Qantas and SR Technics to Examine Joint Venture for A380 Component Supply

Sydney, 16 January 2006

Qantas announced today that it had signed a non-binding Memorandum of Understanding with European aircraft Maintenance Repair and Overhaul organisation SR Technics* to establish a joint venture company to provide aircraft component management services for the Airbus A380.

The Executive General Manager of Qantas Engineering, Mr David Cox, said that with the A380 entering service in the next 12 months, Qantas had identified a need for the service, particularly in the Asia-Pacific region.

"As deliveries of the A380 begin from late 2006, all airlines operating the aircraft will need to prepare their support options for the aircraft which includes their component management needs," Mr Cox said.

"While airlines will determine their own maintenance needs for the aircraft, Qantas Engineering has identified an opportunity to create an independent business to provide a cost effective component inventory service for all A380 customer airlines.

"We have been in discussions with a number of industry players over the past year with a view to establishing an A380 component inventory management and supply business, and have now signed a non-binding Memorandum of Understanding (MoU) with SR Technics, an industry leader in aircraft component solutions.

"This MoU will allow Qantas and SR Technics to move beyond informal discussions to look at establishing a joint venture business, examine options for an operational base and begin talking formally to potential customers."

* SR Technics is a leading independent total solutions provider of aircraft, component, engine and technical services. With operations in Europe, the UK and Ireland, the group offers technical solutions and services to over 500 customers around the world, handling more than 750 aircraft, 300 powerplants and 78,000 components every year.

Issued by Qantas Corporate Communication (3385)