ST Engineering today announced that its aerospace arm, ST Aerospace, has been awarded a contract from Spring Airlines for component Maintenance-By-the-Hour (MBHTM) services worth about US$105 million ($148 million).

The contract will expand the current support it provides to Shanghai-based low-cost carrier Spring Airlines’ fleet from 15 Airbus A320 aircraft to an expected fleet of up to 78 aircraft of the same type. The new contract will commence in April 2010 and stretch over eight years.

The contract also includes the setting up of a new warehouse at Spring Airlines’ base at the Pudong International Airport in Shanghai to enhance the support to Spring Airlines. This is in addition to the existing warehouse at its base at the Hongqiao International Airport. The additional warehouse will provide the fleet with easy access to component consignment services at the Pudong International Airport.

Established in 2005 by Spring Travel, China’s domestic travel agency, Spring Airlines started operations with an initial fleet of three Airbus A320 aircraft. Today, it operates with a current fleet of 17 Airbus A320 out of Shanghai’s Hongqiao and Pudong international airports as well as Sanya’s Fenghuang Airport.

Currently serving more than 50 routes within Mainland China including destinations such as Guangzhou, Kunming and Urumqi, Spring Airlines hopes to expand into international routes this year.