The partnership will allow ADE to do repair work for various aircraft parts, besides wheels, brakes, batteries and oxygen bottles that the company is repairing currently.
"In order to do the repair work, we need to get the OEM's approval and the authorities' approval such as the Civil Aviation Authority of Malaysia (CAAM)."
"We're going to expand the workshop business as it will reduce the outsourcing of the repair works. It will improve the turnaround time for our (AirAsia) whole ecosystem," Mahesh said.
ADE, which started in 2020 during the Covid-19 pandemic, is also expanding two of its digital businesses – Aerotrade and Elevade
Aerotrade, the first of its kind in Asia, is an aviation marketplace where airlines could buy and sell various aircraft parts in a single digital platform while Elevade is a predictive and preventive maintenance software that monitors fleet health status by managing, analysing and anticipating unexpected problems in real time.
Mahesh said the fleet data of AirAsia's airplanes for the last 20 years were compiled and analysed to develop their own algorithm of the fleet data.
"Even before the aircraft comes for check, we know exactly the history of the aircraft – what parts have been replaced or serviced, what needs to be done, what are the issues. That helps us a lot in terms of planning and preparing so we could reduce our turnaround time," he said.
He added that ADE is currently performing on-trial Elevade service with non-AirAsia airlines as the predictive and preventive aircraft maintenance data are becoming highly in demand for many carriers globally.
As for Aerotrade, Mahesh said the service is becoming popular amongst non-Malaysian carriers. As of today, the non-ADE inventory in terms of volume and value is higher than ADE's own inventory.
Some of Aerotrades members are Starlux Airlines Co. Ltd, Singapore Airlines, Collins Aerospace System, Etihad Engineering, TransNusa, Air India, Thai Airways, VietJet Air, Air France and Jazeera Airways.
"We're getting so much of interest because it makes life easy for aircraft engineers to source the parts. Some of the parts are not available in Malaysia but it is on our platform," Mahesh said, adding that ADE aims to become a one-stop centre for airlines worldwide.
He's also excited about the future aircraft MRO business as ADE moves to its US$50 million (RM217.45 million) newly-built hangar at KLIA in August.
The funding was part of the US$100 million investment that ADE secured in 2023 from OCP Asia Ltd to build a 14-line aircraft maintenance facility in Sepang.
ADE currently has six lines in the new hangar where it can park either six narrowbody or two widebody aircraft.
By October, the new hangar will see an additional eight lines making the total lines in the new hangar to 14.
ADE also has another two lines in its hangar in Johor Bahru.
Mahesh said ADE has confirmed with Malaysia Airports Holdings Bhd (MAHB) of the company's additional five acres (217,800 sqft) of land in KLIA, just next to its new hangar where it plans to build an additional four lines.
He said the construction of the additional lines would be by year-end.
"If we start (the construction) by end of this year, hopefully by mid-2026 that will be ready. We're also speaking to MAHB for an additional 20 acres (of land) (871,200 sqft) in KLIA," Mahesh said, adding that ADE's new hangar has an integration of the whole MRO system in terms of spare and predictive maintenance to increase productivity and efficiency of its work.