Their newly announced joint venture will tap Boeing's experience as a manufacturer and in engineering management and SIA Engineering's repair and maintenance expertise.
It will offer services for aircraft models such as the Boeing 737, 747, 777 and 787. SIA Engineering will hold 49 per cent of the company, with the remaining 51 per cent to be held by Boeing.
The agreement signed yesterday is subject to regulatory approvals.
"The joint venture will be a game changer for the airline industry. It will set new standards for aircraft reliability and utilisation," said SIA Engineering president and chief executive William Tan in a statement. "It will also make fleet management solutions far more accessible, customisable and affordable for airlines. Aircraft ownership will be made much simpler."
Boeing has signed contracts for maintenance and engineering services to cover Scoot's fleet of 20 787 Dreamliners on order and Singapore Airlines' fleet of 27 777-300ERs.
Services for Scoot and Singapore Airlines will be provided through the new venture.
"Through this joint venture, customers of Boeing GoldCare and other operators of Boeing airplanes will now have access to an even broader range of world-class support and services, competitively priced and located in one of the fastest-growing aviation markets," said Mr Ray Conner, president and CEO of Boeing Commercial Airplanes.
Mr S. Iswaran, Second Minister for Trade and Industry, said the joint venture will position Boeing and SIA Engineering to seize growth opportunities in the Asia-Pacific region.
The fleet in this region is anticipated to triple in size over the next two decades, he added at the signing ceremony at The St Regis Singapore hotel yesterday. "At a broader level, this joint venture will provide a strong boost to our local aerospace ecosystem."
He said the joint venture will enhance the capabilities of the maintenance, repair and overhaul segment in Singapore. It will also present Singaporeans with more opportunities to pursue a wide range of careers with Boeing and SIA Engineering.
The announcement was made after the local stock market closed. SIA Engineering shares closed flat at $5.07.