Escalating headwinds pound struggling SIAEC

How will it survive the downturn?

The aircraft maintenance, repair, and overhaul company has been bugged by longer maintenance cycles for quite a time now due to newer aircraft and engines. SIAEC, however, plans to bank on increasing line maintenance capacity at Changi airport, SIA deliveries and its JV with Boeing.

According to OCBC, its line maintenance segment is set to double at Changi airport due to the addition of two terminals. It is also expecting the first of 63 A350 deliveries to SIA, which will help alleviate the longer cycles.

SIAEC is also counting on its JV with Boeing to drive earnings ahead.

"In the near-term, we expect SIAEC’s fleet management programme (FMP) and overseas LM segments to help mitigate the revenue weakness," OCBC adds.