The MRO arm of Singapore Airlines is acquiring the stake from Pos Aviation, the parent company of PAES, in a deal valued at MYR10.1 million ($2.44 million). Pos Aviation is the ground services arm of Malaysia’s postal delivery service provider Pos Malaysia.
SIAEC says the deal will grow the number of its international line maintenance stations to 46, covering nine countries including Singapore. In Malaysia, PAES has operations at Kuala Lumpur International airport and nine other stations.
Pos Avation’s website says that PAES is capable of providing line maintenance and segmented A-checks, as well as aircraft interior maintenance and engineering support services.
“This strategic partnership marks the entry of a Malaysian brand into the global MRO market, an important milestone for Pos Malaysia,” says Pos Malaysia’s group chief executive Syed Md Najib Syed Md Noor.
“We foresee an increase in our customer base and expansion of our market segments through enhanced product offerings, and this will contribute to the future growth of our revenue stream.”
SIAEC adds that it does not expect the investment in PAES will have a material impact on its earnings per share or net tangible assets per share for the financial year ending on 31 March.