SINGAPORE Technologies Engineering (ST Engineering) on Wednesday announced that its aerospace unit, Singapore Technologies Aerospace (ST Aerospace), has sealed a six-year engine maintenance contract worth approximately US$350 million with India's second-largest airline, Jet Airways, and its subsidiary JetLite.
Under the contract, ST Aerospace will provide an integrated suite of engine maintenance, repair and overhaul (MRO) services for the CFM56-7B engines which power both Jet Airways' and JetLite's fleet of Boeing 737-Next Generation aircraft.
ST Aerospace will perform the off-wing engine maintenance support, on-wing services, as well as technical support, at its engine MRO facilities in Singapore and Xiamen, China.
Jet Airways CEO Cramer Ball said the airline has had a "long and dependable" relationship with ST Aerospace for maintenance support of its aircraft fleet.
This contract extends an existing 10-year CFM56-7B engine maintenance agreement signed in 2010. But the partnership between the two began 22 years ago when ST Aerospace first provided component services to Jet Airways' Boeing 737 Classic aircraft. Over the years, ST Aerospace has extended its service to provide airframe and engine services.
Jet Airways operates a fleet of 116 aircraft and offers flights to 73 destinations.
The contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
ST Engineering's counter last closed trading up 0.304 per cent at S$3.30 on Tuesday.