KUALA LUMPUR: Asia Digital Engineering (ADE), the maintenance, repair and overhaul (MRO) arm of Capital A, plans to increase its capacity to 40 maintenance lines within the next three to five years, up from 16 it currently has, to capture more of AirAsia’s growing fleet and expand services to foreign airlines.
CEO Mahesh Kumar said yesterday ADE will add another four lines by year-end with discussions underway with Malaysia Airports Holdings Bhd (MAHB) for a separate 20-line hangar.
“So currently we have 16. We want to add another four, which will be 20. On top of that, we want to build another 20 lines and end up with 40 lines. That’s our target for the next three to five years. That’s on the hangar line. On top of it, we would like to build on the component side as well, to partner with the OEMs to build some component shops,” he told a press conference after signing an agreement with Air France.
Mahesh said currently ADE is servicing 70% of AirAsia’s
250-strong fleet, with the remaining 30% still outsourced due to capacity constraints.
“When I reach 100% (AirAsia fleet), probably in the next two years, that’s the target. But at the same time, AirAsia is also growing to 300 planes, they have a target in the next five years, so I need to keep up with their speed as well,” he said.
For now, Mahesh said 90% of ADE’s revenue comes from AirAsia, with only 10% from non-AirAsia clients.
“The ultimate target I’m looking at is 70:30 with 70% AirAsia, 30% non-AirAsia. But the low-hanging fruit is still capturing AirAsia’s business first,” Mahesh said.
ADE has signed a long-term agreement with Air France to provide heavy maintenance and aircraft modification services to the airline.
Under the agreement, ADE will commence heavy maintenance checks on Air France’s Airbus
A330-200 aircraft with the first induction scheduled for October 2025, followed by additional checks on a phased basis.
The document exchange was witnessed by Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz, and French ambassador to Malaysia Axel Cruau.
In a separate statement, Tengku Zafrul said: “UN Tourism shared that global international visitor arrivals in 2024 had already reached 99% of pre-pandemic levels.
“For the same period, Asia Pacific alone registered 627.8 million visitors, which is forecast to increase to 801 million by 2027.
“Malaysia’s aerospace industry, with our clear growth policies, well-established ecosystem and rule of law – is well-poised to capture that growth.
“To that end, we welcome partnerships with foreign aircraft providers who see Malaysia’s value proposition as regional services and MRO hub to support their client servicing in this growing region.”
Mahesh said it welcomes
world-class airlines into its growing portfolio of customers.
“This partnership with Air France marks a historic milestone not only for ADE but also for Malaysia and the wider Asean aerospace industry.
“Being entrusted with their aircraft maintenance is a strong testament to the capabilities and competitiveness of our region’s MRO services.
“We are proud to strengthen Malaysia’s position as a hub for aerospace excellence while supporting Air France’s continued operational reliability.”
Additionally, ADE also signed a long-term component agreement with Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) to maintain AirAsia group’s new A321neo fleet.
This partnership will provide support for AirAsia’s rapidly expanding fleet of 377 A321neo aircraft, which will operate across multiple affiliates in Malaysia and Thailand.