A-Sonic

A-Sonic: OSKDMG note that the recent news on the development of Changi Airport’s mega Terminal 5 will, besides cementing SG’s position as an air hub, benefit the local logistics and transportation-related services sectors with the expanding fleets of Asian carriers touching base in Singapore. House had earlier highlighted MRO players such as ST Engineering and SIA Engineering as key beneficiaries of the growing volume of repair works in the region. Another niche player, A-Sonic Aerospace, a logistics and freight-forwarding company, will also end up being a winner with the resultant rise in demand for leased aircrafts. This is a new segment which the company had been working on for the past few years, when it started acquiring pre-owned airframes and engines, and reassembling them at its preferred MRO in Europe and the Americas. Focusing on the single-aisle MB-83 planes, it has to date leased out two aircrafts and expects to lease out another two by the end of the year, with letters of intent to acquire one more aircraft, 3 airframes and 3 aircraft engines. House sees leasing revenue steadily ramping up, providing the group with a new source of high-margin, recurrent income.