BUILDING & ENGINEERING | Staff Reporter, Singapore

SIA Engineering eyes boosting overseas line maintenance earnings

It aims to commence maintenance service at JFK airport in 2018.

After it reported a 15% growth in earnings for the past quarter, SIA Engineering announced that it plans to boost line maintenance revenue overseas.

According to UOB KayHian, the return on assets (ROA) for the said segment is approximately 140%, and it remains a key earnings driver.

"SIAEC performs line maintenance in 36 countries but the bulk of earnings is still derived out of Singapore," the brokerage firm said.

SIA Engineering indicated that that it intends to commence line maintenance at the JFK airport in the financial year 2018.

"[T]his could compensate for the loss of revenue at the repair and overhaul segment due to competitive pressures," UOB KayHian said.

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