SIA Engineering Company (SIAEC) and Cebu Pacific Air have signed a letter of intent to explore options to expand their joint venture maintenance businesses.
SIAEC says in a stock exchange statement that the two companies "will explore the feasibility of potential growth opportunities for its two joint venture companies in the Philippines through the expansion of line maintenance operations, growth of hangar facilities and expansion of training academy services."
The two companies forecast that an investment of $15 million to $20 million will be needed to fund those growth opportunities.
Both parties have two maintenance joint ventures based in the Philippines: Aviation Partnership Philippines Corporation (APPC) and SIA Engineering Philippines (SIAEP).
APPC provides line maintenance services at Manila, Cebu, Davao and Clark, as well as other secondary airports in the Philippines. It is 51% owned by SIAEC, with Cebu Pacific holding the remaining shares.
Clark-based SIAEP, meanwhile, has three hangars and provides heavy maintenance aircraft checks and line maintenance services. SIAEC owns 65% of the venture.