ST Engineering Bullish On Airbus A320neo Market As It Posts Profits

ST Engineering Bullish On Airbus A320neo Market As It Posts Profits | Aviation Week Network

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Chen Chuanren
May 16, 2023

ST Engineering — Credit: Roslan Rahman/Getty

SINGAPORE—First-quarter revenue for ST Engineering’s commercial aerospace segment has surpassed 2020 pre-COVID levels.

The Singapore-headquartered company continues to benefit from recovery across the Asia-Pacific region, as well as the popularity of the Airbus A320neo.

The company’s commercial aerospace segment reported 29% year-on-year (YOY) improvement in revenue to S$873 million, against the S$674 million in 2021. The group as a whole, which includes satcom services, posted 13% YOY improvement, at S$2.3 billion.

ST Engineering also secured S$747 million ($563 million) in contracts during the period, including a new order for at least two A330P2F freighters from a Japanese lessor, as well as CFM56-7B MRO contracts with Asian airlines and heavy maintenance for American airlines, the company says.

It adds that the passenger-to-freighter “learning curve” is improving—likely referring to the new P2F lines that will open in China and Turkey.

In its outlook, the MRO-provider also added that its U.S.-based Middle River Aerostructure Systems (MRAS) business will benefit from the A320neo fleet growth. MRAS is the single-source nacelle provider for the Leap 1A engines, and the company says the Leap 1A looks set to account for around 53% of the engine share.

ST Engineering says they are projecting 7,835 A320neo family deliveries through to 2032.

Chen Chuanren is the Southeast Asia and China Editor for the Aviation Week Network’s (AWN) Air Transport World (ATW) and the Asia-Pacific Defense Correspondent for AWN, joining the team in 2017.

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