Melbourne, August 22, 2008 - John Holland Aviation Services (JHAS) has today announced the signing of a new Alliance Agreement to provide heavy maintenance services to Virgin Blue. The five-year agreement will see much of the heavy maintenance on Virgin Blue's fleet of new Boeing 737 Aircraft undertaken at the JHAS facilities at Melbourne Airport.

The new contract is the first of its kind in the Australian commercial aviation sector. As part of the new arrangement, the two companies will work closely together to achieve rapid aircraft turnaround and build upon Australia's world renowned aviation safety record.

"The John Holland Group is an unrivalled leader in relationship contracting with over 50 per cent of our current projects being delivered through alliance style agreements," said Andrew Henderson, General Manager, John Holland Aviation Services. "This new contract has been developed by applying these principles to the aviation industry. We are excited at the opportunity to develop this unique solution and the opportunity to play our part in ensuring Virgin Blue continues to build upon its excellent safety record".

Virgin Blue's Engineering Operations General Manager Brian Sharp welcomes the opportunity to support the Australian aviation industry.

"Engaging a strong, flexible and independent Australian maintenance provider aligns with the strategic engineering and maintenance needs of our business. We see many benefits of an alliance approach, with clear objectives and transparency of performance ensuring we can effectively manage the continued growth of our airline."

The announcement caps a period of strong growth for JHAS in Melbourne, including new work from both the Civil and Defence aviation sectors. Since June, 2007, JHAS has more than doubled the number of Aircraft Maintenance Engineers in its workforce, in addition to launching a number of new apprenticeship and trainee schemes.

"Continued growth in our aircraft maintenance business enhances John Holland's reputation as Australia's most diversified contracting, engineering and services provider," said David Stewart, John Holland's Group Managing Director. "This new work highlights the scope of new business opportunities for JHAS in the global aviation sector."

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For further media information please contact:

Richard Baker 
External Communications Manager
Tel: 02 8572 3157
Fax: 02 9552 2711 
Mobile: 0400 809 116
Email: richard.baker@jhg.com.au