Development of Aviation Industry from SIA-Boeing Deal
Ministry of Trade and IndustrySpeakers
Summary
This question concerns Mr Leon Perera’s inquiry into whether the SIA-Boeing deal included negotiated economic activities or parts manufacturing to support Singapore’s aviation industry. Minister for Trade and Industry (Industry) S Iswaran clarified that while the commercial deal was independent of government involvement, it will generate spin-offs through fleet modernisation and Boeing’s local aftermarket services. He highlighted a joint venture between SIA Engineering Company and GE Aviation for engine maintenance, repair, and overhaul services. Furthermore, the government is developing the Aerospace Industry Transformation Map to outline strategies for capturing sector growth. These initiatives aim to strengthen local capabilities in engine and airframe maintenance to support the industry's long-term development.
Transcript
2 Mr Leon Perera asked the Minister for Trade and Industry (Industry) regarding the $18.7 billion SIA-Boeing deal that was recently announced (a) whether there will be economic activities to be undertaken in Singapore that can support the development of our aviation industry as a result of this transaction; and (b) whether economic activities, such as the manufacturing of parts of the aircraft being ordered or provision of related services, were negotiated as a condition of the transaction.
Mr S Iswaran: SIA's recent order of Boeing planes was a commercial deal negotiated between SIA and Boeing. While the Singapore Government was not involved in the deal, the deal could lead to economic spin-offs for Singapore, through new business opportunities for Boeing's aftermarket services and new maintenance, repair and overhaul (MRO) activities.
First, the new aircraft will provide new opportunities for SIA to expand its network while supporting fleet modernisation.
Second, Boeing has a substantial aftermarket services presence in Singapore today, covering activities, such as pilot training, flight services, fleet management and digital aviation services, which could support SIA's expanded Boeing fleet.
Third, SIA Engineering Company (SIAEC) and GE Aviation have announced an agreement to establish a proposed joint venture (JV) in Singapore, which will provide engine MRO services for GE90 engines, as well as GE9X engines powering SIA's new fleet of Boeing 777X aircraft.
The Government, has been supporting capability building efforts across the diverse segments of our aerospace industry, including engine overhaul MRO and airframe MRO. To this end, we are currently developing the Aerospace Industry Transformation Map (ITM), which will lay out comprehensive strategies to ensure that we are well-positioned to capture the growth opportunities in the aerospace industry.