SIAE and STE

MRO (SIAE and STE) May be better bet than airlines as aircraft fleets expand amid uncertainty. While outlook for airlines is uncertain, steady growth of airline fleets is likely to be a boon to the MRO players, particularly in the fast growing aviation mkts of Asia and Latin America. Already China’s share of MRO activity in Asia is more than 20%, on par with SG. MRO players in SG can tap the growth in aircraft movements in Changi Airport, which grew 12% yoy in Kan to Apr 2012.