SIA Engineering signs fresh S$1.14 billion services agreement with SIA

AIRCRAFT maintenance services provider SIA Engineering Company (SIAEC) has signed a fresh services agreement with flag carrier Singapore Airlines that is expected to yield the former a labour revenue of S$1.14 billion over a three-year term.

Announcing this on Wednesday (Mar 29), SIAEC, which supports the SIA fleet on a spectrum of maintenance, repair and overhaul (MRO) and fleet management support services, said this agreement supersedes the previous one entered into in April 2019.

The new agreement will start on Apr 1, 2023, and is for a term of two years. It comes with an option to extend for a further one-year period.

The transaction is not expected to have a material impact on the net tangible asset per share or earnings per share of the SIAEC group for its financial year ending Mar 31, 2024.

The company, meanwhile, disclosed that SIAEC director Goh Choon Phong sits on the board of SIA. No other directors and controlling shareholders has any interest, direct or indirect, in the transaction, other than through their shareholdings in SIAEC, it added.

Shares of SIAEC closed 0.9 per cent higher at S$2.24 on Wednesday.