JAL - Japan Airlines (JL, Tokyo Haneda) is set to acquire a 5% stake in ST Aerospace (Guangzhou) Aviation Services Company Limited (STA Guangzhou). In a filing to the Singapore Stock Exchange, Singapore Technologies Engineering (ST Engineering) said the deal had been signed by its aerospace arm, Singapore Technologies Aerospace (ST Aerospace), for a total consideration of USD7 million.

"Given Japan Airlines’ strong reputation in quality and standards for both its services and demands placed on MRO providers, the new partnership will facilitate cross-learning and enable STA Guangzhou to enhance its own standing in safety and quality, and be better positioned for greater growth," the disclosure said.

STA Guangzhou is a 49/51 joint-venture between ST Engineering and Guangzhou Airport Authority. Upon completion of the deal, ST Aerospace and Guangdong Airport Authority will each own 44% and 51% stake respectively in STA Guangzhou, while Japan Airlines will become a strategic partner in the joint venture with a 5% stake.

Established in 2014, STA Guangzhou specializes in aircraft MRO services at Guangzhou Baiyun International Airport in China.