ST Engineering arm injects S$1.8m to subsidiary

The injection will upgrade ST Aerospace Academy's flight traning capacity.

In a release, Singapore Technologies Engineering Ltd announced that its aerospace arm, Singapore Technologies Aerospace Ltd, through its wholly owned subsidiary ST Aerospace Engineering Pte Ltd has injected US$1.44m (approximately S$1.8m) into the capital of wholly owned subsidiary, ST Aerospace Academy Pte Ltd.

The capital injection affirms ST Aerospace’s confidence in the pilot training business and its continued investment to upgrade STAA’s flight training capacity and capabilities to meet rising training demand from airline customers and private self-funded individuals. STAA will use part of the funds to equip its new Flight Operations Centre (FOC) at the Ballarat Airport, featuring a state-of-the-art centralised flight operations and dispatch centre.

The FOC will come with a new aircraft apron that can accommodate a fleet of up to 40 training aircraft. There is also plan to acquire a PA44 Seminole full flight simulator in late 2012. STAA expects to train 200 commercial pilot cadets by the end of 2012.

The fund injection is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial