Saturday, September 19, 2009

Malaysia Enhances Military Contract Opportunities in Region



Malaysia Enhances Military Contract Opportunities in Region

By Wendell Minnick

U.S.-based Derco Aerospace and Malaysia-based AIROD Sdn Bhd signed a MOU and a “Teaming Agreement” Nov. 11 at the Dubai Air Show. AIROD President Tan Sri Ahmad Johan and, Derco Executive Vice President Mark Hoehnen both signed the agreement.

The MOU will establish a relationship between the two companies to create a propeller repair and overhaul capability at AIROD’s facility in Kuala Lumpur.

“The project will define the parties’ tasks which will address the accomplishment of maintenance support, supply of parts, component overhauls, modernization and upgrading, engineering, and materials, technical publications and training,” stated a joint press release.

“We cannot at this point identify the customers,” said Joginder Singh, senior general manager, international marketing, AIROD. “This is a business relationship where we will set up a propeller repair and overhaul facility.”

Both companies also entered into a teaming agreement to provide “cost effective solutions” in maintenance, upgrades and logistics support for C-130 operators around Asia.

“The second agreement combines our individual strengths and we will be able to reduce costs. The teaming agreement will also help secure more contracts,” said Singh.

AIROD has a long history of maintenance, repair and overhaul services with more than 5,800 aircraft and over 900,000 manhours spent per year. Military aircraft include the Lockheed C-130, Northrop F-5 Tiger, and Sikorsky S-70A. Around 80% of AIROD’s business is military related.

AIROD was established in 1976 as the first and only in-country facility to support the Royal Malaysian Air Force. In 1985, it was privatized as a joint venture between National Aerospace and Defense Industries and (NADI) Lockheed Aircraft Systems International. However, today it a fully owned Malaysian company under the NADI group.