Lufthansa Technik signs strategic cooperation agreement with National Air Services

Commenting on the agreement and its significance, Mr. Sulaiman Al-Hamdan, CEO, NAS Group, said:

"This agreement is the result of long term negotiations between the two companies for more than a year, and we are proud and happy of this partnership with Lufthansa Technik admiring the ability of NAS to expand and absorb such advanced technology."

The agreement is divided into two implementation phases said Al-Hamdan, the first phase of implementation would take about three years and focus on ways of enhancing joint cooperation between the two sides, transfer and resettlement aspects of knowledge and advanced technology in the field of engineering and aircraft maintenance.

The first phase includes 3 items; the 1st item includes the assumption that Lufthansa Technik maintains NAS aircraft engines. The 2nd item includes extension of "Lufthansa Technik maintenance of aircraft's equipment and instruments" for a period of 10 years. Accordingly, Lufthansa Technik will be responsible of maintaining the single aisle aircraft equipment and instruments (such as Airbus A320 and Embraer 190 and 195 as well as the business jet BBJ), The 3rd item relates to the presence of engineers and technical advisories from Lufthansa Technik to oversee the practical implementation by NAS Tech for the maintenance of aircraft according to standard technical specifications applicable in Lufthansa Technik.

The second phase of the agreement is intended to take place within three years whereby through the technical cooperation between the two companies, 3rd party customers in Saudi Arabia are to be serviced at world class standards.

AL-Hamdan added, according to the agreement, the two companies shall deal with each other as strategic allies, which means that NAS can support Lufthansa Technik in its future projects in Saudi Arabia, as well getting support from Lufthansa Technik in NAS business and future projects. Seeking to activate the agreement, Al-Hamdan mentioned that NAS is investing currently to establish the necessary "facilities" including, Aircraft's hangar and integrated maintenance workshops.

The second and most important part of the investment relates to the rehabilitation of the Saudi cadres, where the company developed its plan to open up recruitment and training for Saudi youth, through which qualified candidates appointed at NAS Tech and sent to a 3 phases training program. The first phase is 6 months training at NAS Tech. Then, in the second phase it is intended that trainees are sent on a scholarship at the expense of the NAS Tech to Germany for two years training at Lufthansa Technik which has a dedicated aviation training organization. The third phase is on Job training at NAS Tech workshops where trainees get technical qualification on the maintenance of specialized type of aircraft that NAS Tech is licensed to maintain.

In the same regard, Mr. Al Hamdan said, "NAS is set to sign training cooperation agreements with Saudi Engineering graduates in the field of Aviation, for training during the summer holidays at NAS Tech Facilities for Aircraft Maintenance." He added that outstanding trainees shall be hired.

Regarding the expected returns to be achieved from this investment, Mr. Suleiman Al Hamdan said that NAS looks at this agreement as practical application of long-term investment an NAS shall gain a lot of return including:

• Authorization for the company to the maintenance of large civil aircraft, whether those are still in service, or expected to be operating commercially in the future.

• Maintain single-aisle aircraft such as the Airbus group A320 family, Boeing 737, aircraft Embraer 195, 190 and 170.

• Maintain of business jets such as Gulfstream, Hawker, Falcon and Cessna.

• Self-maintenance for NAS Company's fleet as well as under management aircraft.

Al-Hamdan said, the importance of this investment is not limited to these gains, but there are more important element which includes building national cadres trained and qualified to work in the field of engineering and maintenance in the aviation sector.

On this occasion, Mr. Heerdt, Senior Vice President Marketing and Sales of Lufthansa Technik, said that the company based its selection of technical cooperation with NAS on its reputation and performance over the last 10 years as a leader in the field of private aviation in Saudi Arabia. NAS' management has an ambitious vision and LHT is confident of its successful implementation.

He concluded that all of these aspects supported Lufthansa Technik's decision to sign an agreement bearing in mind the growing scale of aviation market in the Gulf region. "Through this cooperation we are confident of jointly increasing our market share," he added.

From the technical and operational point of view, Eng. Hani Kalakattawi, Chief Technical Officer, NAS, said that the agreement will bring many positive benefits, especially in the aspect of international licenses.

He added that NAS Tech is currently holding licenses for aircraft maintenance for its under-management aircraft from the Saudi Civil Aviation Authority (GACA), Cayman Island Aviation Authority (CAACI); and at the completion of the implementation stage of this agreement; NAS Tech is expecting to get licenses from the Federal America Aviation Authority (FAA) and European Aviation Safety Agency (EASA).

NAS Tech is currently qualified and licensed for the maintenance of single-aisle aircraft and business jet aircraft, but the maintainace performance is limited only to "light maintenance checks", that is taken place after each flight or "routine maintenance checks" according to aircraft maintenance schedules issued by aircraft manufacturers and approved by civil aviation authorities on weekly, monthly or quarterly basis. After the implementation of the agreement and within three years, NAS Tech will be qualified to the most important maintenance work and the most "aircraft advanced maintenance checks" which includes comprehensive and detailed airframe inspection.

After the implementation of the agreement as per the schedule, NAS Tech will have the full capability to repair and maintain aircraft different parts and components including wheels, tires, brakes, external structure, electrical cables and connectors, computers and electronic boxes as well as repair and maintenance of all jets business, including the Falcon aircraft.