SIA Engineering Maintains Profit, Adds New Leap 1 Capabilities
SINGAPORE—Backed by a rebound in line maintenance business at Changi Airport, SIA Engineering Company (SIAEC) posted a net profit of S$33.2 million ($24.5 million) for the third quarter of its 2021/2022 fiscal year.
The results for the three-month period ending Dec. 31 were released as the company continues to invest in new capabilities, opening an Aircraft Engine Services (AES) facility for CFM Leap 1A and Leap 1B engines.
SIAEC reported a 65% year-on-year (YOY) improvement in line maintenance flights, which was up 17% on the previous quarter. Heavy maintenance checks rose to 25, up from 16 in the same period a year prior. Light maintenance checks also almost doubled over the same timeframe, from 53 to 92.
The group’s revenues grew 34% YOY to S$140 million, while total costs outpaced revenues, rising 43% YOY to S$147.8 million, mainly due to the reduction in the government’s subsidized wage scheme. Without factoring in wage support, costs increased 12% YOY.
Profits from joint ventures totaled S$40 million, helping to keep SIAEC in profit. Net profits for Q3 hit S$33 million, up from S$8 million the previous year.
SIAEC said it is focusing on initiatives to “strengthen its core competency” and has been “actively pursuing business expansion through capabilities building and extending geographical reach.” This includes the acquisition of a 75% stake in SR Technics Malaysia to bolster its component services division.
Most recently, on Feb. 18, SIAEC opened a S$9 million CFM Leap 1A and Leap 1B AES facility, encouraged by the growing fleet of aircraft powered by the engines around the world. The 20,935-sq.-ft. shop floor can perform at least 60 engine quick turns annually, and has 50% more capacity to respond to surges in demand.