Here's how ST Engineering successfully dodges headwinds

Thinking ahead of the curve.

According to Nomura, the group engages in five-year strategic planning, which allows it to think ahead of the curve. For instance, the group has developed new capabilities such as interior refurbishment which will allow it to generate more work during the A & B check phases of the aircraft.

This is in reaction to the shift towards a younger aircraft fleet, which would require more A & B checks rather than the heavy C & D checks.

Here's more from Nomura:

Again, in response to a younger fleet, additional maintenance capacity will be placed closer to airports to allow for shorter turnaround time, which the airlines demand during the lighter A & B checks.

Newer maintenance capacity will also be larger to accommodate new plane types (eg, A380).

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