SIAEC forms line maintenance JV with Air Innovation Korea

The company will have an initial registration capital of $5.53m.

SIA Engineering Company (SIAEC) has entered into a joint venture (JV) agreement with Air Innovation Korea (AIK) for a Korea-based line maintenance project, according to a press release.

Under the agreement, SIAEC will hold an equity stake of 51% in the Joint Venture, with AIK taking the remaining 49% stake. The JV company will have an initial registration capital of around $5.53m (KRW4.77b).

SIAEC will subscribe for $2.82m (KRW2.43b) in cash, whilst AIK will subscribe for $2.71m (KRW2.34b).

This partnership supplements the A320 CEO / NEO fleet inventory technical management programme of AIK’s wholly owned subsidiary, Aero-K Airlines, where SIAEC will support the airline for component pooling as well as repair and overhaul management services.

These services will begin in March, when the subsidiary will begin operations from their base in Cheongju International Airport, and will be provided for six years for each fleet type.