Lacklustre growth to haunt SIA Engineering in FY17-18: report

Longer check intervals continue to be a headache.

There’s more turbulence ahead for SIA Engineering (SIE), as analysts see uninspiring growth for the company in the next few years.

According to a report by DBS, topline growth can be expected to come in at 1-3% per annum in FY17-18, with the possibility of a slight cyclical upswing in maintenance, repair, and overhaul work in 2018-2019 as the larger checks arrive.

However, the secular trend of lower overall work content and longer check intervals continue to be a headache.

DBS further points out that joint venture initiative with original equipment manufacturers are a net positive, though any accretive impacts is at least a few years away.

Meanwhile, recent initiatives such as the $50m investment into technologies such as big data for aircraft will help the company stay competitive in the long-term.

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.


If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.