Asian aircraft fleet size to grow by 51% and MRO revenues to tripple by 2030

London, UK -- (SBWire) -- 02/04/2010 -- In contrast to other aerospace markets, Asia's aircraft fleet size is projected to grow by over 51% to 25,000 by 2030 from its current level of 16,500 reported Singapore Government officicials today. At the same time, maintenance, repair and overhaul (MRO) revenues from the region is expected to triple its current US$22 billion figure over the same time period.

Part of this growth can be attributed to the growing economies and demands of China, India and other ASEAN countries, causing air traffic, aircraft fleet and aerospace MRO revenues to rise.

An Important Aerohub
These trends augur well for Singapore's aerospace industry. The Republic's smart investments in its capabilities – a pro-business environment, highly skilled workforce, aerospace MRO, manufacturing and R&D – have allowed it to become a strong aerospace hub and play a vital role in the global aerospace industry.

Indeed, Singapore has seen a steady growth in the number of budget carriers locating there recently, which in turn has driven the demand for MRO services for narrow-body carriers. More than 100 aerospace companies are already based in the Republic and in 2009 Singapore's aerospace industry had a total output of S$7.1 billion (US$5.1 billion) and employed over 19,000 workers.

Capitalising on Singapore's Strengths
As the Republic continues to invest in and develop its aerospace-related capabilities, infrastructure and manpower, leading aerospace players are taking advantage of what the country has to offer by extending their operations here.

One such organisation is Rolls-Royce. In July 2009, the global power systems company announced that it was building a Wide Chord Fan Blade (WCFB) factory in Singapore. The hollow titanium WCFB is an essential aircraft component which requires a sophisticated and complex manufacturing process. The fact that Rolls-Royce had chosen Singapore reaffirms it as the ideal location for high-value and high-end manufacturing.

Commenting on the new project, Sir John Rose, Chief Executive, Rolls-Royce, says, “Singapore has become a vitally important centre for the Group's operations and this latest investment in wide chord fan blade capability reflects our continuing confidence in Singapore as a place to locate high value-added manufacturing.”

The facility will be at the company's Seletar campus, together with its “Facility of the Future”, which tests and assembles Trent aero engines. This new factory is the first of its kind outside the UK to manufacture hollow titanium WCFBs. A total investment of S$700 million (US$504 million) has been put into Rolls-Royce's Seletar campus, which will create around 500 jobs for skilled workers once it is fully operational. Rolls-Royce's investment is expected to attract other aerospace companies and suppliers to base their component manufacturing in the country. At the same time, it will create further spin-offs for job creation and business opportunities in other sectors such as logistics and precision engineering.

Another industry leader, Eurocopter, the world's leading helicopter manufacturer, has reinforced Singapore's status as a top aerospace hub with a recent announcement that it will be moving its Eurocopter South East Asia (ESEA) regional headquarters to a larger, state-of-the-art facility in Seletar Aerospace Park (SAP) in the third quarter of 2010.

Since SAP has an existing airport, ESEA will be able to take advantage of its facilities for flight operations. ESEA will serve as Eurocopter's technical hub for Asia, serving 14 countries and employing almost 200 employees. At the same time, researchers from EADS Innovation Works will also make the move to the new facility, which will allow it and ESEA to not only expand MRO and training services, but also R&D activities.

Opportunities between Japan and Singapore's aerospace industries are also prospering in synergistic ways. In refining their global strategies, Japanese aerospace companies have been reaching out to their customers worldwide by taking advantage of Singapore's strengths to expand their manufacturing capacity and supply chain.

One example is SIA Engineering Company's (SIAEC) 10-year Maintenance Service Agreement with Panasonic Avionics Corporation (PAC), the leading supplier of aircraft in-flight entertainment (IFE) systems. PAC manufactures the eX2 IFE, a highly advanced system which is currently installed in Singapore Airlines' latest aircraft fleet.

Under the Maintenance Service Agreement, SIAEC will oversee the maintenance of the eX2 IFE systems present in the Airbus A380, A330, A340-500 and the Boeing B777-300ER. Included in the maintenance service are trouble-shooting, rectification and functionality checks to maintain high levels of operational reliability for the Panasonic entertainment systems.

Government Initiatives
The Singapore government has also been on top of infrastructural developments in order to stay ahead of the game. One of the major highlights is the 300- hectare SAP, which is constantly being upgraded to meet the industry's growth and demand. Currently, SAP's facilities are being developed with runway extensions to accommodate larger aircraft, a substation that will supply power to the park, a commercial complex for aerospace companies, new roads, a new traffic control tower and a shared hangar facility.

Another top priority is human capital development. Since 2003, the number of aerospace professionals graduating from Singapore universities has been rising, indicating the growing popularity of aerospace programmes. In turn, new courses have been introduced, like the engineering degree offered by UniSim, in collaboration with the UK's Cranfield University. Also, EADS and the Singapore Economic Development Board (EDB) announced in October that they will sponsor aviation studies of up to four years for six PhD students, under the Joint Industry Postgraduate Programme (JIP). JIP was launched to develop the country's postgraduate talent in science and technology.

Upgrading Singapore's supporting industry is another area being addressed. Many companies in the country are already familiar with the precision and cost reductions demanded by the electronics industry, and have learned how to make inroads into high entry barrier industries like aerospace, medical devices and oil and gas. Building on this is EDB's Supplier Development Initiative, aimed at developing suppliers and linking them with Original Equipment Manufacturers (OEM). In the current downturn, aerospace OEMs are reviewing and restructuring their supply chains, which presents unique opportunities for the country's capable supporting industry.

Industry Event

The MTA series of exhibitions return to Singapore for the 18th time from the 23-26 March 2011 and will provide aersopace MRO's with "hands-on" access to some of the most advanced metalworking technology available in the world today. The largest international exhibition of its kind in the region, the last event was held in 2007 and covered 20,000 sqm, saw 299 of the worlds leading companies exhibit and attracted 13,778 high quality visitors from across the whole of Southeast Asia.

To receive further information on this event simply email the organiser at atodd@oesallworld.com or visit the web site at http://www.allworldexhibitions.com/metal.