SIA Engineering Company Stock

SIA Engineering Company Limited operates as a maintenance, repair and overhaul (MRO) company worldwide. The company is a subsidiary of Singapore Airlines Limited.

The company’s maintenance facility in Singapore offers MRO services to a client base of approximately 80 international airlines and aerospace equipment manufacturers. Complementing its spectrum of MRO services is its portfolio of 24 joint ventures in 8 countries, forged with strategic partners and major original equipment manufacturers. The company holds certifications from 27 national airworthiness authorities worldwide. The company has a joint venture with Moog Incorporated.

Segments

The company operates through Line Maintenance and Repair and Overhaul segments.

Line Maintenance segment

Serving an international client base of approximately 50 airlines at Singapore Changi Airport, this segment’s engineers and technicians provide aircraft certification and ground handling services, such as push-back and towing, ensuring high dispatch reliability for aircraft on transit and night stop at Changi Airport. This segment also engages in the provision of aircraft ground support equipment and rectification work services.

Repair and Overhaul segment

This segment provides airframe maintenance, component overhaul, engine repair, and overhaul services, as well as fleet management programme. These services include scheduled routine maintenance and overhaul, specialized and non-routine maintenance, modification and refurbishment programs. Fleet management programme includes fleet technical management and inventory technical management services, which include the provision of engineering and MRO solutions that could be customized to provide maintenance support to airlines.

Aircraft and Component Services

Aircraft are mandated to undergo scheduled checks to maintain their airworthiness certifications with national regulatory authorities, such as the Civil Aviation Authority of Singapore, Federal Aviation Administration of the United States, and the European Aviation Safety Agency of the European Union. Scheduled A, C and D checks are performed by the company’s Heavy Maintenance division at its six hangars in Changi. The division also provides airframe structural repair and modification, cabin refurbishment, VIP aircraft modification, aircraft painting and retrofitting of inflight entertainment and avionics systems. During the year under review, the company incorporated an airframe maintenance joint venture company with Airbus, which would be established as Airbus’ Centre of Excellence for the A380 and A350 heavy maintenance in Asia.

The Workshops and Cabin Services divisions of the company comprise a range of workshop facilities, providing inspection, repair, modification and test services for a spectrum of aircraft components. The company has an agreement with Moog Incorporated, a primary manufacturer of flight control components, to establish a joint venture for the MRO services of Moog Incorporated’s products on new-generation aircraft, such as the Boeing 787 and the Airbus A350. The agreement is subject to regulatory approvals of the relevant jurisdictions.

The company has a memorandum of understanding with Stratasys Ltd, a primary 3D printing and additive manufacturing solutions company to establish a joint venture to offer design, engineering, certification support and parts production to the company’s network of partners and customers. This strategic partnership combines Stratasys Ltd’s knowhow and expertise in additive manufacturing with the company’s MRO service offerings to provide airline customers worldwide with scheduled maintenance and on-demand parts solutions. All of the foregoing joint ventures would improve the company’s core services at its Singapore main base.

Fleet Management

The Fleet Management business covers engineering, maintenance support activities and inventory management, including formulating and up-keeping of aircraft maintenance programmes, maintenance planning, engineering design, consultation, quality and reliability programmes, 24/7 maintenance control, materials support solutions, logistics and supply chain management. These services are grouped under Fleet Management division’s two main departments – fleet technical management and inventory technical management. Through the company’s capabilities in inventory and supply chain management, airlines are provided with integrated solutions that include component pooling, on-site consignment, component repair and overhaul management, warehousing, logistics and 24/7 aircraft-on-ground (AOG) support services. In addition, Fleet Management division provides turnkey solutions to assist airlines in aircraft entry-into-service preparations. These include the establishment of infrastructure, such as warehousing, provisioning of onsite spares and all other necessary logistics set-up.

Joint Ventures

Line Maintenance

Apart from the operations at Changi Airport, the company’s international line maintenance network comprises six line maintenance joint ventures overseas, covering 35 airports in six countries. They are Aircraft Maintenance Services Australia in Australia, Aviation Partnership (Philippines) Corporation in the Philippines, PT Jas Aero- Engineering Services in Indonesia, Pan Asia Pacific Aviation Services in Hong Kong, SIA Engineering (USA) in the United States, and Southern Airports Aircraft Maintenance Services Company in Vietnam.

Engine and Component

The company has forged six joint ventures with the world’s major engine and engine component manufacturers, including Pratt & Whitney and Rolls-Royce, to improve the breadth and depth of the company’s engine overhaul services. Out of the six engine overhaul/component joint ventures, five are located in Singapore, including Singapore Aero Engine Services Limited and Eagle Services Asia, which are the Asia Pacific Centre of Excellence for Rolls-Royce and Pratt & Whitney engines respectively, two of the world’s major engine manufacturers. The other three Singapore based facilities are Asian Surface Technologies, Component Aerospace Singapore and Turbine Coating Services. Another engine component joint venture, Asian Compressor Technology Services, is located in Taiwan.

Airframe Maintenance

SIA Engineering (Philippines) Corporation operates two narrow-body hangars and one widebody hangar, which was operational in 2017 at Clark, the Philippines, to provide heavy and light maintenance checks to airlines operating out of the Philippines and in the region.

Aircraft Component and Services

The company has seven Singapore-based joint ventures specializing in component overhaul – Aerospace Component Engineering Services, Fuel Accessory Service Technologies, Jamco Singapore, Safran Landing Systems Services Singapore, Goodrich Aerostructures Service Centre - Asia, Panasonic Avionics Services Singapore and Safran Electronics & Defense Services Asia. Another joint venture, Jamco Aero Design & Engineering, based in Singapore, provides turnkey solutions for aircraft interior modifications.

Significant Events

In January 2020, the company and GE Aviation had incorporated an engine overhaul joint venture, GE Aviation, Overhaul Services – Singapore.