Paul Lewis/SINGAPORE
Singapore, for its comparatively small size, is home to one of the most comprehensive collections of aerospace businesses of any country in South-East Asia. There are now more than 70 separate aerospace ventures operating from the island republic and, in spite of the recent regional economic downturn, this is continuing to grow.
The local Economic Development Board (EDB) estimates that the aerospace sector had generated a record output of $1.8 billion ($1.11 billion) by the close of 1997, a jump of 16.7% over the previous year. The industry collectively employs a workforce of close to 9,500 people and new investments over the past 12 months are projected to create 800 new positions.
Singapore's success in promoting itself as an Asian aerospace centre can be attributed to several key factors, not the least of which are "pioneer status" tax breaks for startup companies. The Government has also invested considerable sums on infrastructure improvements, making Singapore an extremely user friendly environment in which to operate.
The island remains politically and economically stable compared to many of its less fortunate financially stricken neighbours. "Our decision to move here has been proven right by recent circumstances-Singapore is by far the most stable platform. Things work here," observes Elco Wagner, managing director of recently opened Fokker Services Asia.
Besides offering a geographically advantageous position from which to serve the region, Singapore is home to some sizeable domestic customers of its own. Singapore Airlines (SIA) remains one of the world's most profitable airlines, with a $12.7 billion orderbook for new Boeing 777s. There are then the support needs of the Republic of Singapore Air Force and its fleet of 250 aircraft to consider.
Other advantages publicised by Singapore include an internationally endorsed regulatory body. The Civil Aviation Authority of Singapore (CAAS) has a 17-year-old bilateral airworthiness agreement with the US Federal Aviation Administration. CAAS is now working with the European Joint Aviation Authorities on endorsement of its recently promulgated Singapore Airworthiness Requirement 145.
The Singapore Aviation Academy, which is run by the CAAS, has also been working with the EDB and the Singapore Institute of Engineers to advance local specialised aerospace training. Singapore's technical and tertiary-level education institutes have also been busy providing specialist aeronautical courses, such as in the field of electrical and mechanical engineering.
Singapore faces challenges, the most important of which is ensuring continued competitiveness. Local land and labour costs are among the highest in Asia and will be further distorted by massive currency devaluations in nearby countries. "Costs are high," concedes Lucas Aerospace Singapore general manager Y P Lim, who adds, however: "When you look at productivity, it is still worth doing business here because of the high value-added growth."
ENGINE REPAIR AND OVERHAUL
According to the EDB, repair and overhaul constitutes some 87% of local aerospace output, with component manufacturing making up the balance. Of this, aircraft engine and component servicing makes up the largest single proportion of business and accounts for four of the six major new industry investments made in 1997.
Pratt & Whitney and Rolls-Royce have both committed to new joint ventures in Singapore on the back of the valuable amount of business done with the Singapore national carrier. The US manufacturer in July signed a memorandum of understanding with SIA Engineering (SIAE) to take a 51% stake in a new joint engine repair and overhaul company.
SIAE's Engine Overhaul Division will transfer most of its staff and engine work, apart from the R-R Trent, to the new partnership. P&W, in return, will make the venture its exclusive "centre of excellence" in the Asia-Pacific and Indian subcontinent regions. Work will focus on the PW4000 family of engines, of which SIA is the largest single operator in the world, as well as the JT9D and CFM International CFM56.
P&W has also made Singapore the site of its second regional headquarters, after Paris. "It will eventually take responsibility for co-ordinating all P&W activities in the Asia-Pacific region. We're going to be the operational centre not only for sales and marketing, but aftersales support," says local P&W vice-president Bob Keady.
Other recent developments include P&W Eagle Services' acquisition of Interturbine Flight Repair's Singapore operation, as part of its take-over of the Dutch company. The new P&W-owned site, which specialises in stator and seal repair and refurbishment, is renamed Component Overhaul Services (COS).
COS will operate alongside P&W's three local joint ventures. They consist of Asian Surface Technologies (a partnership with SIAE and Praxair specialising in compressor blade treatment), Combustor Airmotive Services (a joint venture also with SIAE providing combustion chamber repairs), and Turbine Overhaul Services (a joint venture with Singapore Technologies Aerospace (ST Aero)), focused on turbine blade repair and refurbishment.
According to P&W, it has invested in the region of $120 million to date in its joint venture activities in Singapore. Collectively, they employ some 650 people and are expected to generate a turnover of some $100 million during the course of 1998.
SIA's 1995 order for 77 Trent 800-powered 777s led the way for R-R Aero Engine Services to invest in its first industrial joint venture in Singapore. The UK manufacturer and SIA have each taken a 50% stake in the new $15.5 million company, International Engine Component Overhaul (IECO). We're working to get ourselves operational for Asian Aerospace," says new general manager, John Wright.
IECO' s 4,000m2 (43,000ft2) plant will concentrate primarily on the servicing of RB.211 and Trent engine nozzle guide vanes, as well as compressor stators. Processes will include high temperature fluoride cleansing and vacuum plasma spraying.
Apart from SIA, the company is targeting other big R-R operators in the region, such as Cathay Pacific and Qantas, and has been given exclusive coverage of the Asia-Pacific region extending as far west as Pakistan.
General Electric Engine Services and partner Sermatech are also planning to open their new joint venture, Airfoil Technologies International (ATI), during the Asian Aerospace show. ATI will refurbish and repair compressor blades for a range of engines, beginning with the GE CF6, CFM56 and P&W JT8D and JT9D models. "It will be capable of processing up to 1 million airfoils a year, providing very quick turnaround times," says GE Engine Services regional vice-president Bill Hoernschemeyer.
ATI further builds on the extensive array of compressor, combustor and turbine component overhaul work already performed in Singapore by GE Aviation Service Operation. The company now employs a local workforce of some 900 staff, including 100 at ATI's new 6,000m2 Loyang plant.
AIRFRAME AND ACCESSORIES
The vast bulk of Singapore's civil airframe maintenance work is in the hands of either SIAE or ST Aviation Services, but some smaller niche players have successfully managed to set up shop locally. The most recent arrival has been Fokker Services Asia, which acquired LAB Asia Pacific's two-bay, 5,000m2 hangar at Seletar Airfield in early 1997.
The company is primarily geared toward supporting (up to and including heavy D checks), the estimated 280 Fokker F27, F28, 50, 70 and 100 aircraft still being operated in the region. It is also certified to perform lighter B and C checks on Aero International (Regional) ATR 42/72 turboprops. Customers include Bangkok Airways, Merpati Nusantara Airlines, Myanma Airways and TransAsia Airways.
Jet Maintenance is now into its third year of operation in Singapore and, according to general manger Ruedi Kraft, enjoyed an "excellent 1997", generating a turnover of $7 million. The Jet Aviation subsidiary was set up at Seletar to provide maintenance support for business aircraft, including the newer Canadair Challenger 604, Cessna Citation X, Dassault Falcon 900EX, Gulfstream IV, Raytheon Hawker 800 and 900 and Bombardier Learjet 45/60 models.
Its activities have since broadened out to include the creation of a local operations centre. "We offer full aircraft management for local customers, arranging landing rights, overflight clearance, catering and even a limousine pick-up. All you have to do is fly the aircraft from point A to B and we make sure all the information and management is there, including the crew," says Kraft.
Local maintenance capabilities are not confined to just the market for fixed wing aircraft, but include helicopters. Samaero was established in 1977 by Eurocopter and ST Aero and offers a host of services including repairs, scheduled inspections, modifications, and local assembly and acceptance. Turboméca Asia Pacific provides associated support for Arriel, Arrius and Makila turboshaft powered machines.
A large number of subsystem vendors have also gravitated towards Singapore and established regional service centres, such as nacelle and thrust reverser supplier BFGoodrich (formerly Rohr) and landing gear specialist Dowty Aerospace. For many smaller niche players, such as AlliedSignal's specialist heat transfer equipment subsidiary LORI Asia, SIA and SilkAir's acquisition of new 777s, Airbus A320s and A340s offer the chance of valuable new work.
Lucas, in partial response to SIA's order for the 777 has invested $2 million in additional tooling to support its engine control and fuel management systems installed on the Trent 700/800 family of engines. Smaller orders for Trent-powered 777 and A330 widebody airliners from Garuda Indonesia, Malaysia Airlines and Thai Airways International have created additional opportunities for a company that now enjoys $80 million worth of repairs and spares business a year.
Nordam is also looking to expand its three-year-old operation in Singapore with the planned addition of an autoclave, says general manger Terry Boswell. This would allow it to move into the repair of flight surfaces and nacelles for CFM56-5, JT9D/JT8D and International Aero Engines V2500 turbofans. Its current capabilities centre on the repair and overhaul of CF6, CFM56-3 and PW4000 thrust reversers.
AVIONICS SUPPORT
The commercial avionics sector is also similarly well represented in Singapore, with the three principal players Honeywell Aerospace, Rockwell-Collins and Sextant Avionique each operating local service support centres.
A new addition is Matsushita Avionics Systems (MAS), which plans to have Singapore's first in-flight entertainment system repair site completed in time for Asian Aerospace '98. It will cover an area of 112m² in the startup phase and support the System 2000E equipment which forms the basis of SIA's KrisWorld and, later, the Wiseman system. "As the facility gets more mature, we'll be adding audio and video on demand," says MAS Asia-Pacific operations manager George Lim.
Source: Flight International