Singapore Technologies Aerospace Ltd (ST Aerospace), and IBERIA Maintenance, the technical division of IBERIA Airlines of Spain, have signed a joint venture agreement to set up a landing gear repair and overhaul company in Madrid, Spain. The joint venture company, Madrid Aerospace Services S.L., will be equally owned (50:50) between IBERIA and ST Aerospace, and will be an associated company of ST Aerospace. The initial investment is expected to be around $6m.

This investment is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.

Managed by ST Aerospace, the company will operate as an independent third party maintenance, repair and overhaul (MRO) service provider with an initial focus on Airbus A320, A330 and A340 landing gears. It will provide maintenance services for IBERIA Airlines and other customers around the world, and will complement ST Aerospace’s Total Aviation Support and IBERIA maintenance offerings for Airbus operators. It is expected to commence operations by the second half of 2008.

IBERIA Airlines is Spain’s leading airline and also leader on routes linking Europe with Latin America. It posted an operating income of about 5.4 billion euros, net earnings of 116.1 million euros and an Ebitdar of 790.5 million euros in 2006. It is also distinguished by its commitment to socially and environmentally responsible conduct. Along with its franchise partner Iberia Regional, Iberia operates some 1,000 flights each day to about 100 different destinations. Last year, Iberia carried a total of 33 million passengers and posted its 12th consecutive year of benefits. It is a member of the oneworld airline alliance, along with American Airlines, British Airways, Cathay Pacific, Finnair, JAL, LAN, Malev, Qantas and Royal Jordanian.

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