MRO & Manufacturing

ST Engineering Signs Multi-Year MRO Contract with Xiamen Airlines

ST Engineering secures multi-year contract to maintain CFM LEAP-1A engines for Xiamen Airlines’ Airbus A320neo fleet, expanding capacity by 2027.

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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.

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Photo Credit: ST Engineering

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