Chart of the Day: Declining airport traffic at Changi drives away MRO providers

Growth options have become limited.

After multiple years of double-digit growth in passenger traffic and aircraft movement at Changi Airport over 2010-12, growth rate moderated to around 5% in 2013. In 2014, aircraft movements have shown y-o-y declines over the last six months.

According to DBS, it seems that the near-term growth in air traffic in the region has plateaued for now, limiting growth options for MRO providers.

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.

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