SIA Engineering Co. (SIAEC) almost doubled its operating profit in the second quarter thanks to lower subcontractor costs and currency fluctuations, although through the first half of its fiscal year the Singapore Airlines subsidiary posted S$3.2 million (US$2.4 million) lower sales from its engine and components segment.
This segment accounted for S$55 million (US$44.4 million) of the MRO provider’s S$87.6 million (US$64.4 million) first-half profit, a contribution that was S$7 million (US$5.1 million) lower than the year-ago period due to “higher expenses incurred by an engine center as it gears up for new engine capabilities.”
SIAEC has five joint-venture engine overhaul and repair centers, including its 50-50 partnership with Rolls-Royce, Singapore Aero Engine Services (SAESL).
Designed to turn around 320 engines annually, SAESL has overhaul capabilities across the Trent family and is the lead MRO facility for the Trent XWB.
Aviation Week Fleet & Data Services predict that there will 964 Trent XWBs in service next year, rising to 3,126 by 2029. By that year, Asia-Pacific carriers should account for almost one-third of the in-service fleet, followed by Western Europe with nearly 700 engines and then the Middle East with more than 500.
With the Airbus A350 fleet still young, maintenance demand for its engines will be low next year, at about US$82 million, according to Aviation Week, although this will have risen to about US$3.7 billion by 2029, making it the third largest widebody engine maintenance market in 10 years’ time.
In comparison, the General Aviation GEnx maintenance market will be worth US$1.9 billion in 2020 and a whopping US$4.7 billion in 2029, second only to the GE90’s US$6 billion market at that point.
For a detailed look at the future of commercial aero-engine maintenance demand, see the forthcoming Engine Yearbook 2020.