SIA Engineering to earn 5% more in FY13

SIE recently clinched a five-year fleet management contract worth S$166m.

Here's more from DBS:

With oil prices currently subsiding from the highs in early 2012, this will provide some relief to the airline industry in 2012. Load factors in the region continue to be stable and aircraft movements at Singapore’s Changi Airport continue to hit new records (10% growth during 1H-CY12), driven mainly by traffic from other Asian countries and the Middle East.

Thus, with SIE’s key presence in the Asia-Pacific and the Gulf (Bahrain), we believe demand for the group’s core MRO businesses will remain stable in the near term. We expect SIE to record a steady 5 to 6% earnings growth in FY13/14. Note that SIE was recently been awarded a five-year fleet management contract worth S$166m by Cebu Air to maintain its growing fleet of A320 aircrafts.