It will hold a 65% stake in the JV.
SIA Engineering Company (SIAEC) has sealed the deal with Airbus S.A.S. (Airbus) to form a Singapore-based joint venture (JV) that will provide airframe maintenance, cabin upgrade and modification services for Airbus A380, A350, and A330 aircraft to airlines in Asia-Pacific and beyond.
According to the SIAEC’s announcement, this will be its first time collaborating with a major aircraft manufacturer for airframe maintenance. SIAEC will hold a 65% equity stake in the JV, while Airbus holds the remaining 35%.
The JV will combine SIAEC’s maintenance experience with Airbus’ technical expertise as an airframe original equipment manufacturer. Airbus will also develop the JV as its Centre of Excellence for Airbus A380 and A350 Heavy Maintenance in Asia, thereby bolstering SIAEC’s service offerings in Singapore and the Philippines.
SIAEC asserts, though, that the JV is not expected to be accretive in the near term or have a material impact on SIAEC’s performance in the financial year.
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