Written reply to PQ on SIA-Boeing deal that was recently announced

Question

Mr Leon Perera: To ask the Minister for Trade and Industry (Industry) regarding the $18.7 billion SIA-Boeing deal that was recently announced (a) whether there will be economic activities to be undertaken in Singapore that can support the development of our aviation industry as a result of this transaction; and (b) whether economic activities such as the manufacturing of parts of the aircraft being ordered or provision of related services were negotiated as a condition of the transaction.

Written reply

1. SIA’s recent order of Boeing planes was a commercial deal negotiated between SIA and Boeing. While the Singapore Government was not involved in the deal, the deal could lead to economic spin-offs for Singapore, through new business opportunities for Boeing’s aftermarket services and new MRO activities.

2. First, the new aircraft will provide new opportunities for SIA to expand its network while supporting fleet modernisation.

3. Second, Boeing has a substantial aftermarket services presence in Singapore today, covering activities such as pilot training, flight services, fleet management, and digital aviation services, which could support SIA’s expanded Boeing fleet.

4. Third, SIA Engineering Company (SIAEC) and GE Aviation have announced an agreement to establish a proposed joint venture (JV) in Singapore, which will provide engine maintenance, repair and overhaul (MRO) services for GE90 engines, as well as GE9X engines powering SIA’s new fleet of Boeing 777X aircraft.

5. The Government has been supporting capability building efforts across the diverse segments of our Aerospace industry, including engine overhaul MRO and airframe MRO. To this end, we are currently developing the Aerospace Industry Transformation Map (ITM), which will lay out comprehensive strategies to ensure that we are well-positioned to capture the growth opportunities in the Aerospace industry.