Singapore Airlines 2011 Annual Report Download - page 29

Download and view the complete annual report

Please find page 29 of the 2011 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 208

  • 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
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208

ANNUAL REPORT 2010/2011 027
SIA Engineering Company
During the year under review, SIA Engineering Company (SIAEC) maintained its revenue above the billion-
dollar mark by achieving turnover of $1,107 million. Profit attributable to equity holders was $258.5 million.
SIAEC continued to expand its Fleet Management Programme (FMP) business with new customers.
The Company secured a six-year FMP contract with Airbus to provide fleet management services, heavy and
light airframe maintenance checks, line maintenance, defect rectification and cabin maintenance for Singapore
Airlines’ fleet of five Airbus A340-500s. SIAEC also signed a $42 million FMP contract with Royal Brunei
Airlines to cover the carrier’s fleet of six Boeing 777-200ERs.
During the year, SIAEC and SilkAir renewed their FMP Service Agreement. The five-year agreement covers
a broad spectrum of maintenance, repair and overhaul (MRO) and fleet management services for the SilkAir
fleet, and is expected to add $300 million in revenue to SIAEC’s order books.
With the total fleet under SIAEC’s FMP business set to exceed 230 aircraft in five years - more than half
of which is operated by non-SIA airlines - SIAEC has established itself as one of the world’s largest fleet
management service providers.
SIAEC continues to focus on extending its capabilities through strategic joint ventures. The Company signed
a Joint Venture Agreement with Panasonic Avionics Corporation to set up a Singapore-based facility for the
MRO of inflight entertainment and communications (IFEC) systems and components produced by Panasonic
Avionics. The state-of-the-art facility will meet the growing demand for IFEC support of new-generation aircraft.
SIAEC has a 42.5% stake in the joint venture, while Panasonic Avionics Corporation holds the remaining share.
SIAEC officially opened its sixth overseas line maintenance joint venture at Ho Chi Minh City’s
Tan Son Nhat International Airport in November 2010. It has a 49% stake in the joint venture company,
Southern Airports Aircraft Maintenance Services Company Limited (SAAM). Commencing operations with a
strong base load of nine airline customers, SAAM is poised to expand its customer base and service offerings
at Tan Son Nhat Airport.