SIA Engineering signs $857 mln services deal with Singapore Airlines (updated)

SIA Engineering

29/03/2023 11:43

(Adds further details on the deal, background)
       March 29 (Reuters) - Singapore's aircraft maintenance
services provider SIA Engineering  SIAE.SI  on Wednesday signed
a new services deal with flag carrier Singapore Airlines
 SIAL.SI  and expects revenue of S$1.14 billion ($857.92
million) over its three-year term. 
    The deal, which would replace the previous agreement SIA
Engineering entered with Singapore Airlines in April 2019,
broadly involves the maintenance, repair and overhaul of the
airline's fleet coupled with management services.
    According to SIA Engineering's latest annual report,
Singapore Airlines owns about 77.5% stake in SIA Engineering,
making it the company's largest shareholder. 
    The agreement, which commences on April 1, has a tenure of
two years with the option of being extended by a year. 
    
($1 = 1.3288 Singapore dollars)

 (Reporting by Roushni Nair in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Roushni.Nair@thomsonreuters.com;))