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SIA Engineering's line maintenance service to grow 8%
It will be the only segment to register a steady growth.
SIA Engineering's hopes for recovery may likely come only in the line maintenance service segment.
According to a report by CIMB, the segment will be able to see steady growth of 8% per annum in the next three years as more work shifts from hangar to apron, in addition to the growth in flights into Changi Airport.
"However, this comes at the expense of lower margins, as was seen in 2H17 when operating margin fell to 15% from more than 20% historically," CIMB analyst Lim Siew Khee said.
Also, she explained that there could be a downside risk to airframe and component MRO revenue and operating losses if there are further postponements in heavy checks among airlines.
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