SATS unveils continued catering deal with Singapore Airlines

It's a five-year contract.

According to an SGX release, SATS Ltd. (SATS) is pleased to announce the renewal of its ground handling and inflight catering contracts at Singapore Changi Airport with Singapore Airlines (SIA) today.

SATS’ previous ground handling and inflight catering contracts with SIA were firm for three years, starting from 1 October 2009, with an extension option for a further two years.

Both companies, however, have reached an agreement to renew these contracts commencing retroactively from 1 October 2012 for a firm five-year tenure, with an option to extend for another five years. The scope of services, covering passenger and ramp handling, aircraft interior cleaning, inflight catering and cabin handling, remains unchanged.

Signing the contracts on behalf of SATS was Mr Tan Chuan Lye, its President and Chief Executive Officer, and on behalf of SIA was Mr Tan Pee Teck, its Senior Vice-President for Product and Services.

Remarked Mr Tan Chuan Lye: “SATS has enjoyed a great and successful partnership with SIA for nearly 40 years. This contract renewal not only reinforces the endorsement of SATS as the strategic partner of choice for SIA, it also underscores our strong position at Singapore Changi Airport. We strongly value this longstanding relationship, and remain committed to driving joint projects for productivity and service improvements, and more importantly in supporting SIA to uphold its unparalleled service delivery.”

“At our home base and hub at Singapore Changi Airport, we recognise the importance of having a strong and reliable partner to provide a well-integrated ground and air travel experience to our customers. SATS has done well in carrying out this role. This contract renewal enables us to continue delivering the warm hospitality that SIA is renowned for and that our customers have come to expect,” said Mr Tan Pee Teck.

The contract renewal is expected to have material impact on the Group’s net tangible assets per share and consolidated earnings per share for the current financial year.