Singapore consolidates aerospace supremacy

At the 2014 Singapore Airshow deals worth more than US$32 billion were signed up. This month, the region’s leading aerospace exhibition looks set to exceed that record as Asia-Pacific aviation continues its world-beating expansion.

by CHIEF CORRESPONDENT, TOM BALLANTYNE  

February 1st 2016

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Singapore’s position as the region’s leading aviation hub is unassailable. For the last two decades, Singapore’s aerospace industry has grown at an average of 10% a year. Read More » It was worth some $8.5 billion in 2015 and this figure is forecast to increase to $9 billion by year end. It’s MRO business alone accounts for 25% of the region’s total MRO contracts.

The 2016 Singapore Air Show is forecast to top deals made at the 2014 show

Singapore has more than 100 companies who offer airlines cutting edge aerospace design and manufacturing services. It also has the largest number of aerospace Original Equipment Manufacturers (OEMs) in the region, including the presence of mulit-national companies, Airbus, Boeing, GE Pratt & Whitney and Rolls-Royce.

Rolls-Royce’s global production center for assembly and testing of Trent 900 and Trent 1000 engines in Singapore has been producing engines for more than a year. The engine maker also manufactures fan-blades in Singapore for these engine types.

Rolls-Royce has joint venture partnerships with SIA Engineering (SIAEC), Singapore Aero Engine Services and International Engine Component Overhaul. The latter serves the global market. It also is an important MRO centre for Rolls-Royce.

North American manufacturer, Pratt & Whitney, this month opened a manufacturing plant that will produce GTF (geared turbofan) fan blades and turbine disks for its new generation PW1000 engines. It will be one of only two sites in the world that will manufacture the sophisticated component. The other is in Michigan in the U.S.

The 300-hectare Seletar Aerospace Park is the centre piece of Singapore’s aerospace industry and a major reason for its dominance in the region. The dedicated industry park allows companies to reap the benefits of a world-class business infrastructure, complete with runway access, and also the synergies of cluster integration.

Singapore is the location of several aerospace regional distribution centres. Boeing Integrated Materials Management established its Asia Regional Centre in Singapore, where it assists airlines across the region to manage and maintain their spare parts inventories.

Embraer also chose Singapore as its regional logistics and components hub, where it holds spares and rotables valued at more than $9 million to ensure round-the-clock parts, maintenance and repair and inventory services for Embraer customers in the region.

Airbus, Bombardier, GE Aviation, Messier-Bugatti-Dowty, Pratt & Whitney and Rolls-Royce also operate spare distribution facilities in Singapore.

IFE manufacturer, Panasonic Avionics Corporation and SAIEC have established a joint venture to maintain and repair in-flight entertainment (IFE) and communication systems for most Airbus and Boeing aircraft, including new-generation models, the A380 and the B787.

European manufacturer, Safran Electronics, has formed a joint venture with SIAEC to operate a dedicated Centre of Excellence & OEM warranty repair centre for avionics components.

Fellow European manufacturer, Thales, has built an avionics manufacturing facility in Singapore for various Airbus aircraft, including the A320 and the A330. Key avionics systems that are solely manufactured in Singapore include the Flight Management and Guidance Computers, Spoiler-Elevator Computers, Flight Augmentation Computers and the Liquid Crystal Display Units. Singapore is one of the company’s two manufacturing facilities in the world for Boeing 787 Dreamliner’s Electric Conversion System.

All of the leading aerospace OEMs have chosen Singapore as the site of their important research and development (R & D) facilities. Similarly, they are deeply involved in programs to train the future skilled engineers and technicians necessary for the expansion of Singapore’s aerospace sector.

Singapore has become a major centre for aircraft leasing, with Asia’s largest lessor, BOC Aviation, headquartered in the city. With a comprehensive double tax avoidance agreement (DTA) network of 67 countries and a competitive corporate headline tax rate at 17%, Singapore aims to be the location of choice for aircraft and engine leasing companies wanting to tap into the Asia-Pacific airline market. The top ten leasing companies in the world have offices in Singapore.

Singapore now has become the “must be there” location for global aerospace companies and its potential for growth appears endless. The Singapore Economic Development Board (EDB) said: “The long-term prospects of the aerospace industry remain highly positive despite the short-term uncertainties in the global economy,” it said.

“Air traffic and aircraft fleet size in Asia are poised for strong growth, bolstered by rising demand from regional economies such as China, India and the ASEAN nations. The global aerospace industry is in a phase of exciting development. The B787 Dreamliner and the A350 are already in service. More efficient engines such as the CFM Leap-X and the Pratt & Whitney PW1000G are being introduced.

“The drive towards greater fuel efficiency will increasingly push next generation aircraft to use new technologies, including extensive applications of composites in airframes, and the development of more fuel efficient engines. Singapore is committed to the development of our manpower capabilities and infrastructure to support growth in MRO, manufacturing and R&D activities in Singapore. This will put us in strong position to capitalize from emerging trends and emerging markets in Asia Pacific.”