Aviation MRO providers hit with intense manpower crunch, muted demand growth

Aircraft movements at Changi are declining.

Singapore’s aviation maintenance, repair, and operations providers are struggling with muted demand growth and an intense manpower crunch.

According to DBS, these factors have produced disappointing results for both SIA Engineering, which is a pure aerospace MRO provider, and ST Engineering, which derives about 50% of profits from its aerospace MRO division.

Aircraft movements at Changi Airport are also declining after multiple years of double-digit growth, signalling that the region’s air traffic growth has plateaued.

“In addition, newer aircraft types usually come with lower MRO requirements and longer maintenance schedules. MRO providers are also dealing with gradual phasing out of older aircraft types and engine types,” stated DBS.

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