China Eastern Airlines (MU, Shanghai Hongqiao) is set to become the sole owner of maintenance, repair, and overhaul (MRO) entity STARCO after agreeing to acquire the 49% stake currently held by joint venture partner ST Engineering, just one year after the two partners extended their joint-venture. The companies said they have now decided to conclude the collaboration to allow both parties to "focus on their own growth plans."

The airline will pay a total cash consideration of CNY680.5 million yuan (USD95.7 million) for the stake, according to a press release from the seller. The amount will be settled in two tranches: an initial CNY506.7 million (USD71.3 million) on completion of the divestment, followed by CNY173.8 million (USD24.5 million) payable by December 31, 2026, and secured by a bank guarantee.

Established in 2004, STARCO provides airframe MRO services at China Eastern Airlines's primary hubs, Shanghai Hongqiao and Shanghai Pudong.

ST Engineering stated the sale is part of a strategy to rationalise its MRO footprint, though it retains a presence in China through facilities in Guangzhou, Xiamen, and Ezhou.

China Eastern Airlines Technic, the airline's own MRO company, offers base maintenance in Kunming Changshui, Lanzhou, Qingdao Jiaodong, Taiyuan, and Xi'an Xianyang, per ch-aviation MRO data.