09-11-2014, 06:34 PM
(07-11-2014, 09:08 PM)csl123 Wrote:(07-11-2014, 06:59 PM)specuvestor Wrote: Increasing or not, competition is always there. Unless there is an overwhelming competitor into the market, it is irrelevant
But I think the on-wing servicing would be what I consider "what-is-new"
The value chain effect of SIA and Tiger losing competitiveness will affect SIAEC because of diminished hub effect. As I wrote on SIA thread, SIA problem is not going to be a singular company problem... There is strategic 2nd and even 3rd order impact
I'm also wondering what % of bottomline does SIA and tiger contribute, with 50% sales.
Increased competition reduced profitability, this is business 101. Particularly in this case, large OEM competitors are moving into MRO space.
hi csl123,
My general understanding as an outsider is that large OEM competitors have been around for the longest time but generally, they prefer to form JVs with pure MRO players or airlines to carry out the 'dirty' work. Particularly for SIAEC, it is dependent on its parentage (SIA) to form alliances with the various OEMs. Therefore, as you mentioned "OEM competitors are moving into MRO space", would you actually mean (1) OEMs are going at it alone now, (2) OEMs are providing more after sales services than before.
scanned through some news and i do observe some of the OEMs winning contracts on their own (esp UTC):
http://www.mro-network.com/news/2014/08/...racts/3635
http://www.mro-network.com/news/2014/05/...rdier/3150
http://www.mro-network.com/news/2014/02/...gines/2625
http://www.mro-network.com/news/2013/06/...tract/1040