Malaysia’s AirAsia Group Establishes Subsidiary for MRO Operations

Oct 2020

Malaysia’s low-cost airline AirAsia Group Bhd has set up a new wholly-owned subsidiary called Asia Digital Engineering (ADE) to be Asia’s leading engineering services providers for the region’s commercial airlines.

Operationally, ADE will serve all of AirAsia’s community airlines and third-party airlines in the region as a centralized and independent maintenance, repair & overhaul (MRO) unit focusing on core services such as line maintenance, workshop, technical support, components, and warehouse, as well as digital and innovation. It will provide an opportunity for the Group to gain additional revenues.

Group CEO Tony Fernandes emphasized that ADE will expand the airline’s existing expertise in aircraft engineering and is well placed to become Asia’s leading data and technology-driven MRO service provider for all commercial airlines in the region. It will also leverage off AirAsia’s combined 19 years of experience in operating and maintaining a large fleet of over 250 Airbus A320 and A330 family aircraft. All AirAsia engineers and MRO assets will be consolidated to provide a centralized technical support service.

The unit will be part of AirAsia’s Industry 4.0 digital transformation framework, which aims to leverage the latest technologies in automation, big data analytics, predictive maintenance, machine learning, and artificial intelligence. The significant innovation will effectively reduce maintenance costs and improve productivity and efficiency while maintaining a high level of safety, quality, and airworthiness of the fleet.

Malaysian Transport Minister Wee Ka Siong commented that this achievement by AirAsia will boost the government’s aspiration to promote the growth of aviation support services in Malaysia.

(Sources: Air Asia, Malay Mail)

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