SIA Engineering inks 10-year contract with France's Safran Aircraft Engines

Singapore

SIA Engineering Company on Friday said it has signed a 10-year agreement to provide engine maintenance services to Safran Aircraft Engines (SAE), a French manufacturer of aircraft and rocket engines.

To support these services, SIA Engineering will set up a dedicated facility which will start operations in 2020, the engineering arm of Singapore Airlines said in a regulatory update.

Through the agreement, SIA Engineering will contribute to the maintenance, repair and overhaul ramp-up of the LEAP engine, said SAE chief executive Olivier Andriès.

SIA Engineering will provide quick-turn and modification embodiment services for both CFM LEAP-1A and LEAP-1B engines.

LEAP-1A is one of two engine options for the Airbus A320neo family, while LEAP-1B is the exclusive powerplant for the Boeing 737 MAX.

The agreement is an extension of SIA Engineering and SAE's partnership, which began more than three years ago.

SIA Engineering said the transaction is not expected to have a material impact on the earnings per share or the net tangible assets per share of the company for the financial year ending March 31, 2020.

None of the company's directors of SIA Engineering has any interest, direct or indirect, in the transaction.

SIA Engineering shares closed on Friday at S$2.82, up one Singapore cent or 0.4 per cent.