ACTS wins US$2.5 billion GE and CFM International contracts

Source: Exec Digital Canada

Date :10/01/2008 05:13:58

ACE Aviation's recently spun-off aircraft repair subsidiary ACTS has won ten year aircraft repair and overhaul contracts with GE Aviation and CFM International worth about US$2.5 billion.

The agreements, announced yesterday, will make GE and CFM International the sole suppliers of materials to repair and overhaul CF34 and CFM56 model aircraft engines.

Both agreements cover all life limited and non-life limited parts, as well as component repair and used materials.

Turnaround

ACTS - formerly Air Canada Technical Services has been servicing the companies' engines for more than 20 years. The latest transactions will improve the quality, turnaround time and cost of repairs, said Chahram Bolouri, president and CEO of ACTS.

ACE Aviation spun off the former Air Canada subsidiary last year to private-equity investors Sageview Capital and Kohlberg Kravis Roberts for $683 million. ACE retains a 23 per cent share, valued at $83 million.

January 10, 2008