China Eastern (CES) subsidiary Eastern Airlines Technic has signed a letter of intent (LOI) with Airbus services company Satair to engage in discussions for a potential collaboration.
The collaboration would seek to deliver a comprehensive material management service for a large scope of expendable parts, specifically to all CES's Airbus fleets. Satair said in a release that this would optimise supply chain processes and ensure seamless material flow through the integration of the two parties' resources and expertise.
“Our IMS solution will not only maximise spare parts availability but also optimise stock levels, helping CES to boost cash flow and improve overall operational performance,” said Satair managing director, China Andy Lee.
The agreement will help CES free up capital by avoiding excess inventory and reinvest in other areas of its business.
CES currently operates a fleet of over 450 Airbus aircraft, including A320, A330, and A350 aircraft. It is the largest Chinese Airbus operator.