ST Engineering said on Friday that its Aerospace sector signed an agreement to expand its contract to maintain Jet Airways’ and its subsidiary JetLite’s Boeing 737NG fleet.
The contract is to provide CFM56-7B engine maintenance, repair and overhaul (MRO) services for the carriers’ entire fleet of 80 737NGs, it said in a filing to SGX on Friday.
That was an add-on to an earlier contract, announced in 2015, which covered only a portion of the airlines’ 737NG fleet, it said, adding that raised the contract value to around US$700 million, or around S$957 million, from the initial value of around US$350 million, or approximately S$478 million.
Under the contract, ST Engineering will provide engine MRO services including off-wing engine maintenance support, on-wing services and technical support, over a period of six years starting from 2019 at the company’s facilities in Singapore and Xiamen, China, it said.
The contract wasn’t expected to have a material impact on ST Engineering’s consolidated net tangible assets per share and earnings per share for the current financial year, it said.