China Eastern to start Shanghai base operations

China Eastern Airlines Corp Ltd<600115><670> has set up an aircraft engine maintenance facility in Shanghai with U.S.-based United Technologies Corp's jet engine arm, Pratt & Whitney Corp.

The 15-year maintenance, repair and overhaul (MRO) service agreement, worth US$99 million, was signed in late 2006. The U.S. Original Equipment Manufacturer (OEM) aims to provide service between 200 to 300 CFM56 engines a year when it becomes fully operational to reduce engine overhaul costs and turn around time. The base is expected to start operations in 2008.

Pratt & Whitney has supplied about 270 CFM56 engines to China Eastern, which is currently the largest CFM56 operator in the Asia Pacific region. The Shanghai Pratt & Whitney Aircraft Engine Maintenance Co Ltd is the largest of its kind in Asia and is expected to bring China's MRO industry to a higher level.

Pratt and Whitney also has dealings with China Southern Airlines<600029><1055>, Air China<601111><753> and Hainan Airlines<900945><600221>. The new 250,000 sq. feet base uses the latest information technology systems and has been designed to meet the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED? Platinum standards.