SIA and Sats renew 5-year partnership

A SATS Technology Autonomous Guided Vehicle with the container trailer at Changi Airport, on May 14, 2018.
A SATS Technology Autonomous Guided Vehicle with the container trailer at Changi Airport, on May 14, 2018. PHOTO: ST FILE

Singapore Airlines (SIA) has renewed its ground handling contract with Sats for another five years.

The partnership, which took effect from April 1, includes an option to extend for a further five years.

Before this, the maximum tenure with an extension was five years, meaning three plus two.

The new contract includes in-flight catering, passenger and cargo handling, aircraft interior cleaning, aviation security and laundry services.

It also includes the provision of aviation security services for SIA's budget arm, Scoot.

In a joint announcement yesterday, SIA and Sats said the long-term partnership is a key part of SIA's three-year transformation plan to enhance customer experience and raise operational efficiency to better position the SIA Group for the future.

In 2017, SIA announced a three-year turnaround plan to review company-wide work processes and operations, as the airline faces fierce competition that has eroded profits.

The new contract includes in-flight catering, passenger and cargo handling, aircraft interior cleaning, aviation security and laundry services.

The transformation - the biggest internal overhaul SIA has ever embarked on - would encompass initiatives to grow revenue, enhance organisational and operational effectiveness, and improve customer service.

As part of the renewed SIA-Sats contract, the ground handler has created dedicated teams for SIA with digital ground handling systems to ensure seamless service for passengers at Changi Airport, from ground to air.

Both companies will analyse key touchpoints during the customer journey, using data analytics to find opportunities to improve service.

These include personalisation in food and beverage offerings, for example.

In addition, SIA and Sats are working together on a joint sustainability road map to mitigate environmental impact and meet the demands of increasing air travel.

Details will be announced as initiatives are rolled out.

Said SIA's chief executive Goh Choon Phong: "We are pleased to be extending our relationship with Sats through these renewed contracts and look forward to building on our strong relationship in the years ahead."

Sats' president and chief executive Alex Hungate said: "The long-term relationship between SIA and Sats means that we can work seamlessly as one team to innovate and invest in world-class service and capabilities."

A version of this article appeared in the print edition of The Straits Times on May 01, 2019, with the headline 'SIA and Sats renew 5-year partnership'. Print Edition | Subscribe