SATS and dnata Fight Contract Battles at Lower Rates Despite Operating Costs
Contract renewal battles at Changi Airport Singapore between ground handlers, Singapore Airport Terminal Services (SATS) and dnata, have forced low rates for future operations while operating costs remain high.
For example, according to Today Online, the turnaround cost of operating full-service to a Boeing 737 has gone down around $400 USD, and the charge for handling a Airbus 320 is down 30 percent compared to a few years ago.
"I am still struggling to understand the strategy of my competitor, which only seems to be about cutting prices, even as costs continue to escalate amid headwinds and the manpower shortage,” CEO of dnata Singapore Mark Edwards told Today Online.
In some cases at Changi Airport, airlines switch either fully or partially between the two providers. Some, like Etiahd Airways, transferred passenger check-in, baggage handling and aircraft ramp handling to dnata while they continued cargo handling and catering services with SATS.
AirAsia switched from dnata to SATS for ground operations, but several others, including China Southern Airlines, Turkish Airline and Air New Zealand switched to dnata from SATS for other services.
Dnata also contracted with Bhutan Airline and Myanmar National Airlines, which has only just resumed international services in Changi last year. But, SATS still holds 80 percent of the market share at the airport, according to Today Online, serving 93,000 more flights than dnata in Singapore.
