(Reuters) -Singapore’s aircraft maintenance services provider SIA Engineering on Wednesday signed a new services deal with flag carrier Singapore Airlines and expects revenue of S$1.14 billion ($857.92 million) over its three-year term.
The deal, which would replace the previous agreement SIA Engineering entered with Singapore Airlines in April 2019, broadly involves the maintenance, repair and overhaul of the airline’s fleet coupled with management services.
According to SIA Engineering’s latest annual report, Singapore Airlines owns about 77.5% stake in SIA Engineering, making it the company’s largest shareholder.
The agreement, which commences on April 1, has a tenure of two years with the option of being extended by a year.
($1 = 1.3288 Singapore dollars)
(Reporting by Roushni Nair in Bengaluru; Editing by Krishna Chandra Eluri)
