With an estimated investment sum of RM70 million, the facility at the nearby Malaysia Airlines A380 hangar at the KL International Airport is expected to begin operations in October.

Both parties are in the final stage of negotiations and are expected to seal the deal in the first quarter of this year.

Syed Budriz, 34, is the nephew of Sultan of Selangor Sultan Sharafuddin Idris Shah and Sultan of Perlis Tuanku Syed Sirajuddin Putra Jamalullail. He could not be reached for comment.

AirAsia recently awarded Singapore Technologies a US$130 million (RM455 million) aircraft component maintenance-by-the-hour contract for its new fleet of A320s.

The contract involves component maintenance support for over 10 years for the 130 units of its A320 aircraft.

Plans of bringing back AirAsia's MRO operation to Malaysia will not only benefit the airline in terms of significant cost savings, but will also contribute positively to the nation, a source said.

As the single largest operator of the A320 in the region, the move will enable Malaysia to position itself as the regional service centre of the aircraft.

AirAsia has placed 150 firm orders for the A320 aircraft, valued at US$10.05 billion (RM35.18 billion).

The budget airline will take full delivery of its entire aircraft orders by 2013, making it the world's second largest operator of A320s, after Jet Blue, by then.

To date, it has already taken delivery of 16 units of the A320 aircraft.

By Anna Maria Samsudin

Sources:

1. http://www.btimes.com.my/Current_News/BT/Monday/Column/BT606673.txt/Article/
2. http://www.nst.com.my/Current_News/BT/Monday/Column/BT606673.txt/Article/