SIA Engineering Company (SIAEC) has entered into a joint venture agreement with Air Innovation Korea (AIK), to form a line maintenance joint venture based in the Republic of Korea. Under the agreement, SIAEC will hold an equity stake of 51% in the joint venture, with AIK taking the remaining 49% stake. The agreement and services to be provided are subject to the receipt of regulatory approvals.
The joint venture company will have an initial registration capital of KRW 4,772,000,000, or approximately S$5,525,212. SIAEC will subscribe for KRW 2,433,720,000, or approximately S$2,817,858, in cash and AIK will subscribe for KRW 2,338,280,000, or approximately S$2,707,354, in cash.
This partnership supplements the Aero-K Airlines’ (Aero-K) A320ceo/neo fleet Inventory Technical Management Programme where SIAEC will support the airline for component pooling as well as repair and overhaul management services commencing in March 2020.
The services will be provided for a period of six years for each fleet type. Aero-K, a wholly owned subsidiary of AIK, plans to commence operations in March 2020 from its base in Cheongju International Airport in the Republic of Korea. Aero-K is expected to operate four A320 aircraft by the end of 2020, growing to 15-20 aircraft within five years. ( US$1.00 = KRW 1,185.38 at time of publication.)
