Hong Kong Airlines has opted for Asia Airfreight Terminal (AAT) to handle its cargo at Hong Kong International Airport (HKIA), while SATS HK will undertake its ramp handling at the carrier’s home hub.
In other news, SATS has sold a 51% stake in SATS HK and a 4% stake in AAT to Hong Kong Airlines.
Hong Kong Airlines has taken a further 31% stake in AAT through the purchase of shares from other shareholders.
Following the deals Hong Kong Airlines will have a 35% stake, SATS will have 45% and the remaining 20% will be owned by Eastern Option Limited.
SATS HK provides ramp and passenger handling services at HKIA, while AAT provides cargo handling services. SATS will now hold a 49% shareholding in SATS HK. SATS will remain the largest shareholder, with a 45% stake, in AAT.
Of the deals, Alex Hungate, SATS president and chief executive, remarked: “With the injection of their large base load at their Hong Kong hub, SATS HK and AAT will be able to improve the utilisation of their facilities and enjoy better operating leverage.
“The increased scale will improve service and connectivity for all our customers in Hong Kong. This initiative reflects our agility and ability to adapt and grow in a challenging operating environment,” he added.
The completion of the transactions is subject to the fulfilment of certain conditions, including the finalisation and execution of the ramp and cargo services agreements with Hong Kong Airlines.
SATS brands itself as Asia’s “leading provider of gateway services”.
These services encompass airfreight handling, passenger services, ramp handling, baggage handling, aviation security services, and aircraft interior and exterior cleaning.
It is also a major provider of ‘food solutions’, include airline catering, institutional and remote catering, aviation laundry, food distribution and logistics.
SATS is active at 47 airports, 53 cities and 14 countries across Asia and the Middle East.
