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SIAEC and Cebu call time on Philippines MRO partnerships

SIA Engineering Philippines

SIA Engineering Company (SIAEC) and Cebu Pacific Air have agreed to end their joint venture MRO partnerships in the Philippines in favour of sole ownership.

Under two separate agreements, SIAEC will acquire Cebu’s entire 35 per cent shareholding in SIA Engineering Philippines Corporation (SIAEP) to take full ownership, while Cebu will acquire SIAEC’s 51 per cent stake in Aviation Partnership (Philippines) Corporation (APPC). Cebu will take full ownership.

SIAEP is located in Clark, the Philippines and provides airframe maintenance, repair, de-lease checks, cabin retrofits and overhaul services for 737, A320 and A330s, as well as line maintenance. SIAEC will acquire Cebu’s stake for a US$7.74 million cash consideration.

APPC is based in Manila, the Philippines and provides line maintenance services at Manila, Cebu, Davao and Clark, as well as other secondary airports in the Philippines. Cebu will acquire SIAEC’s stake for a US$5.61 million cash consideration.

The acquisitions are subject to the satisfaction (or waiver) of certain conditions. If completed, SIAEP will become a wholly-owned subsidiary of SIAEC. SIAEC would cease to have any equity interest in APPC.

SIAEC said the deals were in line with its strategy to strengthen its core competencies and enhance SIAEP’s status as the group’s centre of excellence for narrowbody aircraft maintenance, repair and overhaul.

The company stated: “The SIAEC Group is now in a stronger position to seize new opportunities, and provide customers with cost-competitive and integrated MRO solutions, from airframe to engines and components, for modern aircraft fleets of various sizes and composition.”

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