SIA Engineering enters S$1.4 billion service agreement with Singapore Airlines

Singapore Airlines plane on the ground at Singapore’s Changi Airport; taken November 2018.Singapore Airlines plane Changi Airport.

SIA Engineering said on Monday it signed a comprehensive service agreement with Singapore Airlines covering a two-year period with an option to renew for another two years.

If the agreement is renewed after the first two years, it’s expected to yield labor revenue of S$1.3 billion to S$1.4 billion over the four-year term, SIA Engineering said in a filing to SGX after the market close on Monday.

“SIAEC’s support of the SIA’s fleet covers a broad spectrum of maintenance, repair and overhaul (MRO) and fleet management support services,” the filing said.

The agreement will supersede the aircraft maintenance company’s previous agreement with SIA, which it entered in April 2015, the filing said.

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