OREANDA-NEWS. January 9, 2013. As part of UTair Aviation's cost optimization program, the airline has concluded an agreement with the British TES Aviation Group for the management of the airline’s engine stock.

Total Engine Support (TES) will provide monitoring of the operational and performance status of power plants in UTair aircraft, planning regular and unscheduled maintenance operations, choosing subcontractors for service and repairs, purchasing spare parts and securing leasing for engines.

The outsource company will manage a stock of 117 engines with the aim of reducing operational costs and providing optimal service schemes for high flight regularity.

“The partnership with TES, the market leader in the field of power plant maintenance management, will contribute to helping UTair achieve objectives in the area of cost optimization management,” said UTair CFO Igor Petrov. “Progressive introduction of fundamentally new schemes for engine stock maintenance will help UTair realize a more effective control in this activity as well as in forecasting and planning expenditures.”

Stephen Taylor, senior vice president of sales and marketing at TES, adds: “We are honored to work with UTair's professional and prudent team and to establish important partnerships for the effective management of engine stock. UTair strives for success, and we equally intend to facilitate UTair in achieving key goals in the management of residual value in assets and for reducing operating costs. We look forward to working with the airline.”

UTair Aviation ranks among the top three Russian airlines. In 2011 UTair aircraft transported 6,750,425 passengers. In the period from January-November 2012 UTair Group serviced 28.2% more passengers than for the same period of 2011. In 2012 the airline expects an increased transport volume of up to 10 million passengers. The airline operates more than 200 fixed wing aircraft and performs flights to 110 destinations in Russia and aboard. The airline maintains its central hub at Vnukovo International Airport in Moscow, from which it performs 100 flights daily.

TES is the market leader in providing aircraft engine service with a total volume of more than 900 engines of all types from around the world serviced annually with a value of USD 3 bln. TES offers innovative solutions to clients in the spheres of servicing engine stock and is the largest and the most experienced engineering consultancy in the field of engine maintenance and service solutions enriched by an increasing stock of engines available for lease and qualitatively reconditioned spare parts. TES is equipped with the knowledge and experience to considerably decrease expenses on repair operations and the total cost of operations. TES leverages its partnerships with DVB bank, the Mitsubishi Corporation and the Development bank of Japan for the support of the UTair development plan taking into account the interest investors will have in reliable and consistent operators with an effective engine stock management system.