Boeing, SIA Engineering to shut down Asia-Pac joint venture

BOEING Asia Pacific Aviation Services (Bapas), a joint venture between Boeing Singapore and Singapore-listed SIA Engineering : S59 0%, intends to cease operations in August, SIA Engineering said in a bourse filing on Tuesday (Jul 19). 

SIA Engineering said the decision was by mutual agreement of the shareholders due to “challenges arising from the changing business environment”.

Bapas was incorporated in Singapore in October 2015 to provide fleet-management services for airline operators of the 737, 747, 777 and 787 aircraft in the region. 

Boeing Singapore owns 51 per cent of shares in the capital of Bapas, and SIA Engineering, the remaining 49 per cent. 

The cessation of the business operations of Bapas is also not expected to have a material impact on the net tangible assets per share or the earnings per share of SIA Engineering for FY2022/23. 

Shares of SIA Engineering closed flat at S$2.43 on Tuesday before the announcement.

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