AFI KLM E&M Builds Southeast Asia Component Business

European MRO provider AFI KLM E&M plans to boost its footprint in Southeast Asia following a 10-year extension of a component support deal with one of the region’s biggest carriers, Cebu Pacific from the Philippines.

The Franco-Dutch maintenance company said it would accelerate the development of its warehouse and MRO shop in Singapore, which complements its component service center in Kuala Lumpur, Malaysia.

Under its recently extended Cebu contract, AFI KLM E&M will provide MRO services for the airline’s Airbus A320 and A320neo family fleets, which is set to grow further following a recent order for 102 A320neo-family aircraft plus 50 options.

Cebu will also use AFI’s Prognos predictive maintenance system for its components and APUs.

Despite Southeast Asia recovering slower than many other regions from the pandemic, Cebu is already 30% bigger than it was in 2019 and plans to grow beyond 100 aircraft by the end of the year.

And although the Pratt & Whitney geared turbofan (GTF) has caused challenges for its A320neo operations, Cebu has invested heavily in spare engines to keep its fleet operational. The LCC’s CEO recently told a conference that a 25% spare engine ratio was the new normal following ratios of about 10% for previous generation engines.

The airline has also been helped by a diversified fleet, operating A330, A320 and ATR aircraft. While this is somewhat unusual for an LCC, an island network with small airports plus a few very congested hubs like Manila mean it sees the benefits of turboprop and widebody aircraft as well.