GATEWAY services and in-flight catering solutions provider Sats has restructured its gateway services business to form two new business units, Singapore Hub and Gateway Services Asia-Pacific.
On Wednesday (Jul 10), the group said this move reflects its strategic decision to continue investing in Singapore, while scaling its international presence to capture growth opportunities overseas.
Each unit will target growth in “distinct and important market segments”, it added.
Singapore Hub will focus on driving aviation hub competitiveness in Singapore. Sats said that focusing on Singapore as a standalone market would strengthen the group’s ability to support current and future needs for Singapore’s air hub, which groups Changi Airport, Seletar Airport and the aviation industries at these gateways.
Sats president and chief executive officer, Kerry Mok, said this new unit represents the group’s “commitment to ensure the continued success of Singapore’s aviation sector and Changi Airport by providing Singapore’s airports with safe and efficient operations around the clock”.
The other new business unit, Gateway Services Asia-Pacific, will concentrate on growing Sats’ Asia-Pacific market share and manage the group’s operations in overseas airports, including its network of overseas stations through its subsidiaries, joint ventures and associates.
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Sats chief operating officer Henry Low will chief executive of Singapore Hub, and Bob Chi, currently chief executive of the gateway services division, will be re-designated chief executive of Gateway Services Asia-Pacific.
Both appointments take effect on Oct 1.
Mok said: “I am confident Bob has the experience, drive and network that will place Gateway Services Asia-Pacific on a strong footing to create long-term value for Sats through increased market share in the international arena.”
Shares of Sats were trading S$0.02 or 0.7 per cent higher at S$3.06 as at 3.55 pm on Wednesday, after the news.
DBS analyst Jason Sum said the restructuring of Sats’ gateway services business is “not considered material”, though he sees the move as consistent with the group’s strategy of expanding its geographical presence in cargo handling.
He said in an email to The Business Times: “Having two separate business units enables Sats to present itself as more locally focused and client-centric in both domestic and international arenas. This structure can significantly enhance its competitiveness and ability to secure commercial wins in these distinct markets.”
In his view, having separate units enables Singapore Hub to “focus entirely on maintaining and enhancing operations within Singapore, tailoring its services to meet local demands and regulatory requirements”.
“Meanwhile, Gateway Services Asia-Pacific will concentrate on understanding and meeting the diverse needs of international markets in the Asia-Pacific. This specialisation can lead to increased adaptability and more effective, customised solutions that are attractive to clients,” he added.
