SIA says not in talks with Garuda

SIA says not in talks with Garuda

SINGAPORE: SIA Engineering Ltd., the aircraft maintenance arm of Singapore Airlines Ltd. (SIA), on Tuesday denied approaching Garuda Indonesia to buy a stake in its maintenance business.

"SIA Engineering is not in discussions with Garuda on the intention to sell a stake in their maintenance unit," an SIA Engineering spokesman told Dow Jones.

Garuda's Chief Executive Indra Setiawan was quoted by the Financial Times web site saying the Indonesian airline wants to sell a 20-25 percent stake in its wholly owned maintenance unit for US$40 million to US$50 million to a strategic investor by year-end.

He had added SIA and Lufthansa were among airlines that had expressed an interest in the stake.

Despite the denial of talks with Garuda, SIA Engineering has recently expanded to Indonesia.

Earlier in August, it signed an agreement with PT Jasa Angkasa Semesta to provide aircraft line maintenance services at Indonesia's major airports. -- Dow Jones