Daily news - 19 Sep

SATS sees business growth despite aviation turmoil
Singapore Airport Terminal Services (SATS) is in a strong financial position and expects to grow both locally and globally despite the turmoil in the aviation industry. The company could leverage on its food service capabilities and expand into other areas, given efforts to position Singapore as an attractive tourist destination, CEO Clement Woon said at a media briefing yesterday. 'Our catering service does not have to be tied to the airport.' At Changi Airport, SATS - of which Singapore Airlines owns 81 per cent - has a market share of 78 per cent for ground and cargo handling and a market share of 83 per cent for inflight catering. Other industry players include CIAS and Swissport. Aside from the aviation industry, SATS also provides food services to hospitals such as St Luke's and NUH. SATS also plans to customise its airport services to suit the needs of its different clients. Currently, its airport handling and catering follows a traditional 'one size fits all' solution. However, going forward, it plans to create differentiated offerings to suit different tiers of customers - premium airlines, full service airlines and low-cost carriers (LCCs). Earlier this week, SATS announced a new low-cost inflight catering facility which will cater to both LCCs and full service airlines come January next year. Another emerging growth avenue is LCCs, Mr Woon said, pointing to LCC handling, given the strong growth of LCCs in Asia. While the bulk of its overseas revenue stems from Asia, SATS also has plans to grow beyond the region through selective acquisitions, increasing its shareholding in existing joint ventures as well as through strategic partnerships with strong global players. In Asia, SATS aims to increase its presence in both India and China.

Source: Kim Eng