Fernandes said he expects ADE to contribute profits of between 30 and 40 per cent to Capital A in the next four to five years.
Kuala Lumpur: Asia Digital Engineering (ADE), the engineering and maintenance subsidiary of Capital A Bhd, has secured a US$100 million (US$1=RM4.460) 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 (CEO) Tan Sri Tony Fernandes said the investment will also be allocated for ADE’s further business expansion in other verticals and geographical markets.
ADVERTISEMENT
He said the first phase of the maintenance hangar would be completed by the second quarter of 2024 (2Q 2024) and the second phase would be ready by 3Q 2024.
“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 at a press conference after the signing ceremony between ADE and OCP Asia here Wednesday.
The ceremony was witnessed by Minister of Investment, Trade and Industry (Miti) Tengku Datuk Seri Zafrul Abdul Aziz.
Fernandes said he expects ADE to contribute profits of between 30 and 40 per cent to Capital A in the next four to five years.
ADVERTISEMENT
“The US$100 million 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 (MRO) service providers in the region.
ADVERTISEMENT
“We are looking at 70 per cent of aircraft services from AirAsia and 30 per cent from non-AirAsia airlines, including Airbus and Boeing aircraft,” he said.
Founded in 2020, ADE offers aircraft services such as line maintenance, base maintenance, component repair and overhaul, warehouse management, technical and design organisation services along with digitally driven engineering solutions and engineering support services.
Stay up-to-date by following Daily Express’s Telegram channel.
* Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss.* Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
