SIAEC launches phase 2 transformation; flights handled at 20% of pre-Covid level

THE number of flights handled by SIA Engineering Company (SIAEC) currently stands at about 20 per cent of its pre-Covid-19 level, said chief executive Ng Chin Hwee.

This is up from the 14 per cent that its line maintenance unit handled between April and September last year.

Speaking to the media at the official launch of phase two of SIAEC's transformation programme on Wednesday, Mr Ng said that while the recovery is "not (at) the rate we would like to see", he is encouraged that there is still continuous growth.

He added that as the vaccine roll-out progresses, he is hopeful that the confidence to travel will then return. As at Tuesday, 126 SIAEC staff had already been vaccinated.

At Wednesday's launch, the company showcased new digital tools and technology that it has invested in, as part of its efforts to deepen and broaden the scope of its transformation efforts across the areas of digitalisation and automation.

Last November, SIAEC said in an earnings call that S$40 million will be invested over the next three years into initiatives that will lift "digital readiness" and place it in a better position for the industry's eventual recovery.

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This includes the investment and development of an engine lifter for aircraft engine change, which will automate the lifting and lowering of engines. The engine lifter will halve the manpower and turnaround time needed for changing the engines of wide body aircraft types.

SIAEC also plans to adopt lean methodology in its operations. An initial line maintenance lean pilot project it conducted had reduced the time taken for maintenance checks by 25 per cent.

Additionally, the S$40 million investment will go into reskilling and upskilling the company's staff too.

Transport Minister Ong Ye Kung, who was guest-of-honour at the event, said: "Workers are the bedrock of any organisation's critical capabilities. The competency and adaptability of workers translates into enduring organisational capabilities and competitiveness.

"That is why in the midst of this pandemic crisis, government support has been centred on people."

With the transformation set to boost the company's productivity, SIAEC's Mr Ng said this will in turn lead to better financial performance, which is "exactly what the shareholders would expect from us".

"The unprecedented effects of the Covid-19 pandemic has made it even more imperative that we press on with the next phase of our transformation journey to strengthen our resilience and agility," he added.

This comes as the aviation industry is set to emerge in an entirely different landscape post-pandemic.

Said Mr Ong: "Post Covid-19, travel demand will likely be permanently altered, as many companies, corporates, may review their travelling policies... The competitive landscape will be reset after this Covid-19 earthquake."

As at 4.02pm, shares of SIAEC were trading up S$0.01 or 0.5 per cent at S$2.