THY & ST AERO have signed a Memorandum of Understanding for being strategic partners.

16.06.2005

TURKISH AIRLINES and SINGAPORE TECHNOLOGIES AEROSPACE
SIGNED MOU TO SET UP A GREENFIELD MRO CENTRE

 Paris - 16 June 2005 - Turkish Airlines (THY) & Singapore Technologies Aerospace (ST Aerospace), the aerospace arm of Singapore Technologies Engineering (ST Engineering), have signed a Memorandum of Understanding for being strategic partners on a 50% - 50% (equal) shares to set up a Maintenance, Repair and Overhaul (MRO) facility in Kurtkoy Sabiha Gokcen International Airport, Istanbul, Turkey.

The new MRO center, named HABOM, will perform services consisting of commercial aircraft maintenance and modifications, engine and component maintenance, repair and overhaul, and also integrated component support for Boeing and Airbus aircraft. HABOM will be a center of excellence for narrow body and wide body fleet types, and will target customers from regions including Europe, CIS, North Africa, Asia and Middle East.

The new MRO center will support Turkish Airlines total MRO requirements other than Line, Light, and Technical Services and use ST Aerospace global network to access international customer base,

Kurtkoy Sabiha Gokcen International Airport is the second international airport in Istanbul coming after Yesilkoy Ataturk International Airport. The airport, which began operations at the beginning of 2001, is located at the Asian part of the city. It is approximately 20 km to the east of the Asian city centre and 45 km east of the European city centre. The airport, which gets its name from the first Turkish female fighter pilot, Sabiha Gökçen, contains both domestic and international terminals. Turkish Airlines has started domestic flights recently to four cities within Turkey directly from this airport.

Turkish Technic , a division of THY, is a reputable MRO center in Turkey with aircraft heavy and line maintenance, engine and component maintenance repair and overhaul capabilities for both Airbus, Boeing and Avro RJ fleet. Turkish Technic provides technical maintenance services both to THY’s and significant number of domestic and international customers’ fleets from its two hangars in its hub, Yesilkoy Ataturk International Airport, with nearly 3,000 employees.

For more information please visit http://www.turkishtechnic.com

Turkish Airlines (THY) is the flag carrier of Turkey founded in 1933. Today THY fleet consists of 80 aircrafts which serve 105 destinations worldwide. After the fleet enhancement with 51 aircrafts joining, THY fleet will consist of 110 aircrafts at the end of 2008 with an average fleet age below 6 (six). After this fleet enhancement, THY will own one of the youngest fleets in Europe. THY has more than 12,000 seats today and carried more than 12 million passengers in 2004. In addition to passenger transport, THY gives services about cargo transport, technical maintenance, technical and flight training activities both for its own fleet and domestic and international customers. THY announced US$79,7 m net profit after tax for 2004 with more than US$2 billion revenues. Headquartered in Istanbul, THY employs nearly 11,000 employees worldwide.

For more information please visit http://www.thy.com

ST Aerospace is the aerospace arm of ST Engineering. Operating a global MRO network with facilities in Asia Pacific, Europe and the U.S., it is the world’s largest airframe MRO with a global customer base that includes many of the world’s leading airlines, airfreight operators and military operators. ST Aerospace provides a full spectrum of maintenance and enineering services through its three business segments: Aircraft Maintenance & Modification (AMM), Component / Engine Repair & Overhaul (CERO), and Engineering & Materials Services (EMS). Its services include airframe, engine and component maintenance, repair and overhaul; engineering design and technical services; and aviation materials and management services, including Total Aviation Support. ST Aerospace has a global staff strength of more than 5,000 engineers and technical specialists.

For more information please visit http://www.staero.aero

ST Engineering is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. Headquartered in Singapore, the Group reported revenues of S$2.95 billion in FY2004. Its market capitalisation of about S$7 billion ranks it among the largest companies listed on the Singapore Exchange. ST Engineering has some 12,000 employees worldwide, and over 100 subsidiaries and associated companies in 15 countries and 22 cities.

For more information please visit http://www.stengg.com

For more information about this press release please contact:

TURKISH AIRLINES CORPORATE PROFILE
SINGAPORE TECHNOLOGIES AEROSPACE LTD CORPORATE PROFILE