SATS Top Aircargo Handler in the world. The world’s largest global aviation cargo handler will be created when Singapore-based ground handling and catering company SATS Ltd. acquires Paris-based Worldwide Flight Services (WFS)for US$1.14 billion in cash.
According to a statement released by the corporation, the combined entity’s network includes trade routes that account for more than 50% of all air freight traffic worldwide. Source: Reuters
SATS Aircargo Handler
SATS was founded in Singapore, with its roots dating all the way back to the first commercial aircraft that departed from Singapore Kallang Airport in 1947.
They expanded concurrently during the following few decades as Singapore developed into a major hub for commerce and travel.
After moving to Changi Airport in 1981, they increased their network to be more competitive and improved their operational capabilities alongside business partners like Singapore Airlines.
They have expanded into other non-aviation industry categories, like institutional food and cruise terminal management, as part of their corporate diversification strategy.
Their network has expanded to China, 40 international and domestic customers in India, 6 operational facilities in Japan, and 18 locations in Malaysia.
SATS in the Middle East
King Fahd International Airport (KFIA) in Dammam is equipped with a cold chain facility and has a yearly capability of handling 150,000 tonnes of goods. The King Khalid International Airport (KKIA) in Riyadh’s SATS Cargo Terminal, which can accommodate 300,000 tonnes of cargo yearly, comes next.
Oman SATS LLC is the top cargo handler at Oman’s Muscat International Airport, providing services to 30 of the top airlines in the world, including Oman Air, SWISS, British Airways, KLM, Emirates, Etihad, and Qatar Airways. The terminal’s 32,000 square meters are completely furnished with the newest equipment and facilities to handle a variety of cargo, including dangerous items, perishables, live animals, and pharmaceutical products.
SATS into Catering and Gateway Services
Apart from SATS becoming the Top Aircargo Handler in the World, it provides many other related services. Find below a list of other services offered by SATS.
SATS Top Aircargo Handler in the World with the Acquisition of Worldwide Flight Services (WFS)
Singapore-based ground handling and catering provider SATS Ltd is acquiring Paris-based Worldwide Flight Services for US$1.14 billion in cash, creating the world’s largest global air cargo handler.
The acquisition will enable SATS to better serve air cargo customers in strategic hubs such as Asia, Europe, and the United States, as well as complementary emerging markets such as Latin America and Africa. The integrated network spans trade lanes that represent more than 50% of the world’s air freight traffic. WFS operates at 5 of the top 10 cargo airports in North America and EMEA, including Los Angeles, Chicago, Miami, Frankfurt, and Paris. SATS is already in use at four of Asia’s top ten cargo airports, including Hong Kong, Taipei, Singapore, and Beijing.
In association with this exchange, SATS has appointed BofA Securities as the lead money-related advisor, DBS Bank Ltd. as a monetary advisor, Latham & Watkins LLP as lead counsel, and Allen & Gledhill LLP as Singapore counsel, with PwC Admonitory Administrations Pte. Ltd. giving transaction advisory support.
SATS Share price Drops after the Deal
Following news of the company’s agreement to purchase the largest air cargo handler in the world for $1.64 billion, shares of Sats fell precipitously to a two-year low after the stock started trading again on Thursday morning.
The company’s shares, which is listed on the main board, fell as soon as trading started on Thursday. They were down 80 cents, or 20.7%, to $3.07. The Covid-19 epidemic in September 2020 was the last time the counter dropped below this point.
The company recently disclosed that the transaction will be partially financed by a $1.7 billion stock fund-raising, with the remaining funds coming from internal cash resources. This information prompted the sell-down. To obtain the majority of the money, the company will conduct a rights offering of 609 million new shares at $2.79 each.
Despite the current unfavorable sentiment, many market insiders appear optimistic about the company’s longer-term prospects and assert that investors will ultimately judge the deal’s merits and its impact on the bottom line. Source: Straitstimes
Air Cargo Handling – an Insight
Air freight is a fast and efficient means of transporting goods. Airlines transport more than 52 million tons of goods annually, accounting for more than 35% of world trade by value, but less than 1% of world trade by volume.
This equates to $6.8 trillion worth of commodities annually or $18.6 billion worth of commodities per day. However, the industry impact of COVID-19 has had a dramatic impact on the air transportation industry, including air freight.
Available freight ton-kilometers across the industry fell by 21.4% year-on-year in 2020. By the end of the year, however, industry-wide freight tonne-kilometers had largely returned to pre-COVID levels. With so much air freight moving around the world, and with so many different actors involved in the supply chain, it’s important to consider air freight handling.
Cargo handling is the supply chain segment that processes goods on the landside of a cargo facility. From delivery at the airport of origin, loading onto the aircraft, unloading at the destination, and handing over to the consignee/carrier, there are many steps in the handling of cargo, in order to deliver the cargo safely and reliably.
Air Cargo Marktet Statistics
The latest Air Cargo Market Statistics released by IATA
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