The Philippines’ Maintenance, Repair, and Overhaul (MRO) sector may soon see a new player in the capital, as industry observers speculate on the possible entry of SIA Engineering Philippines (SIAEP), a subsidiary of Singapore-based SIA Engineering Company (SIAEC). While the exact nature of SIAEP’s potential Manila operations remains unconfirmed, the move could mark another significant development in the country’s increasingly competitive aviation services industry.
We spoke with Jeffrey M. Espiritu, General Manager for Asia Pacific at France-headquartered aerospace powerhouse Daher Industrial Services, who shared his insights on the local MRO scene.
Strategic Growth in a Key Market
Any expansion by SIAEP into Manila would likely align with SIAEC’s broader overseas growth strategy. “SIAEC views Line and Base Maintenance as complementary but independent business lines that don’t necessarily have to be launched together to be profitable,” Espiritu said. He noted that SIAEC’s corporate structure reflects this separation, with distinct leadership and marketing teams for Line and Base Maintenance. Globally, the company’s Line Maintenance network has a wider reach, while Base Maintenance facilities are concentrated in select hubs such as Clark, Pampanga. Espiritu suggests that, if SIAEP does establish operations in Manila, it could initially focus on servicing flights within the Singapore Airlines Group — namely Singapore Airlines and Scoot — while leveraging its regional network to attract other carriers already working with SIAEC in Asia. “Many airlines prefer the simplicity of dealing with one provider for multiple airports in a region,” he added.
Cebu Could Be the Next Step
Espiritu, an 18-year veteran of the aviation industry with leadership experience at Cebu Pacific Air, Alpha Aviation, SIAEP, Dornier Technology, PAL Express, and Omni Aviation, also sees Cebu as a likely candidate for future expansion. “SIAEP’s entry into Manila is long overdue and delayed only by the fact that they used to have a joint venture with Cebu Pacific Air, and therefore already had a foot in the door of Manila’s line maintenance business scene. The dissolution of that venture left a gaping hole in SIAEC’s ASEAN-wide line maintenance business network that this move finally addresses. Because of this, my opinion also is that SIAEC line maintenance is already looking to open Cebu, as the airport there continues to attract heavy hitters. You can’t really approach Asiana or Emirates if you don’t have Cebu,” he said. This possible move into Manila — and potentially Cebu — fits into a larger trend of global MRO providers strengthening their presence in the Philippines, drawn by its strategic location, skilled workforce, and growing airline traffic.
Potential Effects on Existing Players
While SIAEP has not confirmed the details of its Manila plans, industry speculation has already turned to its possible impact on existing MRO providers. Lufthansa Technik Philippines (LTP) may not see immediate disruption, as it handles limited Singapore-registered aircraft, but Espiritu believes competition for foreign wide-body business, particularly Boeing B787s and Airbus A350s, could intensify. Aviation Partnership (Aplus), Cebu Pacific’s Line Maintenance arm and SIAEC’s former joint venture partner, could feel a more direct effect. If SIAEP were to serve Singapore Airlines Group flights in Manila, Aplus might lose that portion of its business. “It’s a substantial number of flights, but Aplus could absorb the loss through Cebu Pacific’s growth and new contracts like their recent deal with flyadeal in Saudi Arabia,” Espiritu said.
Why the Philippines Appeals to Global MRO Players
The Philippines has become increasingly attractive to international MRO providers due to its competitive labor costs, a skilled and English-speaking workforce, and its strategic position along major Asian air corridors. Espiritu sees a possible SIAEP Manila operation as a “long-delayed return” to the capital after the dissolution of its joint venture with Aplus. “It would close a gap in their ASEAN-wide Line Maintenance network and make them more appealing to international carriers,” he said. However, Espiritu is cautious about expecting large-scale infrastructure investments right away. “They already have facilities in Clark, and any decision to build in Manila would have to compete with SIAEC’s priorities in India and Malaysia. Still, a hangar can become necessary if regulators or customers require it,” he explained.
Raising the Competitive Bar
Even without official confirmation, the possibility of SIAEP setting up shop in Manila has the potential to raise industry standards. “The presence of a world-class MRO group can push everyone else to step up their game,” Espiritu said, referencing Michael Porter’s theory of competitive clusters. “If you do subpar work in this industry, word spreads fast.” For passengers, the changes would likely be invisible, as MRO work happens behind the scenes. “That’s how it should be. The real impact would be in more jobs, better skills training, and higher service quality across the board,” Espiritu noted. If SIAEP does enter the Manila market, it would further heat up competition in the Philippines’ MRO sector — potentially sparking new rivalries for foreign wide-body contracts, creating opportunities for regional partnerships, and strengthening the country’s position as an emerging MRO hub in Asia.