Singapore Airport Terminal Services

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Singapore Airport Terminal Services Ltd
Singapore company sats logo.gif
Company Information
Founded: 1972
CEO: Clement Woon
Headquarters: Singapore
Parent: Temasek Holdings
Co. Slogan: One With You
Website http://www.sats.com.sg


Singapore Airport Terminal Services Limited (SIAT.SI) (Stock Exchange of Singapore); abbreviation: SATS; Simplified Chinese: 新加坡机场航站服务有限公司 is Singapore’s leading provider of Airport Services and Food. It is the largest ground-handling and in-flight catering service provider at Singapore Changi Airport. SATS controls about 80% of Changi airport's ground handling and catering business.

SATS' network of ground handling and airline catering operations spans nearly 40 airports across Asia Pacific with presence in China, Hong Kong, India, Indonesia, Macau, the Maldives, the Philippines, Taiwan, and Vietnam.

SATS underwent a rebranding exercise in Apr 2007, adopting a completely new brand identity with its own orange colour after bearing the SIA ‘bird' logo for many decades.

It was part of the Singapore Airlines Group (SIA) and was diversified from SIA on 1 Sep 09.

SATS acquired Singapore Food Industries (SFI) on 17 April 2009 as part of its new strategy plan to seek opportunities both in Singapore and overseas to grow its businesses in airport and food services. SFI is one of Singapore’s largest integrated food services company. SFI has a wide spectrum of food-related businesses including food materials supplies, distribution, catering, manufacturing and processing. SFI also has significant operations in the UK.

SATS subsidiaries are SATS Airport Services, SATS Catering, SATS Security Services, Aero Laundry & Linen Services, Aerolog Express, Country Foods Pte Ltd.

Contents

[edit] History

[edit] Origin

The history of SATS can be traced back to the very beginning of commercial aviation in Singapore. In the early years, ground-handling services were provided by a department of Malayan Airways, which became Malaysia-Singapore Airlines (MSA) in 1967. Five years later, MSA ceased operations and paved the way for two new entities - Singapore Airlines (SIA) and Malaysian Airline System (MAS).

As SIA concentrated on its core business of running an airline, the establishment of SATS as a separate, yet wholly-owned subsidiary company evolved naturally. On 15 December 1972, SATS was formally corporatised with 1,673 staff. By the end of the first year, staff numbers rose to 2,000 while gross revenue increased by 25 per cent.

[edit] Steady Expansion

In 1977, SATS opened an airfreight terminal at Paya Lebar Airport capable of handling 160,000 tonnes of cargo a year.

Four years later, SATS made the move to Singapore's new Changi Airport after investing S$147 million in a new headquarters building, a new inflight catering centre, which at that time was the largest single-building inflight kitchen in the world, and two new airfreight terminals.

By the mid-1980s, SATS was able to handle about 20,000 passengers a day at Changi Airport, a 60 per cent increase over the 12,700 passengers handled daily at Paya Lebar Airport in 1980. Cargo also registered double-digit growth rates.

In 1985, SATS was restructured into four companies so that it could better manage demand for its services. Singapore Airport Terminal Services became the parent company and subsidiaries were formed out of the four operating divisions: Apron Services, Cargo Services, Passenger Services and Catering.

Four years later, SATS added two new airfreight terminals and invested in new passenger handling equipment for Changi Airport's Terminal 2. This increased its passenger handling capacity to more than 20 million passengers a year.

In 1992, three companies within SATS - Apron, Cargo and Passenger Services - were merged to form a new company, SATS Airport Services (SAS). This consolidation was designed to improve co-ordination and communication, and strengthen the SATS Group's competitiveness.

Over the next four years, an express courier centre, capable of handling 40,000 tonnes of cargo a year, was opened along with the S$215 million Airfreight Terminal 5, the S$172 million Inflight Catering Centre 2 and a S$40 million SATS Maintenance Centre.

Since the move to Changi in 1981, SATS has invested more than S$1 billion in state-of-the-art facilities. A second Express Courier Centre for partner DHL Worldwide Express, costing S$30 million, was completed in December 2001. On 2 January 2008, SATS sold the Express Courier Centre Two (ECC2) to DHL Express.

At the end of the 1999-2000 financial year, SATS owned and operated five airfreight terminals with a combined handling capacity of 1.3 million tonnes of cargo a year and two catering centres capable of producing 27 million meals a year.

In the first quarter of 2001, a sixth airfreight terminal costing S$270 million with a handling capacity of 800,000 tonnes of cargo per annum commenced operations.

2003 saw the launch of SATS' web-based system, CargoNet, to further complement its cargo tracking service. It also upgraded the materials handling system in Airfreight Terminals 1 to 4 to improve cargo handling effieciency and equipment serviceability.

In July 2005, SATS launched a range of new products and service upgrades.

Besides its operations in Singapore, SATS has also established a network in Asia through joint ventures in China (including Hong Kong & Macau), India, the Philippines, Indonesia, Taiwan, Vietnam and the Maldives.

[edit] Recognition

SATS has been described as the third most-admired company in Singapore, in a poll conducted by The Wall Street Journal Asia in September 2008. SATS was also ranked second for the quality of its services and for corporate reputation, and placed fourth for innovation.[citation needed]

[edit] Airport Services

SATS' Airport Services encompass Passenger Services, Ramp and Baggage Handling, Cargo Handling, Aviation Security, Aircraft Interior Cleaning and Cargo Delivery and Management.

[edit] SATS HK

SATS acquired 100% of Menzies Aviation (Hong Kong) Ltd (MAHK) for approximately HK$18 million (approximately S$3.3 million) on 11 November 2008. Following the acquisition, it was renamed as SATS HK Limited on 7 April 2009.

SATS HK is one of the four ground handling agents at the Hong Kong International Airport (HKIA). It is also one of the four licensed ramp handlers at HKIA. SATS HK provides passenger and ramp handling services including baggage handling, load control and flight operations to 11 airlines. Amongst its key customers are Federal Express, Cebu Pacific, Air Canada, Orient Thai and Asiana Airlines.

[edit] Asia-Pacific Star

In March 2009, SATS launched a low-cost ground handling services under a new wholly-owned subsidiary, Asia-Pacific Star. Together with the low-cost inflight catering unit, SATS has put in place an end-to-end integrated service platform for the gowing low cost segment of the airline market.

[edit] Affinity Membership

The “Affinity” Membership, by Singapore Airport Terminal Services Ltd (SATS), offers passenger preferential check-in services at their specially designated “Affinity” check-in counters and the use of SATS Premier Club lounges available in all terminals of Singapore Changi Airport as well as the lifestyle “Rainforest” lounge in Terminal 1, regardless of the class of travel.

[edit] Coolport @ Changi

On 18 August 2009, SATS announced its plans to launch Coolport @ Changi, Singapore’s first on-airport perishables handling centre, in early 2010. Costing approximately S$12 million to build, Coolport @ Changi will be the first dedicated on-airport facility in Singapore for handling terminal and transit perishables cargo within the Free Trade Zone. Located within SATS Airfreight Terminal 2, Coolport @ Changi will have an annual operating capacity of around 250,000 tonnes, with scope for expansion from the current 8,000 square metres to 14,000 square metres. Coolport @ Changi will be the first facility in Singapore comprising three multi-tiered zones with different temperatures ranging from -28C to 18C. It will be able to handle a range of perishables cargo such as live seafood and ornamental fish, fresh produce, meats, flowers and pharmaceutical products including vaccines.

A host of value-added services including Warehousing and Distribution, Live Tanking, Inventory Management & Control, and Ripening facilities provides a complete cold chain logistics solution. Coolport @ Changi will be designed in accordance with internationally recognised Hazard Analysis and Critical Control Points (HACCP) guidelines for food safety and in compliance with the highest international standards of cold chain integrity. It also aims to be the first Halal-certified air cargo hub for perishables in Asia Pacific.

[edit] Food

SATS' Food business comprises inflight catering, food logistics, industrial catering as well as chilled and frozen food manufacturing, and airline linen and laundry.

[edit] Country Foods

On 24 July 2008, SATS acquired all remaining shares from the minority shareholders of Country Foods Pte Ltd (Country Foods). On completion of the sale and purchase, Country Foods became a wholly-owned subsidiary of SATS.

Country Foods is in the business of manufacturing and supplying of chilled and frozen processed foods and ready-to-eat meals to fast food restaurants and café chains, convenience stores as well as other food establishments and institutions. Besides the Singapore operations, the Company also owns a 70 percent stake in a joint venture company in Macau called Country Foods Macau, Limited (Country Foods Macau), which supplies to casino, resort and restaurant operators.

[edit] References

[edit] External links