Earlier this month, several news outlets reported that SIA Engineering (Philippines) Corporation (SIAEP) — a subsidiary of Singapore’s SIA Engineering Company Limited (SIAEC) — is set to begin operations at Ninoy Aquino International Airport (NAIA) by September 2025.
The announcement, echoed in multiple publications and highlighted by the San Miguel Corporation (SMC)-led New NAIA Infra Corp. (NNIC), was framed as a “big boost” for Philippine aviation, promising faster aircraft turnaround, more technical support, and local job creation.
However, the marketing and social media posts from SMC/NNIC offered very few operational details. No hangar number, no tooling specifics, and no manpower plans were disclosed. When we reached out to SIAEP earlier this week for clarification, they did not respond.
The Feasibility Question: Full MRO in Just a Month?
Starting full base maintenance — work involving complete aircraft overhauls, structural inspections, and cabin refurbishments — within a month at NAIA seems highly unlikely. Establishing such operations requires a certified and equipped hangar, specialized tooling and machinery, regulatory approvals, and a large pool of skilled manpower. These aren’t resources that can be put together overnight unless SIAEP is moving into an already certified and fully equipped space, something that has not been confirmed.
Proving Line Maintenance: A More Realistic First Step
One possible explanation is that SIAEP might initially be launching proving line maintenance rather than full base maintenance. Line maintenance focuses on lighter, routine tasks such as pre-flight and transit checks, minor repairs and adjustments, routine component changes, and overnight servicing. These activities can be performed without the need for a large hangar, require significantly less tooling compared to base maintenance, and are easier to scale up once infrastructure is ready.
Starting with line maintenance would allow SIAEP to establish a presence at NAIA quickly, meet regulatory requirements in phases, and demonstrate capability to airline customers before committing to the more resource-intensive operations involved in base maintenance.
Which Hangar? Still a Mystery
The announcement doesn’t specify which hangar inside the NAIA Complex will host SIAEP’s initial operations. Lufthansa Technik Philippines (LTP) occupies the largest MRO footprint at Villamor Air Base (VAB), and other hangars are already in use for airline maintenance or cargo operations. If no hangar is immediately available, SIAEP could potentially begin with ramp-based line maintenance using existing parking bays while waiting for a suitable facility to become available.
It is possible that SIAEP could redeploy resources from its existing operation in Clark, moving some tooling and personnel to Manila for the launch. Another approach would be to hire locally and gradually build a Manila-based team while outsourcing specialized tasks to Clark until NAIA operations mature. Without official statements, it is unclear which path SIAEP will take. The absence of such details fuels speculation about the readiness of the operation.
The LTP Angle: A Negotiation Tool?
This development also comes at a time when Lufthansa Technik Philippines (LTP) faces a dramatic lease hike from NNIC, with rates reportedly jumping from about PHP65 per square meter to PHP710 per square meter. The 25-year lease expires at the end of August 2025, and the increase could translate to roughly PHP160 million per month. The sudden announcement of SIAEP’s entry into NAIA could be interpreted as a strategic message from NNIC to LTP — a signal that if they do not agree to the new rates, another MRO is ready to move in. Even if SIAEP’s first phase involves only line maintenance, the optics alone could shift bargaining leverage in NNIC’s favor.
Implications for Philippine Aviation Competitiveness
If SIAEP manages to successfully establish operations at NAIA, even on a small scale, it could reshape the competitive landscape of the country’s MRO sector. More players could mean more competitive pricing, potentially lowering maintenance costs for airlines. Improved turnaround times for aircraft serviced in Manila would benefit carriers who currently need to send aircraft to Clark or abroad for certain tasks. A more diversified maintenance ecosystem would reduce the industry’s reliance on a single major MRO provider, while also making the Philippines more attractive as an aviation hub for regional carriers.
However, if this launch turns out to be more of a strategic bluff in the context of lease negotiations rather than a genuine operational expansion, it could undermine confidence in Manila’s ability to attract and sustain new aviation investments. Airlines may be hesitant to commit if they sense instability or uncertainty in the local maintenance landscape.
The reported September 2025 launch of SIAEP at NAIA is generating significant buzz — but without clear operational details, it remains uncertain whether this marks the beginning of a fully functional base maintenance facility or simply a proving phase for line maintenance. Either way, the move has strategic implications not only for SIAEP and NNIC but also for LTP and the broader competitiveness of Philippine aviation. In the coming months, we will see whether this is the start of a genuine expansion of NAIA’s MRO capabilities or a calculated move in a high-stakes lease negotiation.