SIA Engineering extends maintenance agreement with Hawaiian Airlines, inks new deal with MYAirline

MAINBOARD-LISTED SIA Engineering Co (SIAEC) : S59 0% announced in a bourse filing early on Wednesday (Oct 12) the extension of its partnership with Hawaiian Airlines to provide airframe maintenance services for the airline’s A330-200 aircraft.

Separately, the aircraft maintenance, repair and overhaul service provider said that it signed a 10-year agreement with Malaysian low-cost carrier MYAirline to provide support services for the latter’s fleet of Airbus A320 aircraft. 

The deals are not expected to have a material impact on the group’s earnings per share or net tangible assets per share for the year to Mar 31, 2023. 

Under the new agreement with Hawaiian Airlines, SIAEC will perform checks on 11 of the airline’s aircraft into 2027. Maintenance services will be undertaken by the group at its facility in Singapore. 

Based in Honolulu, Hawaiian Airlines currently operates a fleet of 24 A330-200 aircraft, serving 13 gateway cities in the United States and nine destinations throughout Asia and South Pacific. 

“This signing signifies the confidence that Hawaiian Airlines has in SIAEC’s technical strengths and capabilities,” said the group’s senior vice-president of base maintenance services Jeremy Yew.  “We will continue to deliver best-in-class on-time performance… and provide quality services and strong engineering support to our customers.”

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Meanwhile, under SIAEC’s new agreement with MYAirline, the group will provide component support coverage for aircraft and engine spares as well as repair and overhaul support services for the airline’s fleet of Airbus A320 aircraft. 

SIAEC executive vice-president of operations and chief sustainability officer Foo Kean Shuh said that the agreement, which has an option to extend for another two years, together with the group’s network of manufacturing partners and their recently acquired component shop SR Technics Malaysia, will provide the “highest levels of component support” to propel the airline’s growth. 

Stuart Cross, chief operating officer of MYAirline, added: “Having the weight and experience of SIAEC behind us strengthens (our) reach as the industry continues to recover from the pandemic.”

“As a new player in the industry, we look forward to SIAEC supporting our aggressive growth plans.”

Shares of SIAEC closed 2.3 per cent or S$0.05 lower at S$2.17 on Tuesday, prior to the announcement.