SIA Engineering (S59.SG) poses biggest threat to Singapore Airport Terminal Services (S58.SG) if it secures ground-handling licence at Singapore’s Changi Airport, but overall impact on latter’s earnings could still be minimal, says UOB KayHian, according to Dow Jones.

UOB KayHian notes SIA Engineering, one of four companies short-listed for Changi’s third ground-handling licence, may be keen to expand into aircraft interior cleaning, area which SATS specialises in and accounts for $40–$50 million of SATS’ revenue, with Singapore Airlines (C6L.SG) accounting for bulk of this amount.

“If SIA Engineering secures the third licence, it could potentially capture a larger share of the aircraft cleaning business, but excluding SIA and low-cost carriers, which mainly self clean, we believe the impact to earnings will be minimal,” says UOB KayHian.

Tender for 10-year licence closes September, 17. Other short-listed candidates are Jetstar Airways, AirAsia (5099.KU), Aircraft Service International Group (ARI.XX). SATS shares +0.7% at $2.82, SIA Engineering flat at $4.12.