Commercial aerospace has led growth across the ST Engineering portfolio this year, with sales up 11% to S$3.63 billion ($4.8 million) for the first nine months.
The Singaporean aerospace company said Nov. 12 that growth was driven by engine maintenance, repair and overhaul (MRO) and nacelles work, somewhat offset by a slowing passenger-to-freighter conversion business.
For commercial turbofans, ST Engineering specializes in CFM types. In early 2023, it joined CFM’s authorized MRO network for Leap engines, enabling it to provide a full range of solutions including engine overhaul, proprietary parts repair technology, engine pooling and leasing.
This September it opened repurposed engine facilities in Paya Lebar, Singapore, to allow it to increase its CFM engine maintenance output to 300 engines annually by 2027.
The MRO provider also has an aircraft leasing business, and on Nov. 12 Titan Aviation Leasing confirmed the sale of two Boeing 737-800SF aircraft to ST Engineering.
The aircraft were converted in 2022 and are on long-term leases to Georgian Airlines and ASL Airlines.
“Our collaboration with Titan adds two important lessees and narrowbody freighters as we continue to build up our portfolio of next-generation green freighter aircraft, underscoring our commitment to maintaining fleet flexibility and creating long-term value in a dynamic cargo market,” said Ramesh Krishna, ST Engineering’s head of aircraft leasing and aviation asset management.
ST Engineering is aiming to increase its annual commercial aerospace revenue to S$6 billion by 2029.
The company signed S$1.4 billion of new commercial aerospace contracts during the third quarter, including a multi-year Airbus A380 heavy maintenance and cabin modification contract with an unnamed European airline.
British Airways and Lufthansa are the only remaining European operators of the A380, while British startup Global Airlines has struggled to launch services with its single super widebody aircraft.
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