Tuesday, January 03, 2006

Aviation: Lee Kuan Yew, urges SIA to sell off non core functions

Singapore Airlines, seems set to the follow the trend for airlines to get rid off non core functions, by selling off its engineering and ground-handling subsidiaries. It is estimated that such a move would worth $1.8 billion.

The sale of Singapore Airport Terminal Services (Sats) and SIA Engineering is being urged by the still highly influential Lee Kuan Yew, former Prime Minister of Singapore.

Mr Lee has had a series of meetings with SIA's management and unions and local media reports that he stated, ""Sooner, rather than later, SIA's engineering and catering subsidiaries will be hived off and become separate companies".