Why aviator service providers are not particularly attractive investor picks

2 big reasons according to OCBC.

Investors in aviation service providers are advised to just hold on to their stocks in 2014 as firms in the sub-sector face rising labour costs, which somehow diminishes their luster.

"While we believe that the long term outlook for the topline of the sub-sector is positive, we believe that the positives have been largely priced in," said OCBC Investment Research.

"We also note that labor costs pressures have been rising, most noticeably for SIAEC," it added.

This led the research to remain Neutral on the sub-sector for 2014, and to advise a Hold on SATS, SIA Engineering and ST Engineering.

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