easyJet and SR Technics sign USD 1.6bn landmark maintenance agreement for Airbus fleet

SR Technics, a leading global provider of Maintenance, Repair and Overhaul (MRO) and easyJet signed an agreement for an 11-year renewal and extension of their maintenance cooperation. This landmark contract, offering a revenue potential of USD 1.6bn, secures easyJet as a cornerstone customer for SR Technics. easyJet is to become the first base load customer at SR Technics’ new maintenance facility located in Malta.

The new contract will see SR Technics deliver an industry-leading cost base for easyJet’s Airbus family. With a fleet of 157 Airbus aircraft, growing to 207 by 2012, it is vital for easyJet to continue reducing its maintenance cost through this landmark deal.

SR Technics will continue to provide a wide range of MRO services including line maintenance through its Europe-wide station network, light maintenance (E-Checks), base maintenance (IL-Checks) as well as component repair and overhaul. In addition, the contract will include the provision of consumables and expendables, logistic services and additional engineering services such as Part 21 Design Engineering and ACARS Data Management.

The agreement includes the development of joint continuous improvement activities to drive operational quality and achieve further cost effectiveness on a long-term basis.

The new contract will run until 2020 and reinforces the long standing partnership between the two companies. SR Technics has been providing full support to easyJet’s Airbus fleet since 2005. This new contract will ensure that easyJet’s further development plans are supported through extensive maintenance services at the highest quality levels and in the most cost effective manner. The size and scope of the new contract makes it a landmark agreement in the global MRO sector.

Bernd Kessler, CEO of SR Technics said: “This agreement is a milestone for the SR Technics Group. We are very proud that easyJet has selected us to be their main technical services partner for the next 11 years. This is an enormous sign of trust.

easyJet is a leading airline with strong growth ambitions and demands the highest quality for its fleet maintenance. We will contribute to easyJet’s long-term growth and ongoing success by providing outstanding levels of safety, quality, reliability and aircraft availability.”

Cor Vrieswijk, Operations Director of easyJet said: “We are delighted to extend our partnership with SR Technics. Together we will be leading the industry in setting standards in terms of safety, quality and efficiency. Our new maintenance agreement and SR Technics’ new facility in Malta will ensure the highest standards and an industry-leading cost base for easyJet’s Airbus fleet, which will grow to 207 aircraft by 2012.”

As part of the agreement between the two companies, easyJet will become the first base load customer at SR Technics’ new maintenance facility in Malta. SR Technics will perform maintenance tasks for easyJet’s Airbus A319 aircraft in Malta commencing in the third quarter 2010. (Please see today’s related press release “SR Technics to open maintenance facility in Malta”) At the new facility in Malta, SR Technics will provide easyJet with its world-class service at a highly attractive cost base.

Also, through continuous improvements in service delivery and efficiency levels, particularly on its industry-leading E- and ILCheck offerings, SR Technics is delivering maintenance checks up to 30 percent faster than standard checks. With these operational and commercial benefits easyJet can benefit from increased aircraft availability and generate greater revenue at significantly lower cost.

(c) Centre for Asia Pacific Aviation. Date posted: 18-Nov-09