SIAEC under threat as engine business flounders

It makes up over 30% of SIAEC's profit.

Improved Trent-engine reliability has affected the aircraft MRO company's joint venture with Rolls Royce, jeopardizing 30% of the firm's net profit.

The increased reliability of Trent engines is a profit bane for SIA Engineering. Its joint venture with Rolls-Royce, which represents over a third of the firm’s net profit, has been affected by fewer shop visits from customers.

Analysts from Maybank Kim Eng are pessimistic of a meaningful rebound for this segment in the near future.

Meanwhile, concerns over its engine business are remedied by an expected uptick in maintenance workload from global airlines. This is on back of accelerating capacity development and a fleet retirement slow-down due to lower oil prices.

“MRO work could pick up as global airlines return capacity & slow fleet retirement. Small beneficiary of USD strength. However, engine headwinds persist on improved Trent-engine reliability,” said Maybank Kim Eng.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia