AFI KLM E&M Sets Up China Joint Venture With Beijing General Aviation Co. Ltd

AFI KLM E&M and Beijing General Aviation Co Ltd (BGAC) today held an opening ceremony to celebrate the creation of AFI KLM E&M-BGAC Line Maintenance Co. Ltd

28th Feb 2017



AFI KLM E&M Sets Up China Joint Venture With Beijing General Aviation Co. Ltd

Entity dedicated to line maintenance.

 AFI KLM E&M and Beijing General Aviation Co Ltd (BGAC) today held an opening ceremony to celebrate the creation of AFI KLM E&M-BGAC Line Maintenance Co. Ltd, an aircraft maintenance joint venture who is benefitting from the new open policy of Chinese government to welcome and promote foreign initiatives to partner with Chinese companies.

Launching in line maintenance

A specialist in implementing general aviation manufacturing and operation businesses, BGAC has teamed up with AFI KLM E&M to develop its MRO business arm. The joint venture set up by the two partners is scheduled to begin operations on April first. The new business' brand name is Beijing Line Maintenance International, and it will provide line maintenance services for aircraft in the AIR FRANCE KLM fleet at the Beijing airport, before extending its service offering to customer airlines operating in China.
At a ceremony hold at BAIC (Mother Company of BGAC) headquarters in Beijing on February 27, BGAC chief executive Ling Zhuanghuai said: "This agreement is an important milestone for our group, which aims to become a leading aircraft line maintenance player on the Chinese market. AFI KLM E&M is globally recognized for its MRO expertise and service quality and will be our best ally in achieving our objectives."

A logical development for AFI KLM E&M
This latest partnership is in line with the AFI KLM E&M's strategy of consolidating its global line maintenance network, working with local players. In October 2015, for example, the Group announced that it had signed an agreement with SHS Technics, a Dakar (Senegal) line maintenance company, under which it acquired an equity interest.
Anne Brachet, Executive Vice President AIR FRANCE KLM Engineering & Maintenance, said: "We are delighted with this opportunity to strengthen our international line maintenance capabilities. In BGAC, AFI KLM E&M has found a Chinese partner with a strong local foothold and reputation, which is a guarantee of success for the future joint venture."
Representing AFI KLM E&M at the ceremony, Ton Dortmans, EVP KLM E&M added: "AFI KLM E&M has a rich and trustful history with Chinese airline business. Today, we are proud and happy to expand further our Chinese network with this new Line Maintenance JV with BGAC."

About Beijing General Aviation Company
Beijing General Aviation Co. Ltd is affiliated to Beijing Automotive Group Co., Ltd (BAIC), one of the top backbone carmakers group in China. BAIC achieved its revenue over 400 billion RMB in 2016 and ranked No. 160 of Fortune 500. BGAC is a new strategical sector of BAIC and dedicated in developing whole industry chain of general aviation. Its activities cover the R&D and manufacture of general aircraft and major parts as well as general aviation operations and relative business, including sales, maintenance, training, FBO operation and other segment market.

About AFI KLM E&M
Air France Industries KLM Engineering & Maintenance is a major multi-product MRO (Maintenance, Repair, Overhaul) provider. With a workforce of over 14,000, AFI KLM E&M offers comprehensive technical support for airlines, ranging from engineering and line maintenance to engine overhaul, aero structure and fan thrust reverser support, as well as the management, repair and supply of aircraft components, structured around a powerful logistics network. AFI KLM E&M supports almost 2000 aircraft operated by 200 major international and domestic airlines.

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