Latest news with #SIAEngineeringCompany
The Hindu
29-07-2025
- Business
- The Hindu
A.P. CM Chandrababu Naidu proposes training and innovation partnership with ‘AI Singapore'
In a move aimed at transforming Andhra Pradesh into a leading hub for Artificial Intelligence (AI), Chief Minister N. Chandrababu Naidu has called for a strategic partnership with AI Singapore to establish cutting-edge research and innovation ecosystems across the State. During a high-level meeting with Mohan Kankanvalli, Deputy Executive Chairman of AI Singapore, on Tuesday (July 29, 2025), the Chief Minister emphasised the need to build strong collaborations between AI Singapore and premier universities and research institutions in Andhra Pradesh. He proposed launching AI training programmes, student exchange initiatives, and skill development modules to prepare the youth for an AI-driven future. 'Empowering our students with emerging technologies like AI is not just an investment in skills, but a foundation for long-term innovation and economic growth,' he remarked. The discussions also delved into sector-specific applications of AI, particularly in healthcare, agriculture, education, and citizen services. The Chief Minister underlined the state's commitment to fostering a robust AI ecosystem, encouraging AI Singapore to take part in joint research initiatives and deep tech collaborations. In response, AI Singapore's leadership expressed appreciation for Andhra Pradesh's proactive approach and agreed to explore opportunities for collaboration through further deliberations with their leadership and technical teams. Aviation sector Later, Mr. Naidu held a separate meeting with Ng Jean Lin Wilin, Senior Vice President of SIA Engineering Company. The Chief Minister outlined Andhra Pradesh's strategic plans for airport development and modernisation, and invited SIA Engineering to partner in Maintenance, Repair, and Overhaul (MRO) operations under upcoming airport projects. Highlighting the state's newly introduced industry-friendly policies, Mr. Naidu encouraged the company to explore investment opportunities and visit Andhra Pradesh to assess the aviation ecosystem firsthand. He stressed the potential of AP to host a world-class MRO hub, leveraging the technical expertise and global experience of firms like SIA Engineering. The Andhra Pradesh government is considering key locations such as Visakhapatnam and Krishnapatnam for setting up this proposed MRO centre, citing their strong infrastructure and logistical connectivity. In response, the SIA Engineering SVP expressed keen interest and assured that a company delegation would soon visit Andhra Pradesh to explore the possibilities further.
Business Times
22-07-2025
- Business
- Business Times
SIA Engineering Q1 net profit rises 29.2% to S$42.9 million on strong MRO demand
[SINGAPORE] Aircraft maintenance provider SIA Engineering Company ( SIAEC ) on Tuesday (Jul 22) reported a net profit of S$42.9 million for the first quarter ended Jun 30, up 29.2 per cent from S$33.2 million in the year-ago period. The group's revenue for Q1 FY2026, at S$358.4 million, was 33.4 per cent higher than the S$268.7 million in Q1 FY2025. Its expenditure rose 'at a slightly slower rate' of 32 per cent to S$353.3 million; this came mainly on the back of higher material and manpower costs, said the group in a business update. SIAEC's Q1 operating profit thus came up to S$5.1 million. Earnings per share stood at S$0.0384, up from S$0.0296 for the same period in FY2025. SIAEC said that, in Q1, it 'continued to see higher demand for its maintenance repair and overhaul (MRO) services'. During the quarter, it renewed comprehensive services agreements with Singapore Airlines and Scoot to provide 'a broad spectrum of MRO services'. These agreements, valued at about S$1.3 billion, took effect on Apr 1, 2025. They cover a term of two years, with an option to extend by an additional year. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Jade Engineering, a subsidiary of SIAEC, also secured a contract for Boeing 777 cabin retrofit services. SIAEC added in its update that aircraft maintenance check volumes 'remained healthy' in Q1. 'The sustained growth in passenger traffic, especially in Asia-Pacific, is expected to continue to drive MRO demand,' the group said. 'However, we remain vigilant to the challenges arising from the broader macroeconomic environment, such as heightened geopolitical tensions, tariff and trade policy developments, and ongoing supply chain issues.' Shares of SIAEC closed 0.9 per cent or S$0.03 higher at S$3.35, before the results were posted.
Business Times
13-05-2025
- Business
- Business Times
Carriers moving MRO work outside China even before tariff chaos: SIA Engineering
[SINGAPORE] There has been little to no impact from tariffs on SIA Engineering Company's (SIAEC) operations for now, but these are still early days, said chief executive officer Chin Yau Seng in a briefing on Tuesday (May 13). It has been just 42 days since the 'Liberation Day' tariffs were launched and the company is monitoring the tariffs and their impact. SIAEC will be looking into the structure of contracts with the view of passing on the costs to its customers. 'We are monitoring the situation, I think no one really knows how all these things will finally play out in what form,' he said. As the tariffs have yet to make a price impact, SIAEC has yet to see airlines moving their maintenance, repair and overhaul (MRO) work in China to other Asian markets. But carriers have been seeking to diversify their MRO bases overseas even before the tariffs, said Chin. 'We have been in conversation with some of them over the course of the past few years, we do have US carriers among our customers, so perhaps that's one opportunity, but we will continue conversations to see where they take us,' he said. For financial year 2025 ended Mar 31, the increase in SIAEC's expenditure was driven mainly by material and subcontract costs. Material costs have increased 32.8 per cent to S$272 million for FY2025 from S$204.8 million in FY2024. Subcontract costs have increased 36.6 per cent on the year to S$150.1 million from S$105.9 million. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up While material costs are passed through to customers, subcontract costs might not be passed through to customers depending on the contract. While material costs have been affected by inflation and supply chain issues, the rise in subcontract costs stems from the increase in volume and a rate increase that occurred in FY2025. 'We've taken the hit this past financial year, but going forward, we've locked in the contract for the three years, if there was one big jump it was in the past year already,' said Chin. Looking ahead, SIAEC is implementing a new enterprise operating system (EOS), which will increase efficiency and consistency across its MRO operations. With demand from airlines maxing out the capacity at the company's hangars, this EOS is expected to aid in forecasting and planning to eke out spare capacity to sell, among other improvements. SIAEC will work closely with its customers as part of the EOS to plan for aircraft checks. From the predictability of check induction to the availability of spares, these are some factors the EOS will consider in ensuring that the company can be more efficient in delivery timelines for maintenance checks. 'The more predictable you are, the better you are in knowing there's spare capacity that's freed up that you can sell, that will translate to revenue,' said Chin. As airlines operate their aircraft for longer, SIAEC will be leveraging its knowledge gained from maintaining airframes such as the A350 and A380, as well the Boeing 787 and 777. The company has moved up the learning curve, with Chin pointing out that the A350 checks go out on a timely basis. 'You're actually getting deeper and deeper into the aircraft life cycle and therefore you expect to have a higher work content and more things to do on the ground, and that we will continue to be at the forefront to try keep developing capabilities and making sure we are among the best MROs handling these aircraft,' he said.
Business Times
13-05-2025
- Business
- Business Times
Little to no tariff impact for now: SIA Engineering
[SINGAPORE] There has been little to no impact from tariffs on SIA Engineering Company's (SIAEC) operations for now, but these are still early days, said chief executive officer Chin Yau Seng in a briefing on Tuesday (May 13). It has been just 42 days since the 'Liberation Day' tariffs were launched and the company is monitoring the tariffs and their impact. SIAEC will be looking into the structure of contracts with the view of passing on the costs to its customers. 'We are monitoring the situation, I think no one really knows how all these things will finally play out in what form,' he said. As the tariffs have yet to make a price impact, SIAEC has yet to see airlines moving their maintenance, repair and overhaul (MRO) work in China to other Asian markets. But carriers have been seeking to diversify their MRO bases overseas even before the tariffs, said Chin. 'We have been in conversation with some of them over the course of the past few years, we do have US carriers among our customers, so perhaps that's one opportunity, but we will continue conversations to see where they take us,' he said. For financial year 2025 ended Mar 31, the increase in SIAEC's expenditure was driven mainly by material and subcontract costs. Material costs have increased 32.8 per cent to S$272 million for FY2025 from S$204.8 million in FY2024. Subcontract costs have increased 36.6 per cent on the year to S$150.1 million from S$105.9 million. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up While material costs are passed through to customers, subcontract costs might not be passed through to customers depending on the contract. While material costs have been affected by inflation and supply chain issues, the rise in subcontract costs stems from the increase in volume and a rate increase that occurred in FY2025. 'We've taken the hit this past financial year, but going forward, we've locked in the contract for the three years, if there was one big jump it was in the past year already,' said Chin. Looking ahead, SIAEC is implementing a new enterprise operating system (EOS), which will increase efficiency and consistency across its MRO operations. With demand from airlines maxing out the capacity at the company's hangars, this EOS is expected to aid in forecasting and planning to eke out spare capacity to sell, among other improvements. SIAEC will work closely with its customers as part of the EOS to plan for aircraft checks. From the predictability of check induction to the availability of spares, these are some factors the EOS will consider in ensuring that the company can be more efficient in delivery timelines for maintenance checks. 'The more predictable you are, the better you are in knowing there's spare capacity that's freed up that you can sell, that will translate to revenue,' said Chin. As airlines operate their aircraft for longer, SIAEC will be leveraging its knowledge gained from maintaining airframes such as the A350 and A380, as well the Boeing 787 and 777. The company has moved up the learning curve, with Chin pointing out that the A350 checks go out on a timely basis. 'You're actually getting deeper and deeper into the aircraft life cycle and therefore you expect to have a higher work content and more things to do on the ground, and that we will continue to be at the forefront to try keep developing capabilities and making sure we are among the best MROs handling these aircraft,' he said.
