SIA Engineering said on Friday it entered a deal with NokScoot Airlines to form a line maintenance joint venture in Thailand.
NokScoot will hold 51 percent of the joint venture, with SIAEC taking the remainder, the companies said in a filing to SGX on Friday.
The venture’s initial capital will be 63.68 million Thai baht, or around S$2.74 million, with the two companies paying a proportional amount based on their stakes, the filing said.
Operations for the venture will begin at Don Mueang International Airport (DMK) in Bangkok, Thailand, and then expand to other airports in the country, SIAEC and NokScoot said.
“The joint venture will allow SIAEC to support NokScoot’s growing fleet in Thailand and grow SIAEC’s existing network of Line Maintenance International (LMI) stations to 34 airports in seven countries outside Singapore,” Png Kim Chiang, CEO of SIAEC, said in the statement.
Yodchai Sudhidhanakul, CEO of NokScoot, said in the statement that the venture would provide the airline faster and more reliable line maintenance to support the carrier’s growth plan.
NokScoot is 49 percent owned by Scoot Tigerair, which is wholly owned by Budget Aviation Holdigns, a wholly owned subsidiary of Singapore Airlines, the filing said.