Capital A CEO Tony Fernandes said the investment will also be allocated for ADE’s further business expansion in other verticals and geographical markets.

He said the first phase of the maintenance hangar would be completed by the second quarter of 2024 (Q2 2024) and the second phase would be ready by Q3 2024.

“In terms of size, the 14 lines mean 14 planes could be repaired at any one time and we are looking into growing (to) 20 lines within three years,” he said at a press conference after the signing ceremony between ADE and OCP Asia here today.

The ceremony was witnessed by investment, trade and industry minister Tengku Zafrul Aziz.

Fernandes said he expects ADE to contribute profits of between 30% and 40% to Capital A in the next four to five years.

“The US$100 million will give us the ability to expand into 20 lines and we will cater (our) services to most of the airlines around the world,” he said.

Meanwhile, ADE CEO Mahesh Kumar said the investment from OCP Asia would also enable enhancements to existing facilities at core AirAsia operating hubs, making ADE one of the largest aircraft maintenance, repair and overhaul service providers in the region.

“We are looking at 70% of aircraft services from AirAsia and 30% from non-AirAsia airlines, including Airbus and Boeing aircraft,” he said.

Founded in 2020, ADE offers aircraft services such as line maintenance, base maintenance, component repair and overhaul, warehouse management, technical and design organisation services along with digitally driven engineering solutions and engineering support services.