Sats forms new business unit in effort to expand Asia-Pacific presence
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(From left) Gateway Services CEO Bob Chi, Sats president and CEO Kerry Mok and Sats chief operating officer Henry Low at a media briefing on July 10.
ST PHOTO: CHONG JUN LIANG
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SINGAPORE – Ground handler and in-flight caterer Sats is starting a new business unit to widen its ground-handling footprint overseas, with a focus on the Asia-Pacific (Apac) region.
It is doing so by restructuring its largest division, Gateway Services, to form two new units, Gateway Services Asia-Pacific and the Singapore Hub, the company announced on July 10.
Its Gateway Services business provides ground-handling services, such as passenger and aircraft handling and baggage, security and cargo-handling services.
Sats said Gateway Services Asia-Pacific will grow the group’s market share in the region and manage its operations at foreign airports, including its network of overseas stations in Apac, via its subsidiaries, joint ventures and associates.
At present, it is in 44 locations across eight countries in Apac.
The Singapore Hub will beef up the group’s ability to support the current and future needs of Changi and Seletar airports, and the aviation industries at both airports, Sats said.
“The Gateway Services restructuring reflects the strategic decision by Sats to continue investing in Singapore, while scaling its international presence to capture growth opportunities overseas,” the company said.
Mr Bob Chi, chief executive officer of its Gateway Services business, will helm Gateway Services Asia-Pacific as CEO. Sats chief operating officer Henry Low will become CEO of its Singapore Hub.
Both appointments will take effect from Oct 1.
Sats president and CEO Kerry Mok said the restructuring of Gateway Services is “aligned with our overarching goal and ambition to accelerate Sats’ growth into a global multinational corporation”.
He said the growth of the air cargo business globally, driven by the rising volume of e-commerce in recent years, is an opportunity for the company to expand its global network.
Having this network would also be an advantage when shipping high-priority cargo.
At a press briefing on July 10, Mr Mok gave the example of an urgent shipment out of Brussels, Belgium, where Sats has a presence through its subsidiary.
The company could coordinate the loading of the aircraft and pass information to its counterparts in Singapore to ensure it would be accorded handling priority after the plane arrived here.
Mr Chi told reporters that India, where Sats has partnered with Air India in a joint venture called Aisats, is a key market it has its eye on.
He noted that Air India is expanding its fleet, and the potential for growth in the airline’s existing businesses is very good.
“There are also new airports that are being opened within India, and privatisation (of other airports) is also taking place. So that opens up opportunities for us,” he added.
Indonesia is another country with potential.
Mr Chi said its Indonesian joint venture PT Jas, which deals in ground handling, has a market share of nearly 70 per cent, and there remains tremendous potential for growth on account of the country’s large hinterland.
Mr Chi said the restructuring of Gateway Services came amid Changi Airport’s expansion as well, with Terminal 5 in the works.
Sats’ new Singapore Hub unit can now focus on transforming its labour force to get it ready for a digital, automated future, he added.
“That’s why we think that having a dedicated CEO (for the Singapore Hub) is important to see this project through and execute it well, without having the distraction of having to grow the Apac business (at the same time).”
Mr Low said it is a must to increase automation in Sats’ operations here, noting that as Changi Airport doubles in size, “we can’t just double the headcount”.
Previously known as Singapore Airport Terminal Services, Sats was established in 1972 as a subsidiary of national carrier Singapore Airlines. It was divested from its former parent company in September 2009.
Sats is restructuring its largest division, Gateway Services, to form two new units, Gateway Services Asia-Pacific and the Singapore Hub.
PHOTO: ST FILE
It started its overseas ventures as early as 1993 by forming joint ventures in China.
In 2023, Sats acquired global air cargo logistics company Worldwide Flight Services.
As a result of the deal, the group became the world’s largest air cargo handler, with 215 locations in 27 countries in North and South America, Europe, the Middle East, Africa and Asia.
Sats posted a record revenue of $5.1 billion
