July 12, 2012
Finnair and GA Telesis are in talks that, if successful, would lead to the takeover of the airline’s Helsinki-based, third-party engine overhaul business by the Florida-based service provider.
GA Telesis would assume Finnair Engine Services’ (FES’) work on CF6-80C2s, CFM565B/Cs and PW2000s, the company says.
The deal, which could keep about 75 jobs in Helsinki, would not involve any work on Finnair engines, the carrier confirms.
GA Telesis describes the Finnair talks as “advanced,” but President and CEO Abdol Moabery cautioned that “there are a lot of moving pieces that need to come together to make this deal happen.”
Earlier this year, Finnair announced plans to shut down FES, which employed about 250 workers, and outsource its own engine maintenance. Last week, the carrier confirmed it had a 10-year deal in place with SR Technics for all of its CFM56 engine services, as well as component services for its entire Airbus and Embraer fleets.
That agreement, which Finnair Chief Operating Officer Ville Iho called “a natural next step” in the company’s shift to focusing on core airline services, included the sale of certain assets and inventories to SR Technics. Finnair continues to provide its own line maintenance at major stations.
News of the GA Telesis-Finnair talks come one day after GA Telesis announced a joint venture with Air China to establish a used spare parts supplier in China. The venture, GA Telesis China, plans to focus on acquiring and distributing airworthy used parts to the Asian market.