TAT Technologies subsidiary, TAT Piedmont, has signed an additional new strategic MRO and lease agreement with Honeywell for the maintenance repair and overhaul of Honeywell's 131 Series of Auxiliary Power Units.
The 131 Series is the APU manufactured by Honeywell that serves the Boeing 737 and Airbus 319/320/321 among other aircraft types with over 16,000 engines worldwide and additional units to be produced in the future.
Igal Zamir, CEO and President of TAT Technologies, stated: "The 131 Series APU is the most common APU in the world. The Company believes that due to the execution of the new strategic agreement with Honeywell, its addressable market size in the MRO segment is expected to grow in a substantial manner, and therefore opens the door to TAT for potentially significant revenue growth in the MRO segment. Over the last nine months TAT signed several strategic long-term contracts with Honeywell which position TAT as a key global authorized vendor for the maintenance repair and overhaul as well as leasing of Honeywell's APU."
The combined contracts which include the 36, 85/95, 331-200/250, 331-500 (MRO and Lease bank) and now the 131 Series APUs (MRO and Lease), enable TAT to offer its services to numerous airlines and aircraft platforms which are expected to be in operations in the coming decade. "We expect to see a major increase in revenues in the coming years as the industry will recover from COVID19," Zamir said.