SIA Engineering has completed the acquisition of the Airbus’ shares in a Singapore-based MRO joint venture, Heavy Maintenance Singapore Services (HMSS).
The deal, which closed on 27 August, sees SIAEC acquire the remaining 35% of HMSS shares owned by Airbus services unit Airbus Services Asia-Pacific, at a book value of about S$900,000 ($659,000).
Consequently, HMSS will become a wholly-owned SIAEC subsidiary, and the joint venture agreement between SIAEC and Airbus will be terminated.
SIAEC says the decision to acquire the remaining shares came “following a joint review of the business” in light of the coronavirus outbreak, which has impacted the aviation industry severely. It did not elaborate further.
Established in 2016, HMSS provides A380 and A350 airframe maintenance, cabin upgrade and modification services to airlines in and around the Asia-Pacific region. A380 flying in the region has been curtailed following a collapse in travel demand. Singapore Airlines’ 19 examples are all in storage, amid an ongoing review of the future shape and size of its fleet and network.