MRO & Manufacturing
AAR CORP. and AFI KLM E&M Launch xcelle Asia MRO JV in Thailand
AAR CORP. and AFI KLM E&M finalize joint venture xcelle Asia, an FAA and EASA-certified nacelle MRO facility in Chonburi, Thailand.
This article is based on an official press release from AAR CORP. and AFI KLM E&M.
AAR CORP. (NYSE: AIR) and Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) have officially announced the completion of their joint venture, xcelle Asia. According to a joint press release issued on December 10, 2025, the new entity is headquartered in Chonburi, Thailand, and is fully dedicated to the maintenance, repair, and overhaul (MRO) of aircraft nacelles for next-generation fleets.
The formation of xcelle Asia marks a significant expansion of the partnership between the two aviation heavyweights, extending their collaboration from the Americas into the high-growth Asia-Pacific (APAC) region. The facility leverages AAR’s existing component services footprint in Thailand while integrating AFI KLM E&M’s technical expertise as an airline-affiliated MRO provider.
The primary mission of xcelle Asia is to support the aerodynamic casings, known as nacelles, for modern aircraft engines. According to the announcement, the facility is already operational as an FAA and EASA-certified repair station, ensuring it meets rigorous global safety standards immediately upon launch.
The joint venture focuses specifically on platforms that power the industry’s newest widebody and narrowbody aircraft. The facility is equipped to handle:
Services offered at the Chonburi site include on-wing and on-site inspections, rotable asset support, and comprehensive repair and overhaul operations. By locating these capabilities in Thailand, the partners aim to significantly reduce turnaround times and logistics costs for Asian carriers, who previously may have had to ship large nacelle components to the US or Europe for specialized repair.
This development is the latest step in a broader strategy to globalize the “xcelle” MRO brand. The partnership builds upon the model established by xcelle Americas, a joint venture originally formed in 2021 between AFI KLM E&M and Triumph Group’s Product Support business.
AAR CORP. stepped into this partnership following its 2024 acquisition of Triumph Group’s Product Support division. Consequently, AAR inherited the relationship and has now worked with AFI KLM E&M to replicate the model in Asia. While xcelle Americas services similar platforms from its base in Hot Springs, Arkansas, xcelle Asia is designed to capture the demand in the Eastern Hemisphere.
In a statement regarding the launch, Jim Berberet, Senior Vice President of Component Services at AAR, highlighted the continuity of their strategy: “This joint venture markedly expands our service offerings in the Asia-Pacific region and furthers our ability to deliver high quality, industry leading solutions to our customers. We are looking forward to replicating our current success in the Americas…”
, Jim Berberet, SVP of Component Services, AAR
Benjamin Moreau, SVP Strategy & Business Development at AFI KLM E&M, echoed these sentiments, emphasizing the logistical advantages of the new location:
“The creation of xCelle Asia represents a major step forward in strengthening our global MRO network. By expanding our nacelle capabilities into the Asia-Pacific region, we are positioning ourselves to deliver world-class, next-generation support closer to our customers.”
, Benjamin Moreau, SVP Strategy & Business Development, AFI KLM E&M
The decision to establish a dedicated nacelle facility in Thailand aligns with broader market data regarding the trajectory of global aviation. The Asia-Pacific region is widely projected to lead global fleet growth over the next decade.
According to market research compiled in relation to this launch, the APAC MRO market is projected to grow at a compound annual growth rate (CAGR) of approximately 5% to 6.5% through the early 2030s. This growth is driven largely by fleet modernization, with carriers in the region heavily investing in the A320neo, 737 MAX, and 787 platforms, precisely the aircraft xcelle Asia is certified to support.
By entering the Thailand corridor, xcelle Asia places itself in a competitive but lucrative hub. The region is already home to major MRO players such as HAECO, ST Engineering, and Lufthansa Technik. However, xcelle Asia appears to be differentiating itself through a specialized focus on high-tech composite nacelle repairs for new-generation engines, rather than general airframe maintenance.
Where is xcelle Asia located? What engines does the facility support? Is the facility certified? Who owns xcelle Asia?
AAR CORP. and AFI KLM E&M Finalize “xcelle Asia” Joint Venture in Thailand
Operational Capabilities and Scope
Strategic Context: Expanding the “xcelle” Brand
AirPro News Analysis: The APAC Market Opportunity
Frequently Asked Questions
The facility is located in Chonburi, Thailand, utilizing AAR’s existing component services infrastructure.
The JV supports nacelles for the GE GEnx, Rolls-Royce Trent 1000, and CFM LEAP-1A/1B engines.
Yes, the facility holds both FAA (US) and EASA (European) repair station certifications.
It is a joint venture between AAR CORP. (USA) and Air France Industries KLM Engineering & Maintenance (France/Netherlands).
Sources
Photo Credit: AAR CORP.