SIAEC under threat as engine business flounders

It makes up over 30% of SIAEC's profit.

Improved Trent-engine reliability has affected the aircraft MRO company's joint venture with Rolls Royce, jeopardizing 30% of the firm's net profit.

The increased reliability of Trent engines is a profit bane for SIA Engineering. Its joint venture with Rolls-Royce, which represents over a third of the firm’s net profit, has been affected by fewer shop visits from customers.

Analysts from Maybank Kim Eng are pessimistic of a meaningful rebound for this segment in the near future.

Meanwhile, concerns over its engine business are remedied by an expected uptick in maintenance workload from global airlines. This is on back of accelerating capacity development and a fleet retirement slow-down due to lower oil prices.

“MRO work could pick up as global airlines return capacity & slow fleet retirement. Small beneficiary of USD strength. However, engine headwinds persist on improved Trent-engine reliability,” said Maybank Kim Eng.

Also Read

Institution of Engineers sets up new board to promote faster chartership registration

Hanwha raises offer to $0.67 to acquire full control of Dyna-Mac Holdings

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit