SINGAPORE - SIA Engineering Co has renewed its services contract with SilkAir for S$197 million, the aircraft servicing company announced on Friday.

The contract lasts for five years, with an option to extend it for another year.

The agreement will cover maintenance, repair and overhaul (MRO) as well as fleet management services for SilkAir's fleet of A319 and A320 aircraft.

The contract is not expected to have any material impact on SIA Engineering's financial performance in fiscal 2016.

"This new agreement reaffirms the strong synergy and excellent relationship between SIAEC and SilkAir," said SIAEC CEO Png Kim Chiang.

"With MRO experience built up on the Airbus fleets over a span of three decades, supported by a network of 34 line maintenance stations across seven countries, our fleet management solutions offer airline customers seamless technical support and increased operating efficiencies."