Ameco Beijing Provides Engine PBH Services for the First Time

In February of 2015, Ameco signed an engine Power-by-the-Hour (PBH) contract with Shanghai Airlines, a wholly owned subsidiary of China Eastern Airlines. Based on the contract, Ameco will provide engine overhaul, repair and other value-added services on 14 PW4000s from six Boeing 767s of Shanghai Airlines. This is the first time for Ameco to provide engine services under a PBH model.

Under an engine PBH service model, the MRO suppliers will charge the airlines based on engine flight hours and other indexes. In comparison to a single charge business model, the flat rate of the PBH is beneficial for airlines to stabilize their maintenance costs and let them focus on their core business.

“China Eastern Airlines is one of our most important and closest partners since the start-up of our company. The Power-by-the-Hour model is an innovation for our cooperation and it is also a trust of our customer to our maintenance capability,” said Zhu Xiao, Ameco’s executive director of Sales and Supply.

Ameco and China Eastern Airlines have been cooperating for many years by providing mutual services, which has benefited each other. They are looking for opportunities for more extensive and in-depth cooperation.

Ameco is capable of providing PW4000 and RB211 engine overhaul. It is also developing overhaul capability on a new engine type.