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CCI Approves Joint Venture Between Boeing And Singapore Airlines Engineering.

28 December, 2014

 

 

On October 17, 2014, CCI passed an order approving the proposed transaction between Boeing
Singapore Private Limited (‘Boeing’) and SIA Engineering Company Limited (‘SIAECL’).
The transaction involved the establishment of a joint venture company (‘JV’) between Boeing
and SIAECL who will hold 51% and 49% of the JV, respectively. The JV would be engaged in
the manufacture, repair and overhaul services (‘MRO Services’) along with related engineering,
logistics, supply chain and inventory management services, in South Asia Pacific region, including
India, with respect to certain aircrafts manufactured by the Boeing Company.

 

CCI noted that Boeing is a wholly owned subsidiary of The Boeing Company, engaged in the
business of aircraft fleet management solutions. Further, SIAECL is part of the Singapore Airlines
group and is engaged in MRO Services for aircrafts, engines and related components.
As part of the proposed transaction, certain contracts with SIA group customers and third
parties, for the provisions of MRO Services for aircrafts manufactured by The Boeing Company
were novated to the JV. The novation of customer contracts was seen as a transfer of assets by CCI.

 

CCI also noted that MRO Services can be classified into (i) heavy maintenance, including
major structural inspection of airframes, (ii) line maintenance, including routine maintenance
checks; (iii) component maintenance, and (iv) engine maintenance. CCI noted that the JV to be
set would not be providing engine maintenance services. CCI noted that (i) neither Boeing nor
SIAECL had any presence in the market for (a) heavy maintenance, and (b) component maintenance and (ii) The Boeing Company had no arrangement to provide MRO Services with any
other Indian carriers.

 

Accordingly, CCI found that the proposed combination was unlikely to have any AAEC in
India and approved the transaction.

 

 

AZB

 

For further information, please contact:

 

Zia Mody, AZB & Partners
zia.mody@azbpartners.com

 

Abhijit Joshi, AZB & Partners 
abhijit.joshi@azbpartners.com

Shuva Mandal, AZB & Partners 
shuva.mandal@azbpartners.com

 

Samir Gandhi, AZB & Partners
samir.gandhi@azbpartners.com

Percy Billimoria, AZB & Partners 
percy.billimoria@azbpartners.com

 

Aditya Bhat, AZB & Partners 
aditya.bhat@azbpartners.com

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