SIA Engineering Company Ltd: Renewal of services agreement with SilkAir
- SIA Engineering Company Limited (SIAEC) announced last Friday the renewal of its services agreement with SilkAir, worth S$197m.
- The new five-year (with one-year extension option) agreement covers maintenance, repair and overhaul (MRO) and fleet management services for SilkAir’s fleet of A319/A320 aircraft.
- As the new agreement re-establishes an existing arrangement, it is not expected to have a material impact on SIAEC’s financial performance for FY16.
- Hence, we keep our forecasts unchanged. As we believe the weakness on lower aircraft/engines checks could persist for at least several more quarters, maintain SELL with the same FV of S$3.45.
(Eugene Chua)
Source: http://www.ocbcresearch.com/
