Q: How is the recession affecting you and how will you handle it in the months to come?
A: Since our inception in 1975, ST Aero has expanded to become one of the leading aerospace companies in Singapore with a strong track record for quality, reliability and safety. Like everyone else, we will be somewhat affected by global economic and industry downturns. However, we are better poised to adapt to market fluctuations because of our relentless focus on our customers' needs, our competitive edge and our market position.
Q: What was the impact of 11 September on your business?
A: Our military business is relatively unaffected. Our commercial business is stable; some of our key current programmes include the passenger to freighter (PTF) conversions with Boeing for UPS and DHL; and modification works including the Boeing MD-10 programme for FedEx. ST Aero has always emphasised the need to stay lean and competitive.
Q: Can you highlight your most recent programmes, together with any news of impending joint ventures?
A: ST Aero signed a JVA with FR Aviation to set up a MRO operation in Bournemouth, UK and we have an outstanding programme on the Boeing MD-11 insulation blanket modification for FedEx which is currently being done in our Changi hangar. In addition to that, we are performing MD-10 conversions for FedEx.
Another recent programme is the re-delivery of the first production Boeing 757 Special Freighters (SF) to DHL on 5 November 2001 from our US site. The aircraft is the first of 17 aircraft to be converted by ST Aero under the design, development and conversion programme we undertook with Boeing.
ST Aero and Boeing have also re-delivered three MD-11 converted freighters to UPS from our Paya Lebar plant. These are three of 13 MD-11s that Boeing will acquire and convert for UPS. The agreement between Boeing and UPS also includes options for 22 additional MD-11s.
Q: How important is the freighter conversion business to you and where do you see that business progressing?
A: Currently, about 30% of our commercial business comes from PTF and other modification work. In addition to freighter conversions, we perform work including avionics modification.
Despite the current industry slowdown, the outlook for air cargo activities is expected to be encouraging once the industry bounces back.
Q: Where do you see growth coming from?
A: Geographically, ST Aero will continue to pursue growth opportunities in the international arena. We are well-placed in Asia and the US. We will continue to develop these markets and reach out to Europe and China.
From the industry aspect, the air cargo business is expected to sustain and possibly enjoy further growth. There will be a demand to convert aircraft.
Q: Where do you see ST Aero in five years time?
A: Building on our track record, I see ST Aero taking on more challenges in value-added, high-technology, engineering and development support services, particularly in aircraft modifications and conversion work. We will also continue to build on our total support programmes to provide a more comprehensive service to aircraft operators worldwide. ST Aero will continue to focus on being a premier, global provider of third-party maintenance and engineering services.
Q: What gives you your edge in a highly competitive market?
A: An example of our customer relationship management initiative is ‘e-Airplane Services' which comprises a series of specially tailored websites to provide our customers with 24h online access to information on the status of their aircraft being serviced in our workshops, as well as other databases.
Source: Flight Daily News
