SIA Engineering-P&W JV finds new revenue stream

It has been selected to provide MRO services to GTF engines.

SIA Engineering Company (SIAEC) recently announced that its existing joint-venture with Pratt & Whitney (P&W), Eagle Services Asia (ESA), has been selected as the maintenance, repair and overhaul (MRO) facility in Singapore for P&W’s PW1100GJM PurePower Geared Turbofan (GTF) engines, which is one of the two engine options that powers the A320neo aircraft family.

According to OCBC Investment Research, ESA will invest an estimated US$85m to equip the facility in order to perform MRO services on the GTF engines.

"We view this positively as it creates a new revenue stream for ESA, especially since profit contributions from ESA have been on a declining trend mainly due to the retirement of the older four-engine B747-400 aircraft, which is powered by P&W’s PW4000 engines," OCBC Investment Research said, pointing out that PW4000 engines were once the main revenue driver of ESA.