Lacklustre growth to haunt SIA Engineering in FY17-18: report

Longer check intervals continue to be a headache.

There’s more turbulence ahead for SIA Engineering (SIE), as analysts see uninspiring growth for the company in the next few years.

According to a report by DBS, topline growth can be expected to come in at 1-3% per annum in FY17-18, with the possibility of a slight cyclical upswing in maintenance, repair, and overhaul work in 2018-2019 as the larger checks arrive.

However, the secular trend of lower overall work content and longer check intervals continue to be a headache.

DBS further points out that joint venture initiative with original equipment manufacturers are a net positive, though any accretive impacts is at least a few years away.

Meanwhile, recent initiatives such as the $50m investment into technologies such as big data for aircraft will help the company stay competitive in the long-term.