SIA Engineering takes stake in Pratt's PW1000G

SIA Engineering Co. broke ground for a non-OEM provider of MRO services by purchasing a stake in Pratt & Whitney's PW1000G engine "risk-revenue sharing program" in exchange for a key role in Pratt's MRO network.

SIAEC, a member of Singapore Airlines Group, will hold a 3% stake in the engine RRSP for the Bombardier CSeries and a 1% stake in the Mitsubishi Regional Jet engine RRSP.

SIAEC's joint venture with Pratt, Eagle Services Asia, will be designated as "the first engine center" in the global RRSP MRO network for the PW1500G geared turbofan variant that will power the CSeries scheduled to enter service in 2013. Financial terms of the deal were not disclosed.

"We are pleased that SIAEC has committed to participate in our Risk Revenue Sharing Program for the PurePower PW1000G engine," Pratt & Whitney Commercial Engines & Global Services President Todd Kallman said.

"By scaling up the MRO value chain through our investments in the development of the PW1000G engine, our P&W joint ventures will benefit from the downstream MRO work," SIAEC CEO William Tan said. "The acquisition of new engine capabilities will also enable SIAEC to access the markets of next-generation aircraft powered by the new engines."