Malaysia's ADE bets on Southeast Asia aircraft maintenance demand

Southeast Asia is emerging as a key aircraft maintenance hub, and the chief executive officer of a relatively new player says his company is betting big to take advantage of expected further growth in demand. Established in 2018, AirAsia-affiliated Asia Digital Engineering maintains, repairs and overhauls aircraft for the budget carrier and other customers. It, like the airline, falls under Capital A, which is led by Malaysian businessman and AirAsia founder Tony Fernandes. Mahesh Kumar, ADE's CEO, said the company has seen a spike in demand for aircraft maintenance and repair in the region and is in discussions with foreign companies looking for opportunities. He said it is currently raising 400m ringgit ($91m) in debt-equity financing. Of that, 250m ringgit is to be used to construct a new maintenance, repair and overhaul (MRO) facility near Kuala Lumpur International Airport. "We have received queries from various airlines seeking an MRO partner in Southeast Asia due to strategic location and cost competitiveness," he said in a recent interview. He declined to name them for reasons of confidentiality. According to research firm Mordor Intelligence, Southeast Asia's aircraft MRO market covering commercial, military and general aviation was worth more than $4.5b in 2021 and is forecast to record compound annual growth rate in excess of 8.5% from 2022 to 2027.<br/>