SEPANG: Asia Digital Engineering (ADE), the maintenance, repair and overhaul (MRO) division of Capital A Bhd, is in talks with Malaysia Airports Holdings Bhd (MAHB) on finalising the site for a new aircraft MRO hangar to meet growing demand.

ADE CEO Mahesh Kumar said ADE has already obtained approval for five acres of land from MAHB to construct an MRO facility and expects negotiations to be finalised with MAHB by the end of this year.

“Once we obtain the site approval, construction of the new hangar will take about 18 months, and the new facility will have four additional MRO lines. To support our expansion and demand, we are also in talks with MAHB to secure an additional 20 acres within the KLIA area for development as a premier MRO hub,” he told reporters at the grand opening of its modern 14-line MRO hangar today.

ADE is conducting soil tests on the five-acre site next to its new MRO hangar

Mahesh said ADE is poised to become a key player and the biggest in the regional MRO sector. It will have the largest number of lines and provide efficient and cost-effective solutions.

The newly launched MRO hangar stands as Malaysia’s largest and most advanced MRO hangar to date, highlighting ADE’s dedication to spearheading the MRO industry in the Asean region.

Mahesh said the completion of this hangar is perfectly timed to meet the company’s growing demand for MRO services.

“We will be completing our 200th C-check this year with initially seven lines, and the addition of up to 14 lines will significantly expand our capacity to serve more clients. This landmark facility enhances our capabilities and creates at least 500 new jobs in Malaysia, attracting local talent and foreign investment.

“We are committed to nurturing aviation professionals and setting new standards in the MRO industry,“ he said

The facility spans over 380,000 square feet and covers 20.25 acres within the KLIA Aeronautical Support Zone 1 (ASZ 1), part of Malaysia Airports’ KLIA Aeropolis development.

The hangar features dedicated workshops, including composite, sheet metal and machine, upholstery, cabin interior repair, oven and boiler, and a 3D printing lab for aircraft livery. Additionally, it houses a digital product development centre, positioning ADE as one of the region’s most extensive MRO providers.

Capital A CEO Tan Sri Tony Fernandes said ADE will carry out MRO services for the AirAsia fleet that has been in storage since the pandemic. “Out of the 240 aircraft we have, 10 are still in deep storage. We need to get that repaired and flying again before we cater for other airlines for MRO services.”

With more than 20 years of engineering expertise supporting AirAsia, ADE will leverage this experience to attract third-party airlines.

ADE’s services include component support, line maintenance, and base maintenance for aircraft such as the Airbus A320 and A330 families and the Boeing 737 series. ADE plans to expand its capacity to service additional aircraft types.

ADE recently obtained EASA Part 145 Maintenance Organisation approval and Approved Maintenance Organization (AMO) certifications in seven other countries, with plans to expand across the region.

In 2023, ADE received a US$100 million investment from OCP Asia Ltd, providing a strong boost for its next growth phase.

Fernandes said the new hangar represents ADE’s vision for the future of MRO in Asia, with ambitions to disrupt and become the leading provider in Southeast Asia and beyond.

“In just four years since ADE’s inception, we have built the competencies and facilities necessary to become a leader in this segment. This facility will enhance our capability to provide top-notch value and services to AirAsia and other airlines.

“This growth is also crucial in supporting AirAsia’s ambitious goal of operating 300 aircraft within five years. This milestone firmly places Malaysia on the map as a world-leading MRO provider,“ he added.