SIA Engineering will set up a line maintenance joint venture with the parent company of South Korean low-cost start-up Aero K.
SIAEC will take a 51% equity stake in the new joint venture, while Air Innovation Korea will take the remaining 49% stake. The new company will have an initial registration capital of KRW 4.77 trillion ($4.04 million).
The new line maintenance joint venture will complement SIAEC’s existing support for Aero K. The carrier has signed a six-year inventory technical management programme with SIAEC, in which the Singapore-based MRO supports Aero K in component pooling and repair and overhaul management services for its fleet of Airbus A320ceos and A320neos it will operate.
Cheongju-based Aero K intends to commence operations in March, and is expected to operate four A320s by year-end.
