Singapore Airline subsidiary SIA Engineering Company (SIAEC) and Cambodia Airport Investment (CAIC) have announced plans to establish a line maintenance joint venture in Cambodia.

SIAEC will hold a 51 per cent equity stake in the organisation, while CAIC will hold the remaining 49 per cent.

The joint venture will focus on providing line maintenance services at the new Techo International Airport (TIA) in Phnom Penh.

TIA is a $1.5 billion greenfield airport project located around 19 kilometres from the Cambodian capital’s city centre.

The airport is designed to accommodate 50 million passengers and will be developed in three phases, featuring three runways and a satellite terminal across a vast land area of 2,600 hectares.

Operations of the joint venture are expected to commence in March 2025, coinciding with the opening of TIA.

The joint venture complements SIAEC’s existing network of Line Maintenance International (LMI) stations and is expected to evolve into a regional aircraft maintenance, repair, and overhaul hub at TIA.

Ng Chin Hwee, chief executive of SIAEC, said: “This joint venture, in partnership with CAIC, will provide comprehensive line maintenance support with a high level of despatch reliability and quality engineering services to the airlines operating in TIA.

“It will strengthen SIAEC’s position as a leading line maintenance provider while offering high quality and efficient maintenance services to valued customers at more overseas locations.”

Pung Kheav Se, Chairman of CAIC, said: “We are delighted to form this partnership with SIAEC. We strongly believe that the transfer of technical competencies and aligned work practices with SIAEC are crucial for the long-term success of this joint venture, which will in turn create more high-value job opportunities for our local workforce.

“We are undoubtedly excited about the prospects and very confident that this strategic partnership will exceed all expectations.”

The joint venture is not anticipated to have a significant impact on SIAEC’s net tangible assets per share or earnings per share for the financial year ending March 31, 2024.

None of the directors or controlling shareholders of SIAEC has any direct or indirect interest in the joint venture, apart from their shareholdings in SIAEC.