News
SIAEC signs US$363 million deal with SilkAir and LoI with Cebu Pacific
May 4th 2018
SIA Engineering (SIAEC) has signed a S$484 million (US$363 million) MRO deal with SilkAir to cover the airline’s incoming fleet of 37 B737 MAXs. Read More »
The new deal is for 12 years, with an option to renew for five years. It builds on previous service agreements between SIAEC and SilkAir for servicing of the regional carrier’s existing A320ceo and B737NG fleets.
“SIAEC and SilkAir have been working very closely and successfully on SilkAir’s A320 and B737NG aircraft. This new deal symbolizes the continued trust SilkAir has in us. We will deliver the high level of quality and service expectations of SilkAir covered in this contract,” said SIAEC CEO, Png Kim Chiang.
Separately, in a stock exchange filing, SIAEC announced the signing of a Letter of Intent (LoI) with Cebu Pacific Air to explore expansion of their joint venture MRO businesses in the Philippines, Aviation Partnership Philippines Corporation (APPC) and SIA Engineering Philippines (SIAEP).
The partners are pledging US$15-$20 million to expand the MROs’ capabilities, including hangars and training academy services.
APPC provides line maintenance services at Manila, Cebu, Davao and Clark. SIAEC owns 51% of the shares and Cebu Pacific the remainder. SIAEP also provides heavy and line maintenance in Clark. SIAEC holds a 65% stake in that company.
Cebu Pacific’s 64 aircraft are regular customers at both MROs. This year, the LCC hoped to carry 22 million passengers, an increase of 12% year-on-year. Cebu Pacific is planning to add four more A321ceo and 32 A321neo aircraft to its fleet by 2022.
