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SATS gets a boost as Changi Airport slashes fees
It will get a 20% rebate.
Changi Airport’s decision to reduce charges for passengers, airlines and aviation services providers will give in-flight caterer SATS a boost.
According to Maybank Kim Eng, SATS will receive a 20% rebate on in-flight catering and ground handling fees from May 2015 to Mar 2017.
The group will also receive grants to support their productivity drive over the next two years.
“SATS incurs licencing fees of around SGD77m a year (around 4% of sales). Assuming a 20% reduction in total licencing fees, we expect EBIT uplift of 8%, ceteris paribus,” stated Maybank Kim Eng.
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