Low-maintenance aircraft a bane for struggling SIA Engineering

Expect lower workshop visits in FY16.

Newer aircraft are a bane for struggling SIA Engineering, as these models require longer intervals between maintenance checks.

A report by DBS stated that SIAEC will remain stuck in the vicious cycle of declining workshop visits until the new aircraft & engine models are due for these checks.

This comes after SIA Engineering's net profit fell 36.5% year-on-year in the fourth quarter on back of lower airframe and component overhaul (ACS) revenue.

“In our view, rebound is unlikely to happen within FY16. Hence, to help mitigate decline from its ACS
segment, SIAEC is looking to increase its revenue from FMP and LM segments through its wide network of LM stations in 34 airports,” DBS stated.

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