SIA Engineering Company (SIAEC) and Singapore Airlines (SIA), have signed a comprehensive Services Agreement which will supersede the previous Services Agreement entered into with SIA in April 2015.
The new agreement, commencing April 1, 2019, is for a term of 2 years, with an option to renew for a further period of 2 years. SIAEC’s support of SIA’s fleet covers a broad spectrum of maintenance, repair and overhaul (MRO) and fleet management support services. The agreement (if renewed after the first 2 years) is expected to yield a labour revenue of S$1.3-1.4 billion over the 4-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.
