SIA Engineering Company Limited (SIAEC) has announced the renewal of its comprehensive Services Agreement with Singapore Airlines (SIA).
“The existing Services Agreement with SIA , the validity of which was till 2015 has been renewed. The new agreement, brought into force with effect from 1 April 2015, is for for a term of 3 years, with options to renew for 3 years and a further period of 2 years.” SIAEC’s support of the SIA fleet covers a broad spectrum of maintenance, repair and overhaul (MRO) and fleet management support services. The agreement is expected to yield $2.6-2.9 billion in labour revenue over the 8-year term.
SIAEC’s Chief Executive Officer, Mr Png Kim Chiang said: “We value the strong commercial relationship and synergies we share with our anchor customer, SIA. The renewal of this Services Agreement reaffirms our commitment to providing high quality and comprehensive engineering support to the Airline. We will continue to work closely with SIA to uphold its engineering excellence.”
“SIA is focused on upholding the highest engineering standards of aircraft safety and reliability in its operations, with cabin excellence a hallmark of SIA’s reputation and success. The renewal of this Agreement underlines our confidence in SIAEC’s outstanding engineering capability to achieve these objectives,” said Mr Mervyn Sirisena, Senior Vice President Engineering, Singapore Airlines.
As the new Services Agreement re-establishes an existing arrangement, it is not expected to have a material impact on SIAEC’s financial performance in FY2015/16. None of the Directors of SIAEC has any interest, direct or indirect, in the transaction.
