SIA Engineering Company Limited (“SIAEC”) announced yesterday that it had signed a maintenance training services agreement with Airbus, which leads to the appointment of SIAEC as an Airbus Maintenance Training Centre. Under this agreement, SIAEC Training Academy will be equipped with Airbus’ latest maintenance training devices and courseware for various aircraft types. This allows SIAEC to deliver engineering training to third-party airline customers and its own technical personnel.

The agreement also allows SIAEC to undertake contractual training for Airbus’ customers. While we think the agreement is positive for SIAEC’s presence as a maintenance training centre for Airbus in the Asia region, we do not expect to see material impact in the near-term. We currently have a SELL rating and FV of S$3.80 on SIAEC.

Source: OCBC Research - 17 Mar 2015