Thursday, July, 25, 2024 09:18:59

SIA Engineering’s shares were trading at S$2.49, up by three Singapore cents.

SIA Engineering Company and NokScoot Airlines Co have announced a line maintenance joint venture based in Thailand. The joint venture will have an initial registration capital of about 63.7 million baht ($2.7 million).

According to Business Times, SIA engineering will hold an equity stake of 49 percent worth 31.2 million baht in JV, and NokScoot will hold remaining 51 percent of equity stake worth 32.5 million baht, subject to regulatory approvals.

Operations of JV will start in Don Mueang International Airport, and later will expand to other airports in Thailand.

The material impact, by new joint venture, on the earnings per share or the net tangible assets per share of SIA Engineering for the FY 2019 would be negligible.

Png Kim Chiang, Chief Executive Officer, SIA Engineering, reportedly said that the new joint venture will help SIA Engineering (SIAEC) to support growing fleet of NokScoot in Thailand and expand SIAEC’s existing network of line maintenance international stations to 34 airports in 7 countries outside Singapore.

Yodchai Sudhidhanakul, Chief Executive Officer, NokScoot, noted that the joint venture is a substantial milestone for NokScoot. It will help in providing more reliable and faster line maintenance services to support company’s growth plan.

SIA Engineering’s shares were trading at S$2.49, up by three Singapore cents.

For the record, NokScoot is a subsidiary of Singapore Airlines (SIA), being 49 percent owned by Scoot Tigerair, which is solely owned by SIA’s subsidiary Budget Aviation Holdings. Ng Chin Hwee, Director, SIA Engineering, holds the position of a representative of SIA on the board of NokScoot. The initial capital of airline was 2 billion baht.

For the record, SIA Engineering company is a Singapore-based company, which maintains, repairs and overhauls the aircrafts in Asia-Pacific, and is a part of Singapore Airlines Group.