SIA Engineering eyes expanding line maintenance service to other airports

This segment is becoming a bright spot for the group.

According to OCBC Investment Research, SIA Engineering's aircraft & component overhaul services will likely remain muted given the lower work content required and longer maintenance intervals on new aircraft/engine models.

However, its line maintenance revenue is expected to grow steadily as the traditional heavier checks on new-generation aircraft are now broken down into multiple phases on the apron itself to reduce aircraft ground time in the hangars.

"Management has also highlighted they plan to increase their LM presence in more airports over time, including through JVs and partnerships. Over the longer-term, we believe SIAEC will benefit from the growth in aircraft fleet worldwide," the brokerage firm said.