SIA Engineering Company signs $250 million services agreement with SIA Cargo
Dec 26, 2016: SIA Engineering Company (SIAEC) has renewed its comprehensive services agreement with Singapore Airlines Cargo (SIA Cargo). The existing agreement with SIA Cargo expires in 2016.
The new agreement, commencing January 1, 2017, is for a term of 3 years, with options to renew for 3 years and a further period of 2 years.
The company’s support of the SIA Cargo’s freighter fleet covers a broad spectrum of maintenance, repair and overhaul, and support services.
This agreement is expected to yield revenue of up to $250 million over the 8-year term.
Png Kim Chiang, SIAEC’s chief executive officer, said, “SIAEC and SIA Cargo have a strong and mutually beneficial relationship built over many years. We have worked closely with SIA Cargo to uphold its engineering excellence and optimise its operating efficiencies.”
Chin Yau Seng, president, SIA Cargo, said, “Over the years, SIAEC has proven to be a dependable partner who understands and shares our commitment to service and operational excellence. We are pleased to renew our longstanding service partnership with SIAEC through this new contract.”
As the new Services Agreement re-establishes an existing agreement, it is not expected to have a material impact on SIAEC’s financial performance in FY2016-17.
None of the Directors of SIAEC has any interest, direct or indirect, in the transactions.