Page 32 - AAA NOVEMBER - DECEMBER 2017 Online Magazine

FeAtUre singAPore

and the BBJ series. The company is building vision to establish and position the country as original equipment manufacturers (OEM) to
a new hangar in Singapore to meet growing a regional leader in the MRO market. However, establish MRO facilities in in the country. The
demand for business aviation services in we will have to wait and see how the plans OEM MRO companies are less concerned
the region. The facility’s new third hangar develop as there are bound to be a number about price and are more concerned about
will accommodate up to two BBJs or five of hurdles on the way. Infrastructure and red quality and consistency, which immediately
Gulfstream G550 aircraft. tape are still major concerns in most of these puts Singapore high on their priority. “To
The centre of gravity of aviation has countries and in the case of Thailand, political summarise, we at Frost & Sullivan do not see
clearly shifted to Asia Pacific. And while stability too, is an issue. It is a bit too early to any significant threat to Singapore’s position
Singapore’s MRO industry does not have to consider them as threats to Singapore.” in the immediate future. A lot will depend
worry about competition from the global Tanjavuru also highlighted the growing on how the plans of the other countries pan
market, it is airports within the region that influence of China in the region. “One should out over the next five years or so. As of now,
Changi should watch closely. also keep an eye out for developments in China seems to be the most likely Asian
China, which might impact Singapore. Airbus country that can become a credible threat,”
How Real are the Threats? has recently signed an agreement to increase emphasized Tanjavuru.
Working on gaining from the region’s collaboration in the sector and investments Limited availability of land is another
aerospace spurt, countries like Indonesia, are coming in from other players as well. growing concern. Although the Seletar
Malaysia, Philippines, Thailand and, Vietnam China Aerospace, Space &Technology Corp. Aerospace Park is expected to be occupied
are gearing up to be a threat. Talking about has set up a US$21 billion fund to invest in fully within 10 years or so, the government
these growing challenges, Tanjavuru added, innovative technologies. AMECO Beijing is has, however, already taken steps in this
“It may be too soon to say that there will also expanding their MRO capabilities rapidly. direction. According to a report from the
be a big threat, but yes, there is definitely They have recently expanded their component EDB, land has been allocated within the new
a chance as a number of countries have repair facilities in Chengdu and Beijing.” airport (where T5 will be constructed) for
realised the potential of the aerospace In Thailand, the government wants an industrial zone which will be launched in
industry and governments are trying to to turn U-Tapao airport near Pattaya the mid-2020s. Until then, Singapore will
ramp up investments in the sector. Thailand into a maintenance hub with help from continue to use Seletar Aerospace Park as
has unveiled a development plan up to 2031 investors including Airbus, which signed a the location for both runway-dependent and
to give the MRO as well as manufacturing memorandum of understanding with Thai non-runway-dependent aerospace industrial
sectors a push. Vietnam too has signed a few Airways to develop a major MRO facility. operations. In fact, to date, 60 per cent of
agreements with Airbus to promote their However, Singapore and Thailand may not Seletar’s 160 hectares of industrial land
aerospace industry. In Indonesia, six state- necessarily be competing directly against have been committed. The development of
owned enterprises in the aerospace industry each other in the MRO sector, as they are the Park and the new Changi T5 is seen as
have joined together to form a new company targeting different segments of the MRO Singapore’s strong commitment to growing
called the Indonesian Service Hub with a sector. Singapore has been attracting the aerospace industry.

LeFt: Singapore’s world-
class universities – Nanyang
Technological University and
the National University of
Singapore – as well as various
polytechnics are investing in
strengthening their facilities
oPPosite toP: With over
1,700 aerospace graduates
per year, the Singapore
government is investing
heavily in developing the
professionals of the future
32 ASIAN AIRLINES & AEROSPACE NOVEMBER / DECEMBER 2017 WWW.GBP.COM.SG/AAA