SIA Engineering Company

[AQ.]

Thanks for the input. You means OEMs, e.g. Rolls-Royce, are taking over the MRO business?

From what I understand rudimentarily:

Contract terms with airlines have changed with the OEMs. In the future, OEM's sale prices will be a function of time-in-air and in return, airlines give the MRO contract back to OEM. This aligns both parties' interests - the airline gets lower turnaround time and more flights (hopefully) and the OEM gets the MRO income (at the expense of needing to ensure reliability).

The rest of it is pretty hazy. Will the OEMs prefer to work with a regional partner or go alone (seems to me the former might be better capital-wise)? If they choose a partner will they choose SIAEC(esp given the current partnerships and SIA parentage links)? What kind of margins compared to that currently?

Structurally things have changed and it's not business as usual.