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SATS Ltd Inks New Partnership With Jetstar Asia: What it Means for Investors?

SATS Ltd (SGX: S58) announced on Tuesday that it will be tying up with Jetstar Asia so that passengers of the airline will have an enhanced airport and inflight customer experience. Some are renewal of current contracts while some are new launches. Below is a summary of the announcement:

1) Jetstar Asia has appointed SATS to supply catering and catering logistics on board all of its 18 aircraft. These aircraft clock more than 600 flights a week.

Starting from 1 August 2017, the new agreement will increase the meal options for passengers and offer seasonal menus on-board all Jetstar Asia flights. Passengers will also benefit from cross-promotional products between food and beverage and duty-free goods on board.

Furthermore, the airline has renewed the existing ground handling agreement with SATS for a period of three years.

2) Over at Terminal 1 of Changi Airport, Jetstar became the first permanent adopter of new self-service check-in kiosks. Passengers on all Jetstar airlines flying out of Singapore can self-check in at these kiosks located at Rows 8 and 9 of the terminal.

3) In addition, Jetstar Asia has introduced roving teams, armed with mobile devices to support customers who may need to purchase extra luggage or have their documents checked. This service known as Max Airport will also be expanded to include check-in, changing flight, purchasing extra leg room and on the spot support for flight disruptions. All these can be done without the need for check-in kiosks or counters due to the iPads the teams will be carrying.

The renewal of existing contracts and inking of new deals is a testament to the quality of service delivered by SATS, amid the keen competition in the ground handling and catering arena at Changi Airport.

Even though the new initiatives may not be contributing to the bottom line significantly, it’s a step in the right direction to enhance customer experience and free up of manpower to do more value-added work.

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Editor's note: The original version of this article incorrectly stated that Jetstar Asia has plans to launch a roving service in Terminal 4. The error has been corrected. The Motley Fool regrets the mistake.


The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of SATS Ltd.