Pasay—(PHStocks)—Cebu Air Inc. (PSE: CEB) signed a new agreement with SIA Engineering Company Limited (SIAEC) covering both the present and new fleet of A320 aircraft to be delivered over the next five years. With this latest signing, the total revenue of SIAEC Group contracts with Cebu Air will grow to S$236 million.
Under the agreement, SIAEC will provide Cebu Air with a wide range of fleet management and maintenance, repair and overhaul (MRO) services, which will be performed in Singapore and at SIAEC’s facilities in the Philippines.
The five-year contract covers the rapidly growing fleet of Cebu Air, which will see its current fleet of 30 A320/A319 aircraft, grow by an additional 22 A320 aircraft to be delivered progressively over the next five years.
William Tan, Chief Executive Officer of SIAEC, said: “This new agreement further strengthens the strong synergies and excellent relationship between SIAEC and Cebu Air since the signing of the first fleet management contract between the Companies in 2005. Both Companies have worked in close partnership to uphold the engineering excellence and high despatch reliability of the Airline.”
“With three decades of experience in servicing a wide range of Airbus aircraft, including being the first in the world to undertake heavy maintenance of the A380, our customers are assured of high quality and ontime delivery for the Airbus aircraft entrusted to us,” Tan added.
Lance Y. Gokongwei, Chief Executive Officer of Cebu Air, said: “The next five years will be an exciting time for the airline. We will continue to grow our fleet and widen our network. We look forward to SIAEC’s extensive and highly efficient aircraft maintenance services.”
SIAEC’s fleet management business currently covers 13 airlines with a fleet size of more than 211 aircraft. More than half of the fleet is operated by non-SIA airlines, spanning across Asia, Australia and the United States.