SIA Engineering renews SilkAir contract for S$197m

SIA Engineering Co has renewed its services contract with SilkAir for S$197 million, the aircraft servicing company announced on Friday.

The contract lasts for five years, with an option to extend it for another year.

The agreement will cover maintenance, repair and overhaul as well as fleet management services for SilkAir's fleet of A319 and A320 aircraft. The contract is not expected to have any material impact on SIA Engineering's financial performance in fiscal 2016.

Shares of SIA Engineering closed at S$3.88 on Friday, up by 1.3 per cent or five cents, before the renewal was announced.