Singapore Airlines 2002 Annual Report Download - page 25

Download and view the complete annual report

Please find page 25 of the 2002 Singapore Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

SIA Engineering Company (SIAEC)
SIA Engineering Company focused on
increasing capacity for future growth and
expanding its range of aircraft maintenance,
repair and overhaul services during the
year in review.
Three major new repair and overhaul
facilities were commissioned during the
second half of the fiscal year. In October
2001, SIAEC’s $25 million third hangar
opened for business, increasing the
company’s airframe maintenance capacity
by 15 per cent.
The 85-metre wide single bay hangar
contains specialized docking equipment
for B777 aircraft, allowing SIAEC to offer
a wider range of services for the popular
wide-body jet.
Two more hangars, each capable of
accommodating the 500-seat A380-800
aircraft currently under development, are
due to be built within the next two years.
In October 2001, the US$100 million
Singapore Aero Engine Services Ltd (SAESL)
centre for the repair and overhaul of
Rolls-Royce Trent engines began operations
at Changi. SAESL is a joint venture between
SIAEC (50 per cent), Rolls-Royce (30 per
cent) and Hong Kong Aero Services (20
per cent).
The new 18,500 square metre facility is
designed to repair and overhaul up to 200
Trent engines a year. These engines have
become increasingly popular with Asian
long-haul jet operators.
In February 2002, Turbine Coating Services
(TCS), a joint venture with Singapore
Technologies Aerospace and Pratt &
Whitney, was officially opened. The joint
venture specializes in repairing turbine
airfoils and was developed in Singapore to
be close to Asian customers and reduce
repair turnaround time.
In July 2001, SIAEC increased its stake in
aircraft cabin equipment subsidiary
Singapore JAMCO Pte Ltd (SJAMCO) from
51 per cent to 65 per cent. This investment
was part of a programme to assist SJAMCO
to expand its ability to repair and overhaul
a wider range of aircraft cabin fittings,
equipment and furnishings.
In February 2002, SIAEC formed its 16th
joint venture, IAT-Asia, with International
Aerospace Tubes, which is owned by Pratt
& Whitney and Tube Processing Corporation.
IAT-Asia will principally be involved in the
repair of tubes, ducts and manifolds. It is
the first facility in Asia to offer such services
and will significantly reduce turnaround time
for airlines based in the region.
During the year in review, SIAEC began
work on a major new contract. In April 2001,
it signed a $30 million three-year contract
with Dragonair to manage the cargo conversion
of two aircraft. Since the freighters entered
service in October 2001, SIAEC has been
providing maintenance planning, logistics
management and materials management
services for the two aircraft.
While SIAEC prepared for future growth, it
also put rigorous programmes in place to
reduce costs and improve efficiency as
the economic environment became more
difficult.
In September 2001, it launched a month-
long campaign focusing on innovation and
productivity, as part of the company’s
ongoing PACE (Productivity for Achieving
Competitive Excellence) programme.
The campaign featured exhibitions, road
shows, study tours and competitions.
A 66-member SIAEC team took part in the
National Productivity Rally and helped set
the world record for the largest number of
ideas brainstormed by a group in an hour,
and the largest team assembled for a
brainstorm.
SIA Annual Report 01/02 25