China Eastern to Buy Out STARCO Stake for $96 Million

China Eastern Airlines (MU, Shanghai Hongqiao) will become the sole owner of maintenance, repair and overhaul provider STARCO after agreeing to acquire the remaining 49% stake held by joint-venture partner ST Engineering. The move comes just one year after both companies renewed their partnership, but they now say ending the venture will allow each to “focus on their own growth plans.”

ST Engineering confirmed it will receive CNY680.5 million (USD95.7 million) in total cash consideration for its stake. The payment will occur in two tranches: CNY506.7 million (USD71.3 million) upon completion of the divestment and CNY173.8 million (USD24.5 million) by December 31, 2026, backed by a bank guarantee.

Founded in 2004, STARCO provides airframe MRO services at China Eastern’s main hubs at Shanghai Hongqiao and Shanghai Pudong airports. ST Engineering said the sale aligns with its strategy to streamline its global MRO footprint, while maintaining operations in China through facilities in Guangzhou, Xiamen and Ezhou.

China Eastern Airlines Technic, the carrier’s in-house MRO arm, continues to offer base maintenance across Kunming Changshui, Lanzhou, Qingdao Jiaodong, Taiyuan and Xi’an Xianyang, according to ch-aviation MRO data.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com