Boeing (NYSE: BA) is enhancing its support to customers in Southeast Asia through a joint venture in Singapore with SIA Engineering Company (SGX: SIAEC). Boeing and SIAEC signed an agreement today to form Boeing Asia Pacific Aviation Services, which will provide industry-leading engineering, spare parts, and repair and maintenance services for Boeing airplanes.
"Boeing is focused on giving our customers superior support and every competitive advantage in the marketplace," said Boeing Commercial Airplanes president and CEO Ray Conner. "Through this joint venture, customers of Boeing GoldCare and other operators of Boeing airplanes will now have access to an even broader range of world-class support and services, competitively priced and located in one of aviation's fastest-growing markets. We look forward to a closer partnership with SIA Engineering Company, which is widely recognized for outstanding quality and customer service, as part of our ongoing efforts to give our customers a competitive edge in the marketplace."
Boeing has signed contracts for maintenance and engineering services to cover Scoot's fleet of 20 787 Dreamliners currently on order and Singapore Airlines' fleet of 27 777-300ERs. Services for Scoot and Singapore Airlines will be provided through the new venture, which combines Boeing engineering management with repair and maintenance services from SIAEC.
"The joint venture will be a game changer for the airline industry," said William Tan, chief executive officer, SIAEC. "It will set new standards for aircraft reliability and utilization. It will also make fleet management solutions far more accessible, customizable and affordable for airlines. Aircraft ownership will be made much simpler. SIAEC is delighted to partner Boeing in changing the future of aircraft fleet management for the industry."
More than 50 airlines worldwide – covering approximately 1,700 airplanes – have signed long-term agreements with Boeing for a suite of customizable service offerings that include engineering, materials and maintenance solutions. This suite of services provides airlines with predictable maintenance costs, managed to measurable performance standards.
Boeing Asia Pacific Aviation Services will offer customers a wide range of aviation services. Boeing will hold a 51 percent equity stake in the joint venture, with the remaining 49 percent owned by SIAEC. The joint venture will service 737s, 747s, 777s and 787s.
Other terms of the transaction were not disclosed. Formation of the joint venture is expected to occur by the end of 2014, subject to customary closing conditions and regulatory approvals.
Source: The Boeing Company (NYSE: BA)
Date: Jul 9, 2014