SIA Engineering Company and France's Safran Aircraft Engines have signed a joint venture agreement to establish a new maintenance, repair, and overhaul (MRO) facility in Singapore focused on CFM LEAP aircraft engines. The joint venture represents an investment of approximately US$118 million (SGD 152 million) and aims to enhance the service capabilities for LEAP-1A and LEAP-1B engines used on Airbus A320neo and Boeing 737 Max aircraft [1, 2].
Safran will hold a majority 51% stake in the joint venture, while SIA Engineering will hold the remaining 49% equity. Both companies may make additional capital contributions, with SIA Engineering’s maximum increase capped at US$57.8 million and Safran’s at US$60.2 million [1, 2]. If SIA Engineering fully invests the US$57.8 million by March 31, its consolidated earnings per share are projected to rise by about 6.5% to SGD 0.1608, and its net asset value per share would increase by 0.6% to SGD 1.579 [1, 2].
Currently, SIA Engineering conducts quick-turn maintenance for Safran’s LEAP engines at its Aircraft Engine Services facility in Changi North. This existing operation will be consolidated under the new joint venture [2]. Wong Yue Jeen, SIAEC chief commercial officer, said the JV builds on a 10-year engine maintenance services agreement signed with Safran in 2019 and combines Safran’s OEM expertise with SIA Engineering’s "MRO excellence" [2].
Safran executive vice-president of support and services, Nicolas Potier, noted the JV will help meet growing demand for LEAP engine servicing across the Asia-Pacific region [2].
The JV facility will specifically enhance capabilities related to LEAP engines powering the popular Airbus and Boeing narrow-body fleets.
The joint venture agreement was announced on June 6, 2026 [1, 2]. The companies are expected to finalize operational details and ramp up services under the new partnership in the coming months.
