Singapore based SIA Engineering Company Limited has bagged the Services Agreement with Scoot to include the carrier’s new Embraer E190-E2 fleet. In a press release , it said,
SIA Engineering Company Limited (“SIAEC”) is pleased to announce the expansion of the scope of its Services Agreement with Scoot (“Scoot”) to include the latter’s new Embraer E190-E2 fleet.
Scoot’s E190-E2s are expected to begin operations in May 2024, after the first of nine aircraft is delivered in April from Embraer’s manufacturing facility in São José dos Campos, Brazil.
From the agreement, the expanded scope of services will commence on 1 April 2024, and cover line maintenance and selected fleet management support services.
This expanded coverage is for a period of 58 months, with an option to extend coverage for a further 24 months. The additional scope is estimated to generate revenue of $52 million over the 58-month period.
This transaction is not expected to have a material impact on the net tangible assets per share or the earnings per share of the SIAEC Group for the financial year ending 31 March 2024.
Mr Goh Choon Phong, a director of SIAEC, also sits on the board of Singapore Airlines, the parent company of Scoot. Save as disclosed, none of the Directors and controlling shareholders of SIAEC have any interest, direct or indirect, in the transaction, other than through their shareholdings (if any) in SIAEC.
Scoot has already unveiled the first set of destinations for its upcoming Embraer E190-E2s. These include two new ones and four existing routes. The destinations shall be :
The airline says that the induction of E190-E2s will help it in offering direct connections to non-metro cities across Southeast Asia, strengthening connections to and from Singapore.
Noteworthy is , last year, the Singapore-based carrier confirmed that it will take delivery of nine E190-E2s to add to its growing fleet. The deal was first announced in February 2023, and the aircraft will be delivered to Scoot via a lease agreement with commercial aircraft lessor Azzora, which currently holds a backlog of Embraer aircraft in its fleet of 77 airplanes.
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