SINGAPORE, 6 October 2017 - Mainboard-listed SIA Engineering Company Limited (“SIAEC”) and Air India Engineering Services Limited (“AIESL”), a wholly-owned subsidiary of Air India Limited providing maintenance, repair and overhaul (“MRO”) services, entered into a non-binding Memorandum of Understanding (“MOU”) to establish a business collaboration to offer MRO services in India today.
Pursuant to the MOU, SIAEC and AIESL will collaborate to offer line maintenance and ancillary services at various airports in India as well as engineering training, inter alia. Both companies will be able to offer a wider spectrum of services and customised packages to domestic and foreign airlines operating in and out of India.
The collaboration will draw upon AIESL’s extensive infrastructure and resources within India and their local knowledge and expertise in the India market, and SIAEC’s comprehensive MRO service offerings and maintenance capabilities including the offerings and capabilities for new-generation aircraft.
Mr Png Kim Chiang, Chief Executive Officer of SIAEC, said: “SIAEC is delighted to enter into this collaboration with AIESL to expand into the India market. This collaboration will allow SIAEC to offer our integrated MRO and Technical Support solutions to airline customers.”
Mr HR Jagannath, Chief Executive Officer of AIESL, said: “We are pleased to enter into this collaboration with SIAEC which will contribute to enhancing our services to existing airline customers and expanding our market exposure to domestic and foreign airlines operating in and out of India. This collaboration will complement AIESL's efforts to become a leading one-stop MRO service provider in India.”
The transaction is not expected to have a material impact on the financial performance of SIAEC or AIESL in FY2017/18. None of the Directors of SIAEC or AIESL has any interest, direct or indirect, in the transaction.