Singapore Technologies Engineering Ltd (ST Engineering) today announced that its Aerospace sector has signed an agreement to provide CFM56-7B engine maintenance, repair and overhaul (MRO) services for the Boeing 737NGs belonging to Jet Airways and its subsidiary, JetLite. This agreement is an add-on to an earlier contract announced on 18 June 2015 which initially covers only a portion of the airlines' 737NG fleet. With the latest agreement, Jet Airways' and JetLite's entire fleet of 80 737NGs will be covered, upping the contract value from the initial US$350m (approximately S$478m) to a total of about US$700m (approximately S$957m).
As part of the contract, ST Engineering will provide an integrated suite of engine MRO solutions, including off-wing engine maintenance support, on-wing services as well as technical support. These services will be provided over a period of 6 years starting from 2019 at ST Engineering's engine MRO facilities located in Singapore and Xiamen, China.
Mr Vinay Dube, CEO of Jet Airways, said, "Jet Airway's partnership with ST Engineering's Aerospace sector dates back to 2009. Through this new agreement, we are happy to extend our relationship through 2024. Over the past decade we have built a trusting relationship with ST Engineering and we look forward to our continued association with them for many years to come."
Mr Lim Serh Ghee, President of ST Engineering's Aerospace sector, said, "This latest agreement from Jet Airways reinforces the strong partnership between the two companies which began when we started providing component maintenance services to their 737 Classic fleet. We are happy for the continuous opportunities given to us over the years that allowed us to expand our level of support beyond component services to cover airframe and engine services. Jet Airways can be assured that we will continue to maintain their aircraft with the highest standard in safety and quality to support their growth."
This contract is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.