WINDSOR LOCKS, Conn. - Japan Airlines (JAL) has selected Hamilton Sundstrand Corporation to provide a total supply chain maintenance solution for its systems on JAL’s fleet of 35 Boeing 787 aircraft. Hamilton Sundstrand is a subsidiary of United Technologies Corp. (NYSE: UTX).
The maintenance support agreement lasts for 10 years with an option to extend for an additional 10 years. The value of the agreement and extension option is projected to be worth approximately $350 million. Under the agreement, Hamilton Sundstrand will provide inventory support services, repair services, logistics, and technical cooperation for the electric power system, air management system, nitrogen generation system, emergency power system, and primary and remote power distribution systems of JAL’s 787 fleet. This agreement expands upon Hamilton Sundstrand’s existing On Site Support program, which provides spare parts support on a variety of aircraft that comprise the JAL fleet.
Technical cooperation between Hamilton Sundstrand and JAL is designed to drive product performance and maturity. Hamilton Sundstrand will provide asset management for JAL and component repair services at both JAL and Hamilton Sundstrand repair facilities. It will be managed by Hamilton Sundstrand’s C.A.R.E. (Comprehensive Accessory Repair and Exchange) teams located in the United States, Singapore and Japan.
"Hamilton Sundstrand is honored to be selected to provide maintenance support for its systems to yet another 787 airline and to build upon its long-standing relationship with JAL," said Matthew Bromberg, Hamilton Sundstrand Customer Service vice president and general manager. "This selection completes an extensive 18-month technical and commercial evaluation by JAL, and illustrates the value proposition offered by our C.A.R.E. program."
Hamilton Sundstrand is the largest systems supplier on the 787 with approximately 1,300 individual parts per aircraft shipset.
"As JAL implements its new support strategy, compelling service programs like this will help JAL minimize maintenance costs and continue its industry leading dispatch reliability," said Nobuhiro Sato, JAL vice president, engineering and maintenance. “We are confident that working directly with an OEM that has significant systems content on the 787 will play a key role in the operational success of this aircraft in JAL’s fleet."
JAL is part of the launch group of airlines that placed early orders for the 787, which has demonstrated the most demand for a new launch aircraft in aviation history. JAL is one of the largest airlines in the world -- carrying, with its sister companies, over 41 million passengers every year to 221 destinations in 40 countries in Asia, Europe, the Americas, and Oceania including codeshare. JAL also is a member of the Oneworld airline alliance.
With 2010 sales of $5.6 billion, Hamilton Sundstrand is headquartered in Windsor Locks, Conn. Among the world’s largest suppliers of technologically advanced aerospace and industrial products, the company designs, manufactures and services aerospace systems and provides integrated system solutions for commercial, regional, corporate and military aircraft. It also is a major supplier for international space programs.
United Technologies Corp., based in Hartford, Conn., is a diversified company providing high technology products and services to the building and aerospace industries worldwide.
This press release contains forward-looking statements concerning potential production and sale of Hamilton Sundstrand aerospace products and services. Important uncertainties that could cause actual results to differ materially from those anticipated include issues that may arise regarding the severity and duration of global recessionary conditions, including extended contraction in credit conditions; the impact of volatility and weakness in financial markets on overall levels of economic activity; declines in end market demand in the aerospace industry; challenges in the design, development, production and support of advanced technologies; as well as other risks and uncertainties, including but not limited to those detailed from time to time in United Technologies Corporation’s Securities and Exchange Commission filings.