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Aircraft Maintenance Service
Providers Tie Up
On 14 June 2016, CCS approved a proposed Joint Venture (“JV”) between
Airbus Services Asia Pacific Pte. Ltd. (“ASAP”) and SIA Engineering Company
Limited (“SIAEC”).While both parties overlap in maintenance, repair and
overhaul services, the scope of the JV is limited to heavy maintenance
services; both parties will operate their own hangar facility in Singapore
and provide heavy maintenance services for certain Airbus aircrafts to
customers in the Asia Pacific region.
FINDINGS
There are sufficient
alternative providers
of heavy maintenance
services to Singapore
customers globally;
these include, but
are not limited
to, Lufthansa
Technik, AFI/KLM, ST
Aerospace, Ameco
Beijing, HAECO, AAR
Corp and Evergreen
Aviation Technologies
Corp.
The proposed JV is
unlikely to be able
to take advantage
of Airbus Group’s
status as the aircraft
manufacturer to
prevent competition
in heavy maintenance
services, as customers
are in possession of
the repair manuals.
Barriers to entry
and expansion are
surmountable,
although substantial
capital investments
are needed; in
fact, there have
been several recent
new entries and
expansions by current
players.
Customers, such as major airlines, have strong
bargaining power.
CASE TEAM MEMBERS
Terence Seah, Celestine Song, Jaime Pang, Herbert Fung
COMPLETED
CASES
An In-Depth
Look
p.19
Transport
p.
21
Manufacturing
p.23
Services
p.27
Finance
p.27
Food &
Beverage
Scan the QR code to visit the public register
page on CCS’s website for more information
regarding completed cases.
TRANSPORT
APPROVED
ANNUAL REPORT 2016
19