SIA Engineering has established a foothold in the fast-growing Chinese market with a conditional agreement to buy 25% of Guangzhou Aircraft Maintenance Engineering (GAMECO) from Lockheed Martin (Flight International, 2-8 April).
The agreement remains subject to further negotiation, regulatory approval and the consent of the other GAMECO shareholders - China Southern Airlines, which holds 50%, and Hong Kong conglomerate Hutchison Whampoa (China), which has 25%.
SIA Engineering has been seeking to expand in China for some time, particularly after selling 4% of another major Chinese maintenance company, Taikoo (Xiamen) Aircraft Engineering, early last year. It retained 5%.
SIA Engineering won a separate listing from its parent on the Singapore stock exchange in 2000 and has been seeking new international partnerships.
It has 16 joint ventures with original equipment manufacturers and airlines in Singapore, Ireland, China, Hong Kong and Taiwan.
Source: Flight International
