Singapore MRO provider SIA Engineering warned on Wednesday (28 October) in a statement to the city-state’s stock exchange that the COVID-19 pandemic “continues to have an unprecedented adverse impact on the aviation industry and consequently on the MRO business (and) all segments of the group were impacted during the first half of the financial year as low flight activities resulted in low work volume” for the second quarter and the half-year ended 30 September.
“Due to significant decline in hangar revenue projections brought about by lower flight hours, large number of aircraft taken out of operations and parked and the likelihood that some of the parked older generation aircraft will not return to operation, the group will be recognising a non-cash impairment provision against its base maintenance unit’s assets and is working on finalising the quantum of impairment, which is expected to have a material impact on the group’s financial results” for the first half of fiscal year 2020-2021,” the company said.
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