SIA Engineering Company (SIAEC) S59 has signed a comprehensive services agreement with Scoot, the low-cost subsidiary of Singapore Airlines (SIA) C6L .
The agreement comes just two days after SIAEC signed a similar agreement with SIA on March 29.
The new two-year agreement with Scoot will commence on April 1 with an option to extend for an additional year.
SIAEC will support Scoot through its maintenance, repair and overhaul (MRO) and fleet management support services.
The agreement is expected to yield a labour revenue of $120.8 million over the three-year term. It is not expected to have a material impact on SIAEC’s net tangible assets (NTA) per share or EPS 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.
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Shares in SIAEC and SIA closed at $2.25 and $5.73 respectively on March 31.
