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Quickstep Holdings has proposed the divestment of Quickstep Aerospace Services, the company’s maintenance, repair, and overhaul (MRO) arm, cauterising ongoing operational losses from the business unit.
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According to a recent filing with the ASX, the aerospace engineering, manufacturing, and aftermarket services provider outlined it was looking to “sell all or a majority” share of the business unit to a global entity with a focus on the MRO market.
The proposal comes following ongoing operational losses and negative cashflows stemming from Quickstep Aerospace Services (QAS) arising from poor market conditions within the commercial airline MRO market.
Quickstep Aerospace Services will continue to trade despite the announcement, the company has confirmed.
QAS provides maintenance, repair, and overhaul work to Defence and commercial aircraft, having acquired the assets of Boeing Australia Component Repairs in February 2021.
Quickstep defended the original acquisition, noting it was aligned with their objective of growing their defence sustainment business and grasping new opportunities in the commercial market following the pandemic.
The announcement comes months after the company informed the ASX it would reduce headcount in their direct production and operational support units by 20 per cent each as demand for F-35 components slowed.
Meanwhile, the aerospace composite business is also expected to reduce staff within its corporate support teams by 35 per cent.
The engineering development and services business units will not be impacted by the announcement.
