The Group delivered a resilient set of financial results for the year ended 31 March 2019 amidst
a challenging operating climate. Group revenue grew $103.4 million or 6% to $1,828 million.
Staff productivity, measured by value added per employment cost, decreased 2.5% from 1.59 times
to 1.55 times, mainly due to expansion in staff strength and manpower costs.
SIA and SATS have inked a five-year commitment to strengthen hub competitiveness with the
renewal of a suite of aviation services contracts. We have created dedicated teams for SIA
with digital ground handling systems that are integrated with Singapore Changi Airport,
ensuring seamless service for passengers from ground to air. Key customer journey
touchpoints are analysed using data analytics to find opportunities to improve service and
personalisation in F&B offerings. Both companies are also working on a joint sustainability
roadmap to mitigate the impact on the environment and meet the demands of increasing air travel.
SATS unveiled a new S$25 million kitchen with food technologies that can preserve nutritional
qualities and optimise taste while extending shelf life. Highlights included an automated
rice line that produces about 4,000 rice portions an hour, auto-fryers that cook approximately
120 kg of rice or noodles in an hour, a thermoforming packing line, and the first commercially
available pasteurisation and sterilisation technology in Asia. We launched the FreshTech line
to reduce waste by extending the shelf life of freshly-cooked meals with no deterioration in taste or nutrition.
Our joint venture with CAS Group saw us supporting three major events in 2018 – the 18th Asian Games,
3rd Asian Para Games, and IMF-World Bank meetings, as Indonesia’s leading ground handler. JAS Airport
Services was the Games’ official partner, where we provided handling services for international
delegations arriving in Jakarta and Palembang from August to October 2018. Our teams dedicated
special care and invested in low-floor apron buses to facilitate passenger handling for those
with reduced mobility to ensure their comfort. The IMF-World Bank meetings also gave us the
opportunity to showcase our expertise on a global platform, through our handling of VVIP
flights for delegations from 189 member countries.
Our subsidiary, GTR, extended its network connectivity with two new stations in
Ipoh and Kuantan for AirAsia. GTR also unveiled Malaysia’s first digital airport
control centre in Kuala Lumpur International Airport (KLIA2), enabling real-time
tracking of aircraft handling through a digital dashboard, and commenced its
own cargo operations in November 2018. By 2019, GTR Cargo was managing
AirAsia’s narrow body cargo operations and carved a share of Malaysia’s
domestic general cargo.
SATS has entered into two new joint ventures at Beijing Daxing International Airport,
which is slated to open in late 2019. Our investment in both JVs amounts to about 136 million yuan,
with the first focusing on providing ground and cargo handling, and the second offering inflight
catering. This strategic move expands our footprint within the Jing-Jin-Ji region,
complementing our existing operations at Capital International Airport, where we carry out
ground handling services and inflight catering through Beijing Aviation Ground Services Co.
Ltd and Beijing Airport Inflight Kitchen Limited respectively.
SATS bought out the remaining 40% interest in Kunshan FoodCo to increase our shareholding to
100% and renamed it SATS (Kunshan) Food Co., Ltd. Our central kitchen in Kunshan has a
production capacity of 70,000 meals a day and serves customers such as Yum! Foods and Hai Di Lao.
Through strategic expansion in China, we are building and enhancing our kitchens in Beijing,
Kunshan, Shenyang, and Tianjin to better serve our customers in the Jing-Jin-Ji and Yangtze River Delta regions.
SATS’ associate companies in Taiwan, Evergreen Air Cargo Services and Evergreen Sky Catering Corporation,
are performing well. Our air cargo associate is experiencing growth in cargo tonnage, while our inflight
catering associate is doubling its meal production capacity with a new in-flight kitchen at Taiwan
Taoyuan International Airport to better serve our customers in the region.
SATS partnered Hong Kong Airlines to provide ramp, passenger, and cargo handling services, enhancing
our scale of operations and offering hub operation services for Hong Kong International Airport.
With the injection of the airline’s large base load at the Hong Kong hub, our subsidiary SATS
HK Limited, and associate Asia Airfreight Terminal Company Limited, are able to improve the
utilisation of their facilities to derive better operating leverage to enhance connectivity
for our customers in Hong Kong.
AISATS Coolport is India’s first integrated on-airport perishable cargo handling centre located
at Kempegowda International Airport. The 11,000 sqm facility is built to meet the extensive
handling requirements of high-value perishable cargo products such as pharmaceuticals,
with an annual capacity of 40,000 tonnes and end-to-end cold chain solutions.
It received the Integrated Cold Chain Management Award from the Indian Chamber
of Commerce (ICC) at the 9th Annual Supply Chain & Logistics Summit & Excellence
Awards in 2019, and aims to achieve HACCP and IATA CEIV certification in the near future.
It was an exciting year for our joint venture company, TajSATS Air Catering Limited, who bagged several
awards and launched a new brand identity. On the international front, TajSATS Delhi won the distinguished
QSAI 2018 Worldwide Platinum Award for Excellence in Catering Quality and Gold Award for Excellence in
Catering Quality (Asia) at the 11th Annual QSAI Excellence Awards in Dallas, Texas. Back home, TajSATS
launched a new visual identity, signalling the company’s ongoing evolution and pursuit of innovation
across its aviation and non-aviation businesses.
SATS won a cargo handling concession contract at Chhatrapati Shivaji International Airport, through a
joint bid with our partner, Cargo Service Centre India Private Limited (CSC). The 18-year concession
began operations in April 2018 and was immediately accretive. Our joint venture extends SATS’ network
connectivity in India and grants us access to its economic nerve centre.
As the number of flights handled and meal volumes continue to rise in both Haneda and Narita International
Airports, SATS’ subsidiary in Japan is building a new in-flight kitchen with double the capacity, to gear
up for the 2020 Tokyo Olympics. We also continue to harness our culinary expertise and process know-how
across our network to produce high-quality meals more efficiently to meet increasing demand.
why is this important to us?
Our people’s commitment to service excellence and our sustainable business strategy culminates
in one shared purpose to feed and connect Asia. These pillars underline our efforts to make this
purpose a reality.
Harnessing our culinary innovation and technical expertise to provide better, more nutritious
food from sustainable sources to improve the health and well-being of our communities and ecosystems.
Ensuring seamless connections for passengers and cargo every day, while empowering communities and our people
to fulfil their fullest potential, we embrace technology, digitalisation and change.
Enhancing our operational efficiencies and reducing our carbon footprint and waste while shifting
to renewable and sustainable sources of energy, water and raw materials to lessen the
impact our business has on the environment.