Business & Finance Club - Riyadh: Saudi Nastech, the technical arm of the National Air Services (NAS) Group, signed an agreement in strategic cooperation with Lufthansa Technik — the world's leading independent provider of maintenance, repair and overhaul (MRO) services for aircraft, engines and components.

This agreement, signed last Wednesday in Riy-adh, aims to develop the technical capability of Nastech and enhance its services to sister concerns such as Nasair, NASJets and other projects managed by Nas.

"The agreement is expected to boost Nastech's ability to serve other potential aviation companies within the region, under the supervision of our strategic partner, Lufthansa Technik, either at our locations in the kingdom or through technical training of our staff members at the Lufthansa Technik premises in Hamburg, Germany," Ayed Al Jeaid, chairman of Nas, said after the signing ceremony.

The ceremony was also attended by Sulaiman Bin Abdullah Al Hamdan, Nas chief executive officer; August Wilhelm Henningsen, chairman of the executive board of Lufthansa Technik, and Walter Heerdt, senior vice-president of marketing and sales at Lufthansa Technik.

Al Jeaid also pointed out that the agreement will offer Saudi youths an opportunity to become acquainted with the knowhow of advanced airline technology, since opportunities in the regional aviation sector were limited to the public sector.

The agreement covers two phases of implementation. The first phase will take about three years and focus on ways to enhance joint cooperation between the two sides, transfer and resettlement aspects of knowledge and advanced technology in the field of engineering and aircraft maintenance.

The second phase aims at total technical integration between the two companies in Saudi Arabia after Lufthansa is convinced of Nas' capability to maintain aircraft in line with Lufthansa's standards, Al Jeaid said.

Stellar reputation

Henningsen said his company was prompted to enter into technical cooperation with the Saudi company because of Nas' reputation and performance over the last 10 years as a leader in private aviation in Saudi Arabia.

"Nas management has an ambitious vision and Lufthansa Technik is confident of its successful implementation," Henningsen said.

"Through this cooperation, we are confident of jointly increasing our market share," he added.

Al Hamdan said: "This agreement is the result of negotiations between the two companies for more than two years and we are proud and happy with this cooperation with Lufthansa Technik, that shows Lufthansa's respect for the ability of Nas to expand and absorb such advanced technology."

The first phase includes fulfilment of three clauses. The first clause covers Lufthansa Technik maintaining Nas aircraft engines. The second clause includes extension of "Lufthansa Technik's maintenance of aircraft equipment and instruments" for 10 years. The third clause relates to the engineers and technical advisers from Lufthansa Technik overseeing the implementation by Nastech of aircraft maintenance.