SIA Engineering signs $1.4bn services agreement with Singapore Airlines

Lauren Eldershaw
By Lauren Eldershaw April 2, 2019 09:16

SIA Engineering signs $1.4bn services agreement with Singapore Airlines

SIA Engineering (SIAEC) has signed a comprehensive Services Agreement with Singapore Airlines (SIA), which will supersede the previous Services Agreement entered into with SIA in April 2015.

The new agreement, commencing 1 April 2019, is for a term of two years, with an option to renew for a further period of two years. SIAEC’s support of the SIA’s fleet covers a broad spectrum of maintenance, repair and overhaul (MRO) and fleet management support services. The agreement (if renewed) is expected to yield a labour revenue of $1.3-1.4 billion over the four-year term.

The transaction is not expected to have a material impact on the net tangible assets per share or the earnings per share of the SIAEC Group in FY2019/2020.

Lauren Eldershaw
By Lauren Eldershaw April 2, 2019 09:16