DRAGONAIR SIGNS TECHNICAL AND INVENTORY MANAGEMENT CONTRACT WITH SIAEC

 Dragonair today signed an agreement with SIA Engineering Company (SIAEC) for the technical and inventory management of two Boeing 747-300 aircraft, set to enter service later this year as freighters. The aircraft were purchased from Singapore Airlines in November last year.

Under the agreement, worth US$15-20 million over three years, SIAEC, a listed subsidiary of Singapore Airlines, will provide project management and support services to Dragonair during the conversion of the aircraft from combis to freighters. Taikoo Aircraft Engineering Company will undertake the conversion at its base in Xiamen, China.

Once the aircraft enter service – in August and October respectively this year – services covering maintenance planning and logistics and material management will be provided by an in-house engineering team from SIAEC based in Hong Kong. Hong Kong Aircraft Engineering Company (HAECO) will carry out the actual maintenance.

“We’re very happy to have the chance to co-operate with SIAEC on the freighter side,” said Dragonair CEO Stanley Hui. “The opportunity to have a professional, experienced team from SIAEC working in-house will provide us with invaluable expertise.”

Mr William Tan, SIAEC's Chief Executive Officer Designate said: "We are glad to work in close partnership with a progressive airline like Dragonair. Airlines are increasingly seeking integrated services and long-term agreements. In response, SIAEC is building up a complete suite of services to meet this growing demand."

Dragonair launched a freighter service between Hong Kong and Europe via the Middle East and to Shanghai last year with a wet-leased Boeing 747-200.

Dragonair is a Hong Kong-based airline, operating a fleet of five A330-300s, three A321s and seven A320s in addition to the Boeing 747-200 freighter. It will almost double its fleet by the end of 2005. The airline’s passenger network covers 27 destinations across the Asia-Pacific region, including 17 in mainland China, while its cargo network connects the markets of Europe, the Middle East and China.

Singapore-based SIAEC is a provider of comprehensive maintenance, repair and overhaul services. It provides line maintenance and technical ground handling as well as airframe and component repair and overhaul for more than 70 airlines.