SIA Engineering S59 Company (SIAEC) S59 has signed a comprehensive services agreement with Singapore Airlines C6L (SIA) C6L on March 29.
The agreement will commence on April 1 and will last for two years with an option to extend for a further period of one year. The new agreement will also supersede the previous agreement entered into with SIA in April 2019.
The agreement will see SIAEC supporting SIA’s fleet of aircraft through services such as maintenance, repair and overhaul (MRO) and fleet management support. The agreement is expected to yield a labour revenue of $1.14 billion, including the one-year extension.
The transaction is not expected to have a material impact on the net tangible assets (NTA) per share or the earnings per share (EPS) of SIAEC for the FY2024 ending March 31, 2024.
Other than Goh Choon Phong, a director of SIAEC who also sits on the board of SIA, none of the directors and controlling shareholders of SIAEC has any interest in the transaction.
Shares in SIAEC and SIA closed at $2.24 and $5.75 respectively on March 29.
