SIA Engineering (SIAEC) has renewed and expanded a services agreement with parent company SIA and low-cost operator Scoot.
The new agreement, valued at S$1.3 billion ($1 billion), was effective 1 April and will last for a two-year period, with an option to extend for another year.
It will cover a “broad spectrum” of MRO and fleet management support, says SIAEC, which does not elaborate further.
The agreement supercedes a similar deal signed in 2023, which also spanned two years, but was valued at around S$121 million.
For the year ended 31 March, SIAEC saw a significant improvement in its profitability on the back of “stable growth” in MRO demand.
The MRO unit of SIA reported a full-year operating profit of S$14.6 million, compared to the S$2.3 million profit in the previous financial year.
In its outlook, SIAEC says the strong MRO demand is expected to continue in the near-term. The impact from the US government’s tariff policies are also “currently limited”.
“There could be potential second-order, indirect effects, which are now difficult to assess but measures are already being put in place to mitigate the potential impact of higher tariffs,” SIAEC adds.
