SIA Engineering Company Secures $1B Deal From Singapore Airlines

SIA Engineering Company (SIAEC) has secured a comprehensive services agreement with Singapore Airlines Group (SIA) worth S$1.3 billion ($1 billion).

The new agreement starts from the new financial year (April 1) for a period of two years with the option to extend one more. This will override an existing agreement signed in April 2023.

The flag carrier is expected to take in 22 new aircraft in fiscal 2025/26 and the retirement of nine aircraft. This includes the full retirement of four remaining Boeing 737-800s.

SIAEC has received a steady stream of heavy checks although older aircraft are spending longer periods of time at the hangar due to supply chain constraints.

SIA said it has been taking proactive steps to mitigate the impact from the disruption by minimizing turnaround time by leveraging onshore repair capabilities such as SIAEC joint ventures with other engine manufacturers.

This is on top of other measures including building a “buffer stock” of critical spares and leveraging power of the hour relationships with major OEMs to gain priority access to spares.