SINGAPORE, 7 NOVEMBER 2012 – 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 Tan Chuan Lye, its President and Chief Executive Officer, and on behalf of SIA was Tan Pee Teck, its Senior Vice-President for Product and Services.
Remarked 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.
None of the Directors or controlling shareholders of SATS has any interest, direct or indirect, in the above transaction, other than through their respective interests (if any) in the company.
With over 60 years of operating experience and a growing regional presence, SATS is Singapore’s leading provider of gateway services and food solutions.
Our comprehensive scope of gateway services encompasses airfreight handling, passenger services, ramp handling, baggage handling, security services, aircraft interior and exterior cleaning as well as cruise handling and terminal management. Our food solutions business comprises airline catering, institutional catering, and food distribution and logistics.
Today, SATS handles about 80% of the scheduled flights and serves close to 60 scheduled airlines at Singapore Changi Airport. We are present in 36 airports in 10 countries in Asia and the Middle East. Through our non-aviation food business, we have also established our presence in Australia. SATS has been listed on the Singapore Exchange since May 2000. For more information, please visit www.sats.com.sg.
INVESTOR AND MEDIA CONTACTS:
Sandy Leng Julia Wei
AVP, Investor Relations Senior Manager
SATS Edelman Public Relations
DID: (65) 6541 8200 DID: (65) 6347 2327
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