Singapore Airlines 2010 Annual Report Download - page 26

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SINGAPORE AIRLINES
024
operating review
SIA Engineering Company (SIAEC)
During the year in review, SIA Engineering
Company’s (SIAEC) revenue again exceeded
the billion-dollar mark to reach S$1.006 billion.
Profit attributable to equity holders was
S$236.1 million.
Despite headwinds in the aviation industry,
SIAEC extended its maintenance, repair and
overhaul (MRO) footprint globally, cemented
ties with strategic partners, and augmented its
capacity and capabilities.
Early in the year, SIAEC inked a three-year fleet
management contract with Gulf Air valued at
US$135 million. This extended the company’s
fleet management business network to one
that now covers Asia, Australia, the US and the
Middle East. In June 2009, SIAEC set up a base
in Bahrain to support Gulf Air’s fleet.
SIAEC also established another overseas base,
with the completion of a new hangar at Clark
International Airport in the Philippines. Besides
catering to Cebu Pacific Air’s fleet, the new
facility can also carry out work for other airlines.
SIAEC continued to extend its capabilities and
capacity through strategic joint ventures. The
company signed an agreement with leading
French avionics manufacturer Safran to establish
an avionics MRO joint venture in Singapore.
A Memorandum of Understanding (MOU)
was sealed with Gulf Technics, a subsidiary of
Mumtalakat Holding Company, the investment
arm of the Kingdom of Bahrain, to set up and
operate an MRO facility in Bahrain.
The company entered into a 10-year
Service Agreement with Panasonic Avionics
Corporation, a leading supplier of aircraft in-
flight entertainment (IFE) systems. An MOU was
also signed with Panasonic Avionics to form a
joint venture.
SIAEC moved up the MRO value chain when
it entered into an agreement with Pratt &
Whitney to participate in the PW1000G Risk-
Revenue Sharing Programme (RRSP). P&W is
developing the PW1000G engine to power
Next Generation Single-Aisle aircraft.
Amidst the buzz of Singapore Airshow 2010,
SIAEC opened its new A380 Hangar, the
world’s first A380 purpose-built hangar. The
technologically advanced hangar - the sixth
that SIAEC operates at Changi Airport - is
equipped with computer controlled docking
that can accommodate the A380 and B777,
a world’s first hangar feature.
SIAEC ended the financial year with the renewal
of its MRO Services Agreement with SIA. Under
the three-year agreement, with an option for a
two-year extension, the company will continue
to provide a comprehensive spectrum of MRO
and fleet management services.