Quickstep (ASX:QHL) awarded Jetstar engine maintenance contract, shares jump

• Quickstep Holdings (QHL) wins a “significant” long-term maintenance contract for the V2500 Engine Nacelle by Jetstar Airways
• The company says it led the international tender process in partnership with Triumph Aviation Services Asia and the pair have been awarded a three-year contract
• The contract covers scheduled and unscheduled maintenance work on the V2500 Engine Nacelle including maintenance services on its engine inlet cowl, thrust reversers and exhaust nozzle
• The contract value based on Quickstep’s work scope and Jetstar’s forecasts set out in the tender package is anticipated to be in the $30 million-$35 million revenue range
• QHL shares 11.2 per cent higher at 64.5 cents

Quickstep Holdings (QHL) shares have risen after the company announced it had been awarded a “significant” long-term maintenance contract for the V2500 Engine Nacelle by Jetstar Airways.

The company said it led the international tender process in partnership with Triumph Aviation Services Asia and the pair were awarded a three-year contract.

The contract covers scheduled and unscheduled maintenance work on the V2500 Engine Nacelle including maintenance services on its engine inlet cowl, thrust reversers and exhaust nozzle.

Quickstep said this type of work had not been undertaken previously in Australia by an independent maintenance, repair and overhaul provider.

The Jetstar Airbus A320 fleet that operates across the Asia-Pacific region contains the V2500 Engine Nacelle.

The contract value based on Quickstep’s work scope and Jetstar’s forecasts set out in the tender package was anticipated to be in the $30 million-$35 million revenue range.

Quickstep CEO Mark Burgess said the Australian aviation sector “should see a strong rebound from the pandemic during 2022”.

“Our Tullamarine facility is well placed to offer highly competitive aftermarket solutions both domestically and across the Asia-Pacific region. The maintenance contract with Jetstar is an early demonstration of the capacity, capability and long-term opportunity this new line of business offers to Quickstep.”

Quickstep said it would incur capital expenditure of about $1.3 million to support the contract, which would be funded through existing cash reserves and facilities.

Engine maintenance services under the Jetstar contract were expected to commence this month.

QHL shares were trading 11.2 per cent higher at 64.5 cents at 12:57 pm AEST.