LE BOURGET, FRANCE - SIA Engineering Company (SIAEC) and GE Aviation will set up a joint venture in Singapore to provide a range of maintenance, repair and overhaul (MRO) services for the GE's 90 and 9X aircraft engines.
GE will have a 51 per cent equity stake and SIAEC will hold the remaining 49 per cent in the joint venture which will handle SIA Group as well as third party MROs, and is subject to regulatory approvals, the companies said in a press released issued on Wednesday (June 21).
GE engines exclusively power aircraft like Boeing 777-300ER, 777-200LR and 777X aircraft.
The partnership came about after Singapore Airlines' (SIA) announcement in February 2017 of its intention to purchase 39 Boeing widebody aircraft valued at US$13.8 billion, which includes 20 777-9s which are powered by GE engines. SIA is also a major operator of 777-300ERs.
"This partnership with GE, which is a significant strategic move for SIAEC, adds to our growing portfolio of joint ventures with the world's leading aircraft and engine manufacturers," said Mr Png Kim Chiang, SIAEC's chief executive officer.
The joint venture will establish a state-of-the-art facility combining advanced technologies and lean practices with digitization and data analytics to enhance productivity, the release added. Based in Singapore, it will also present opportunities for Singapore, in terms of job creation, training and additional service offerings at the Singapore hub.
"The new Singapore MRO joint venture will ensure GE90 and GE9X operators have access to the best service and support for their engines and will further strengthen GE Aviation's presence in Singapore," said Mr David Joyce, President and chief executive officer of GE Aviation.
The joint venture is not expected to have a material impact on the financial performance of SIAEC in FY2017/18.