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SIA Engineering expected to experience near-term turbulence

Stanislaus Jude Chan
Stanislaus Jude Chan11/8/2017 4:51 PM GMT+08  • 2 min read
SIA Engineering expected to experience near-term turbulence
SINGAPORE (Nov 8): A lack of near-term catalysts and sluggish recovery momentum are weighing heavily on SIA Engineering Company (SIAEC), analysts say.
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SINGAPORE (Nov 8): A lack of near-term catalysts and sluggish recovery momentum are weighing heavily on SIA Engineering Company (SIAEC), analysts say.

“The maintenance, repair and overhaul (MRO) industry is undergoing a structural change with a shift towards an increase in line maintenance needs for the newer aircraft/engine models,” says OCBC Investment Research’s lead analyst Eugene Chua in a Tuesday report.

“Over the near-term, we believe there will be pressure over its airframe and component overhaul services (ACS) segment until the newer aircraft models are due for workshop visits, which in our view will not happen until at least three to five years later,” he adds.

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