SIA Engineering (SIAEC), a unit of Singapore Airlines, said it has signed a five-year services agreement with SilkAir worth S$300 million, renewing an existing pact that will end this year.

Mr William Tan, Chief Executive Officer of SIAEC, said: "The renewal of the Services Agreement affirms the strong synergies and excellent commercial relationship with SilkAir, as we work closely to uphold its engineering excellence."

The engineering unit said the agreement covers maintenance, repair and overhaul as well as fleet management services for the SilkAir fleet.

Currently SIA's fleet management programme services eleven airlines, covering a fleet of more than 200 aircraft.

With more than half of the fleet operated by non-SIA airlines, spanning across Asia, Middle East, Australia and the United States, the Company is focused on growing the third-party content of its business and extending the global footprint of the SIAEC Group.

SIAEC said the agreement is not expected to have an impact on its financial performance as it is a renewal of a similar contract.

SilkAir, a full service premium airline, currently flies to 33 destinations across 11 countries and is the regional wing of Singapore Airlines.

It will launch operations to its 34th destination, Pekanbaru, in February next year.