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

ST Engineering Secures Multi-Year LEAP-1A MRO Contract with Xiamen Airlines

ST Engineering has officially signed a multi-year agreement with Xiamen Airlines to provide comprehensive maintenance, repair, and overhaul (MRO) services for the airline’s CFM LEAP-1A engines. Announced on February 4, 2026, during the Singapore Airshow, this contract marks a significant expansion of the 35-year partnership between the Singapore-based engineering group and the Chinese carrier.

Under the terms of the agreement, ST Engineering will perform the first Performance Restoration Shop Visit (PRSV) for the engines powering Xiamen Airlines’ Airbus A320neo family fleet. This deal underscores ST Engineering’s growing influence in the next-generation engine maintenance market and supports Xiamen Airlines’ operational transition as it integrates Airbus aircraft into its historically Boeing-centric fleet.

Scope of the Agreement

The contract focuses specifically on the CFM LEAP-1A engines, which power the Airbus A320neo family. According to the announcement, the agreement covers the maintenance requirements for Xiamen Airlines’ current narrowbody Airbus fleet, which consists of:

• 17 Airbus A321neo aircraft
• 2 Airbus A320neo aircraft

The primary service provided will be the Performance Restoration Shop Visit (PRSV). This is a major maintenance event intended to restore exhaust gas temperature (EGT) margins and fuel efficiency after engines have undergone significant operational cycles. By securing this agreement, Xiamen Airlines ensures that its relatively new Airbus fleet receives support from a facility with established expertise in LEAP engine technology.

Executive Commentary

Both companies emphasized the trust built over decades of cooperation. Tang Jianqi, Deputy General Manager of Engineering & Maintenance at Xiamen Airlines, highlighted the competitive nature of the selection process.

“The success of ST Engineering in winning this highly competitive bidding project… fully demonstrates its comprehensive competence in the engine maintenance industry, including quality, service, and pricing.”

, Tang Jianqi, Deputy General Manager of Engineering & Maintenance, Xiamen Airlines

Tay Eng Guan, Head of Engine Services at ST Engineering, noted that the contract reflects the airline’s confidence in their technical capabilities.

“This new agreement… is a testament to their strong confidence in our engine MRO capabilities, built on a robust track record of reliable and high-quality maintenance we have provided to their engine fleets over the years.”

, Tay Eng Guan, Head of Engine Services, ST Engineering

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Strategic Context and Market Impact

AirPro News Analysis

This agreement represents a pivotal moment for both entities. For Xiamen Airlines, a subsidiary of China Southern Airlines, the move secures critical support for its fleet modernization strategy. Historically known as an all-Boeing operator, the airline introduced Airbus aircraft in late 2022. Securing a regional MRO partner for the LEAP-1A engines is essential for maintaining the high service standards and operational reliability the airline is known for.

For ST Engineering, the deal validates its aggressive investment in next-generation capabilities. As the first independent MRO provider in Asia to join the CFM Branded Service Agreement (CBSA) network for LEAP engines, the company is positioning itself to capture the “maintenance wave” anticipated as engines delivered in the late 2010s reach their first major shop visits.

Capacity Expansion and Financials

To meet the rising demand for LEAP engine maintenance, ST Engineering is currently expanding its Singapore facility. The company aims to double its annual LEAP engine maintenance capacity to over 300 engines by 2027. This capacity growth is designed to support contracts exactly like the one signed with Xiamen Airlines, as well as future requirements for LEAP-1B engines powering Boeing 737 MAX fleets.

While the specific financial value of this contract was not disclosed, it contributes to a robust period for ST Engineering’s Commercial Aerospace division. The division reported a record $18.7 billion in total contract wins for the fiscal year 2025, with $1.7 billion secured in the fourth quarter alone.

A 35-Year Partnership

The collaboration between ST Engineering and Xiamen Airlines spans more than three decades, evolving alongside advancements in aviation technology. The partnership began with support for older engine types and has progressed through several generations of propulsion technology:

• Legacy Support: JT8D, CFM56-3, and CFM56-7B engines (supporting the Boeing 737 fleet).
• Current Support: CFM LEAP-1A (supporting the Airbus A320neo/A321neo fleet).
• Future Readiness: ST Engineering is preparing to support LEAP-1B engines, positioning itself to cover Xiamen Airlines’ Boeing 737 MAX fleet in the future.

This continuity ensures that as Xiamen Airlines diversifies its fleet, it retains a consistent maintenance partner capable of handling mixed-fleet requirements.

Sources

• ST Engineering

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

Airbus Forecasts Asia-Pacific Aviation Services Market to Hit $138.7 Billion by 2044

During the Singapore Airshow in February 2026, Airbus unveiled its latest Global Services Forecast (GSF) for the Asia-Pacific region, projecting a massive expansion in the aviation services sector. According to the manufacturer, the market value for aviation services in the region, which includes China and India, is expected to reach US$138.7 billion by 2044.

This projection represents a compound annual growth rate (CAGR) of 5.2% from 2025 levels. Airbus identifies the Asia-Pacific region as the world’s fastest-growing market for these services, driven by a surge in passenger traffic and a critical need for fleet modernization. The forecast anticipates that the region will require 19,560 new aircraft over the next two decades, a figure that accounts for 46% of total global demand.

Maintenance and Digitalization Driving Growth

The Airbus report breaks down the market into five key segments, highlighting where the capital investment is likely to flow over the next 20 years. The largest contributor to this valuation is the “Off-Wing Maintenance” sector, which includes engine and component overhauls.

According to the press release, the Off-Wing Maintenance segment is projected to grow from an estimated US$37.1 billion in 2025 to US$100 billion by 2044. This growth is necessitated by the expansion of regional fleets and the aging of current aircraft inventories.

While maintenance holds the highest value, the “Digital & Connectivity” segment is identified as the fastest-growing area. Airbus forecasts this sector will nearly quadruple in value, rising from US$2.9 billion to US$11.2 billion. This surge is attributed to the increasing adoption of AI-based predictive maintenance and the rising expectations for passenger connectivity.

“The Asia-Pacific region will see the largest volume of growth and activity in terms of aftermarket services… especially digital solutions are becoming real multipliers, enabling operators to scale up without compromising on reliability or cost.”

— Cristina Aguilar Grieder, SVP Customer Services, Airbus

Additional Market Segments

The forecast outlines three other critical areas of development:

• On-Wing Maintenance: Expected to grow to US$14 billion, supported by heavy infrastructure investment in India, Indonesia, Malaysia, and the Philippines.
• Modifications & Upgrades: Projected to reach US$6.2 billion, focusing on cabin modernization and premium retrofits.
• Training: Forecast to hit US$7.7 billion as the industry shifts toward competency-based training methods.

Workforce Demand: A Critical Challenge

To support this unprecedented growth, the Asia-Pacific region faces a significant human resources challenge. Airbus estimates a total requirement for 1.06 million new aviation professionals by 2044. This demand represents nearly half of the global requirement for skilled aviation labor.

The breakdown of this workforce demand includes:

• Pilots: Approximately 299,000 new recruits needed.
• Technicians: Approximately 322,000 maintenance specialists required.
• Cabin Crew: Approximately 439,000 service professionals needed.

AirPro News Analysis

While the Airbus figures paint a picture of robust health, we note that the projected growth relies heavily on the region’s ability to overcome supply chain constraints and labor shortages. The heavy emphasis on the “Digital & Connectivity” segment, quadrupling in value, suggests a strategic pivot by airlines. Carriers appear to be banking on AI and data analytics not just for efficiency, but as a necessary mitigation strategy against the looming workforce gap.

Furthermore, cross-referencing this data with broader industry reports provides context. Boeing’s recent outlook similarly identifies Southeast Asia as a growth engine, forecasting a need for nearly 4,885 new aircraft in that sub-region alone. Meanwhile, independent analysis from Aviation Week suggests the broader Asia-Pacific and China region will account for 30% of global MRO (Maintenance, Repair, and Overhaul) demand over the next decade. The alignment between these major forecasts underscores the consensus that the center of gravity for global aviation is firmly shifting toward Asia.

Frequently Asked Questions

What is the total value of the Asia-Pacific aviation services market by 2044?
Airbus forecasts the market will reach US$138.7 billion by 2044.

Which sector within aviation services is growing the fastest?
The “Digital & Connectivity” segment is the fastest-growing, expected to nearly quadruple to US$11.2 billion.

How many new aircraft will the Asia-Pacific region need?
The region is expected to require 19,560 new aircraft over the next 20 years, representing 46% of global demand.

How many new aviation professionals are needed in the region?
The forecast estimates a need for 1.06 million new professionals, including pilots, technicians, and cabin crew.

Sources

• Airbus Press Release
• Boeing Commercial Market Outlook
• Aviation Week MRO Forecasts

AMES Announces Major Expansion of Dubai MRO Capabilities for 2026

Aerostructures Middle East Services (AMES), the 50/50 joint venture between Safran Nacelles and Air France Industries KLM Engineering & Maintenance (AFI KLM E&M), has officially announced the launch of a significant growth phase beginning in 2026. According to the company’s announcement, this expansion is designed to meet surging demand for maintenance, repair, and overhaul (MRO) services across the Middle-East and Indian subcontinent.

The expansion centers on the construction of a new industrial workshop within the Jebel Ali Free Zone (Jafza) in Dubai. The project aims to bolster the region’s capacity to support next-generation aircraft fleets, specifically targeting the Airbus A320neo, A330neo, and Boeing 777 platforms.

Scaling Industrial Capacity and Workforce

The core of the announcement details a substantial increase in physical infrastructure and human capital. AMES plans to construct a new facility adding 1,900 square meters of industrial floor space. The company states that this addition represents a 40% increase in workshop area compared to its 2025 operational footprint.

Construction is scheduled to commence in 2026, with the new workshop expected to become fully operational by 2027. To support this physical expansion, AMES has committed to a major recruitment drive. The joint venture plans to double its workforce, targeting a total of approximately 100 employees by the end of 2026.

“The recent contracts signed by the parent companies prove the dynamism of the region and the need to strengthen our capacity in terms of infrastructure, material and human resources.”

, Dimitri Fauron, Co-Director of AMES

Strategic Drivers and Technical Capabilities

The decision to expand follows a period of sustained growth for the MRO provider. In 2024, AMES completed an initial extension that doubled its capacity for radome and fan stator module repairs. The upcoming 2026 phase is a direct response to what the company describes as “strong growth in demand” from regional airlines.

The new facility will feature specialized equipment to handle complex repairs, including a large-capacity autoclave. This equipment is essential for high-quality repairs of composite materials, such as radomes and nacelle components. The expansion will also support the company’s status as a licensed repair station for LEAP-1A nacelles, a critical component for the Airbus A320neo family.

“New licenses, such as the one for the A320neo, and strategic tools allow us to develop complex repair capabilities, including the replacement of main structural components.”

, Aymeric Verdier, Co-Director of AMES

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AirPro News Analysis

At AirPro News, we view this expansion as a clear indicator of the “glocal” strategy increasingly adopted by major aerospace conglomerates. By localizing heavy maintenance capabilities in Dubai, Safran and AFI KLM E&M are effectively reducing turnaround times for Middle Eastern carriers, mitigating the logistical costs and delays associated with shipping large components like nacelles to Europe or the US.

Furthermore, the doubling of the workforce signals a maturing of the local aerospace labor market in the UAE. As global supply chains remain susceptible to bottlenecks, the ability to perform complex composite repairs and structural replacements locally enhances the operational resilience of airlines in the region.

Sources

Sources: Safran Group