A shortage of skilled manpower has affected Hong Kong Aircraft Engineering Co's (HAECO) profitability in 2012, and the issue is expected to persist in 2013.
The MRO company says it sold 1.3% fewer manhours for airframe maintenance in 2012 than in 2011 because it was unable to meet the demand for work.
In its financial results released on 12 March, chairman Christopher Pratt says HAECO is also expecting to do less airframe maintenance work in 2013. The company is expecting to sell 1.2 million manhours in the first half of 2013, compared with the 1.6 million sold in the same period last year, because of a shortage of skilled and semi-skilled workers.
"Although these labour shortages may ease in the second half of 2013, the first half shortfall is likely to have a material adverse effect on overall group turnover and profit for the full year," says Pratt, adding that demand for line maintenance in Hong Kong is expected to "remain stable".
HAECO reported a 3.8% increase in its net profit in 2012 to (HK$) 909 million ($117 million), compared with HK$876 million a year earlier.