Singapore Airlines 2009 Annual Report Download - page 26

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fi rst foray into the Boeing 777
FMP market.
Underscoring the growing
economic and strategic links
between Singapore and the
Middle East, SIAEC also signed
a FMP contract with Gulf Air to
maintain the carrier’s Airbus fl eet
over a three-year period. Together
with the earlier three-year heavy
maintenance contract signed in
February 2008, the total value
of the contracts with Gulf Air
amounted to US$135 million.
SIAEC also successfully completed
its fi rst VIP aircraft cabin
confi guration. The extensive
project involved the conversion
of a Boeing 747-400 into a
Combi aircraft, incorporating a
VIP lounge, customised passenger
accommodation, a state-of-the-art
entertainment system and satellite
communication capability into
the aircraft.
On the overseas front, SIAEC
ventured into the Philippines
and Vietnam. A joint venture
agreement (JVA) with Cebu Pacifi c
Air was signed to set up an
aircraft heavy maintenance facility
at Clark International Airport
in the Philippines. SIAEC has a
65% stake in the new venture,
SIA Engineering (Philippines)
Corporation, while Cebu Pacifi c Air
holds the remaining 35% share.
The Clark hangars will augment
SIAEC’s extensive facilities in
Singapore and provide the
company with the increased
capacity and competitive cost
structure to capture a larger share
of the global maintenance, repair
and overhaul market.
SIAEC also signed a JVA with
Saigon Ground Services (SAGS),
a division of the Southern Airport
Corporation, to set up a line
maintenance joint venture at
Tan Son Nhat International
Airport in Ho Chi Minh City,
Vietnam. SIAEC holds 49% equity
shareholding in the joint venture,
with the remaining 51% owned
by SAGS. Subject to economic
conditions and business viability,
the joint venture may expand
its presence to other airports in
Vietnam and widen its service
offerings at a later stage to
include maintenance checks and
component overhaul services.
During the year in review, the
company clinched new third-
party contracts amounting to
$121 million for its airframe
maintenance and component
overhaul business. For line
maintenance at Changi Airport,
17 new contracts were secured or
renewed. As of 31 March 2009,
its Fleet Management contracts
cover a total of 175 aircraft,
comprising 111 in service and the
remaining awaiting deliveries to
customer airlines.
SIA ENGINEERING COMPANY
SIA Engineering Company
(SIAEC) earned a profi t attributable
to equity holders of $260.6
million in the fi nancial year ended
31 March 2009.
During the year in review, SIAEC
secured several major contracts,
including a $90 million Fleet
Management Programme (FMP)
contract with V Australia to
maintain its fl eet of seven
Boeing 777-300ER aircraft,
as well as a fi ve-year support
package with Airbus to provide
maintenance services for
Singapore Airlines’ fl eet of 19
Airbus A330-300 aircraft. The FMP
contract with V Australia is SIAEC’s
OPERATING REVIEW