This article is based on an official press release from ATR.

Manufacturers and FLY91 Secure 8-Year Global Maintenance Agreement to Support Regional Growth

Regional aircraft manufacturer ATR and Indian regional carrier FLY91 have announced the signing of a comprehensive Global Maintenance Agreement (GMA). The eight-year deal, signed on January 29, 2026, covers the airline’s current fleet of four ATR 72-600 aircraft as well as two additional aircraft scheduled for Delivery in early 2026.

According to the official announcement from ATR, this agreement is designed to provide the Goa-based Startups with cost predictability and operational reliability as it scales its network across Tier-2 and Tier-3 cities in India.

Scope of the Maintenance Agreement

The newly signed GMA encompasses a wide range of technical support services intended to minimize downtime and streamline supply chain logistics. Under the terms of the contract, ATR will provide repair, overhaul, and pooling services for Line Replaceable Units (LRUs), modular components that are essential for daily flight operations. Additionally, the agreement includes specialized maintenance for the aircraft propellers and access to a shared pool of spare parts.

For a relatively new entrant like FLY91, which commenced commercial operations in March 2024, securing direct support from the Original Equipment Manufacturer (OEM) is a strategic move to mitigate the risks associated with global Supply-Chain volatility. The agreement utilizes a “standard exchange” service model, ensuring that unserviceable parts can be immediately swapped for serviceable ones to keep aircraft in the air.

Manoj Chacko, Managing Director and CEO of FLY91, emphasized the financial and operational importance of the deal in a statement provided by ATR:

As a lean and cost-focused start-up, the visibility the GMA provides on future maintenance costs is critical for us. In our environment, it’s not just about operating the right aircraft, but about ensuring they are maintained to the highest standards.

Supporting Fleet Expansion

FLY91 currently operates four ATR 72-600 turboprops, with plans to expand the fleet to six by early 2026. The Airlines focuses on connecting underserved regional routes, often operating under the Indian government’s UDAN regional connectivity scheme. By locking in maintenance costs now, the airline aims to stabilize its operating expenses before doubling down on capacity.

Stefano Marazzani, Senior Vice President of Customer Support and Services at ATR, noted that the agreement is tailored to support the airline’s ambitious growth trajectory:

The Global Maintenance Agreement delivers this value consistently, while also offering an ambitious airline like FLY91 the crucial benefit of cost visibility and control needed to scale operations smoothly.

AirPro News Analysis: The Strategic Value of OEM Support

In the high-capital environment of commercial aviation, maintenance costs are often one of the most unpredictable variables for startup carriers. By entering into a “Power by the Hour” style agreement, where costs are calculated based on flight hours rather than individual repair events, FLY91 effectively converts fixed capital expenditures into variable operating costs.

We observe that this model is becoming increasingly standard for regional operators in India. For example, Alliance Air, a state-owned regional carrier, renewed a similar five-year GMA with ATR in late 2022. For FLY91, accessing ATR’s global lease stock eliminates the need to invest heavily in its own inventory of spare parts, preserving cash flow for route expansion and operational scaling. In a market where supply chain disruptions have plagued carriers since 2023, direct access to the manufacturer’s inventory offers a significant layer of operational security.

Sources

• ATR

This article is based on an official press release from ST Engineering.

ST Engineering Launches Integrated Airframe and Nacelle MRO Centre in Singapore

ST Engineering has officially opened a new integrated airframe and nacelle Maintenance, Repair, and Overhaul (MRO) service centre in Singapore. Announced on February 2, 2026, this facility marks a significant shift in the company’s operational strategy, becoming the first location within its global network to physically combine airframe and nacelle maintenance capabilities under a single roof.

The new centre is designed to function as a “one-stop shop” for airline operators, addressing long-standing industry challenges regarding logistical complexity and aircraft downtime. By co-locating these critical maintenance services, ST Engineering aims to streamline the supply chain and offer a more unified service experience for its commercial aerospace clients.

Integrated Solutions for Faster Turnaround

Traditionally, airframe maintenance and nacelle (engine housing) repairs are often handled as separate work scopes, sometimes requiring airlines to coordinate with different vendors or transport components to specialized off-site shops. This fragmentation can lead to increased administrative overhead and longer periods where the aircraft is out of service.

According to the company’s press release, the new Singapore facility eliminates this separation. Operators can now schedule nacelle maintenance concurrently with heavy airframe checks (such as C-checks). This concurrent processing is expected to significantly reduce “turnaround time” (TAT), a critical metric for airlines focused on maximizing fleet utilization.

Streamlining the Supply Chain

Beyond speed, the integration offers logistical benefits. Consolidating these services reduces the need to ship large nacelle components to separate locations, thereby cutting freight costs and minimizing the risk of transport-related delays. The facility utilizes advanced tooling and Original Equipment Manufacturer (OEM) approved processes to ensure technical consistency across both airframe and nacelle domains.

Jeffrey Lam, President of Commercial Aerospace at ST Engineering, highlighted the strategic value of this integration in a statement:

“This integrated service centre in Singapore strengthens our global MRO network and gives customers more flexibility… By streamlining communications, maintenance scheduling and work scope management, we now offer a true one-stop experience.”

Expanding Global MRO Footprint

While ST Engineering already operates specialized nacelle facilities in Stockholm, Baltimore, and Xiamen, the Singapore centre is unique in its hybrid operational model. This development is part of a broader expansion strategy for the company within the Asia-Pacific region and globally.

Recent Strategic Developments

The launch of this integrated centre follows a series of aggressive moves by ST Engineering to bolster its aerospace capabilities. In September 2025, the company opened a new facility in Paya Lebar, Singapore, designed to double its engine maintenance capacity for CFM56 and LEAP engines. More recently, in January 2026, the company secured a five-year exclusive nacelle MRO contract with LOT Polish Airlines for their Boeing 787 fleet, underscoring its growing influence in the nacelle market.

AirPro News Analysis

The Shift Toward Vertical Integration

The establishment of this integrated centre reflects a wider trend in the MRO sector toward vertical integration. As airlines face increasing pressure to optimize costs and reduce downtime, they are moving away from fragmented vendor networks in favor of providers who can handle larger portions of the aircraft maintenance scope. By combining airframe and nacelle services in a major aviation hub like Singapore, ST Engineering is positioning itself to capture a larger share of the market by simplifying accountability and logistics for its customers.

Sources

• ST Engineering Press Release
• The Straits Times (Contextual Reference)
• Asian Aviation (Contextual Reference)

This article is based on an official press release from VSE Corporation.

VSE Corporation to Acquire Precision Aviation Group in $2 Billion Deal

VSE Corporation (NASDAQ: VSEC) has announced a definitive agreement to acquire Precision Aviation Group (PAG) for approximately $2.025 billion. The transaction, described by the company as “transformational,” aims to solidify VSE’s position as a leading independent provider of aviation aftermarket distribution and repair services. The deal is expected to close in the second quarter of 2026, subject to customary regulatory approvals.

According to the official announcement, the acquisitions will significantly expand VSE’s maintenance, repair, and overhaul (MRO) capabilities. By integrating PAG’s network, VSE projects an increase in its pro forma 2025 aviation revenue by approximately 50%, adding roughly $615 million in annualized revenue.

Transaction Structure and Financing

The total consideration for the acquisition is valued at approximately $2.025 billion. VSE Corporation outlined the financial structure of the deal, which includes a mix of cash and equity:

• Cash Consideration: Approximately $1.75 billion.
• Equity Consideration: Approximately $275 million in VSE shares issued to the seller, GenNx360 Capital Partners.
• Earnout Potential: An additional $125 million may be paid based on PAG’s adjusted EBITDA performance in 2026.

To fund the cash portion of the transaction, VSE has secured a fully committed bridge facility. The company also noted that recent equity offerings have helped strengthen its balance sheet in preparation for strategic moves of this magnitude. GenNx360 Capital Partners will retain a minority equity stake in the combined entity following the close of the transaction.

Strategic Rationale and Market Impact

VSE Corporation views this acquisition as a critical step in its multi-year strategy to become a pure-play aviation aftermarket leader. The combination of VSE and PAG will create a global network comprising approximately 60 locations. The company expects the deal to be immediately accretive to margins, projecting that the high-margin nature of PAG’s business will drive VSE’s consolidated Adjusted EBITDA margin above 20% in the coming years.

John Cuomo, President and CEO of VSE Corporation, highlighted the strategic importance of the deal in a statement:

“This acquisition represents a pivotal moment for VSE and a major milestone in our strategy to build a scaled, differentiated, higher-margin aviation aftermarket platform.”

The acquisition brings deep technical expertise in avionics, components, and accessories to VSE, complementing its existing engine support and distribution services. VSE targets over $15 million in annualized run-rate synergies, which it plans to achieve through cross-selling opportunities, insourcing repairs, and operational efficiencies.

Profile of Precision Aviation Group

Headquartered in Atlanta, Georgia, Precision Aviation Group is a prominent provider of MRO services and supply chain solutions for mission-critical aircraft. The company operates 29 repair stations and distribution facilities worldwide. PAG serves a diverse range of sectors, including commercial aviation, business and general aviation (B&GA), rotorcraft, and defense.

Pratik Rajeevan of GenNx360 Capital Partners expressed confidence in the future of the combined platform:

“Our significant equity rollover reflects our conviction in PAG’s momentum and in VSE’s ability to scale the platform.”

AirPro News Analysis

This acquisition arrives at a time when the aviation aftermarket is experiencing heightened demand due to global fleet dynamics. With delays in new aircraft deliveries from major manufacturers, airlines are operating older aircraft for longer periods. This “aging fleet” trend directly benefits MRO providers like PAG and VSE, as older airframes require more frequent maintenance and parts replacement.

Furthermore, ongoing supply chain constraints have placed a premium on available inventory. By combining VSE’s distribution capabilities with PAG’s repair stations, the merged entity is likely positioning itself to better control the supply chain and capture value from the current market scarcity. However, the significant cash component of the deal will increase VSE’s leverage, making the rapid realization of the projected $15 million in synergies and strong cash flow generation critical for de-leveraging in the post-acquisition period.

Financial Outlook

Prior to this announcement, VSE reported strong financial performance, with Q3 2025 revenue reaching $283 million, a 39% increase year-over-year. The company’s full-year 2025 revenue guidance was set between $1.1 billion and $1.15 billion. Following the integration of PAG, VSE anticipates a temporary spike in net leverage but targets a long-term ratio of 3.0x to 3.5x, intending to use free cash flow to reduce debt rapidly.

Sources: VSE Corporation (Business Wire)