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Is SATS overpaying for AirAsia partnership?

In print this week

Is SATS overpaying for AirAsia partnership?

Michelle Teo Published on Fri, Nov 03, 2017 / 12:54 PM GMT+8

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SINGAPORE (Nov 3): Airport services provider SATS has teamed up with budget carrier group AirAsia to offer ground services at the new Terminal 4 at Changi Airport.

At the same time, SATS will take a minority stake in AirAsia’s ground handling operations in Malaysia. This gives SATS access to AirAsia’s ground handling operations at 15 airports in Malaysia, particularly key ones in Kuala Lumpur, Penang, Kota Kinabalu and Kuching.

The divestment of the Malaysian ground handling operations to SATS is expected to net AirAsia a one-off gain of RM365.7 million ($117.6 million).

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