1.0 INTRODUCTION
MAS wishes to announce that it has signed an exclusive, 10-year Fleet Management Programme (FMP) agreement with Pratt & Whitney, a United Technologies Corp. company to maintain the airline’s fleet of 43 PW4170 installed engines and spare engines.
Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, auxiliary and ground power units, and small turbojet propulsion products. United Technologies Corp., based in Hartford, Connecticut, is a diversified company providing high technology products and services to the building and aerospace industries.
2.0 VALUE AND TENURE OF CONTRACT
The agreement, which includes an option to extend the contract for up to five (5) additional years, is valued at approximately USD510 million.
The term shall continue for ten (10) years unless MAS elects to extend the term by an additional five (5) years for all FMP Eligible Engines, which MAS may elect by means of prior written notice to Pratt & Whitney of its intent to extend the term of the FMP Eligible Engines no later than nine (9) years after delivery of the first FMP Eligible Engine (the “Term”).
3.0 THE FINANCIAL IMPACT OF THE CONTRACT ON THE GROUP
3.1 NET ASSET AND GEARING
The transaction will not have any significant effect on the net asset and gearing of the Company.
3.2 SHARE CAPITAL AND SUBSTANTIAL SHAREHOLDERS’ SHAREHOLDING
The transaction will not have any effect on the share capital and substantial shareholders’ shareholdings of MAS as it does not involve any issuance of shares.
4.0 RISKS FACTOR
The FMP is a risk transfer programme that benefits MAS for uncertainty in the performance of the engines.
5.0 DIRECTORS AND MAJOR SHAREHOLDERS’ INTEREST
None of the directors, major shareholders and/or person connected with them has any interest, direct or indirect in the said transaction.
The detail of the press release is as per the attachment.