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SilkAir inks 12-year services contract with SIAEC for 737 MAX fleet

MAINBOARD-listed SIA Engineering Company (SIAEC) has inked a comprehensive services agreement with regional airline SilkAir worth S$484 million for its fleet of 37 Boeing 737 MAX aircraft.

The new agreement for the single-aisle aircraft is for a term of 12 years, with an option to renew for a further period of five years. It will cover a wide range of maintenance, repair and overhaul (MRO), and support services.

SIAEC currently has existing services agreements with SilkAir for its Airbus A320 and Boeing 737-800 aircraft. Both SIAEC and SilkAir are owned by the Singapore Airlines Group.

SIAEC's chief executive Png Kim Chiang said: "SIAEC and SilkAir have been working very closely and successfully on SilkAir's Airbus A320 and Boeing 737NG aircraft. This new agreement symbolises the continued trust that SilkAir has placed on us, and we will deliver to the high level of quality and service expectations of SilkAir in our provision of the services covered in this contract."

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SilkAir's chief Foo Chai Woo said: "At SilkAir, we place the safety and reliability of our flight operations as our main priority. As our service partner, SIAEC has provided dependable services and achieved excellent operational efficiencies for our Airbus A320 and Boeing 737NG fleet."