On November 17 Changi Airport Group (CAG) announced that it was calling a tender for a third ground handling licence at Singapore Changi Airport. This followed expressions of interest received from several parties and changing industry dynamics in the last three to six months.
The tender covers the provision of passenger handling, apron handling and cargo handling services. These services are presently provided by two agents – Singapore Airport Terminal Services Limited (SATS) and SIA Engineering Company; and Changi International Airport Services (Private) Limited.
A third ground handler will provide the 85 airlines currently operating at Changi Airport with more choice and a more competitive ground handling market with potential benefits in terms of service quality, range of offerings and price.
Mr Lee Seow Hiang, CEO of Changi Airport Group, said: “Over the last few months, CAG has received expressions of interest from a number of parties regarding a third ground handling licence at Changi Airport. This has been prompted by two main factors – the divestment of SATS by Singapore Airlines and improving business conditions in the aviation market. There was especially keen interest from those who have experience of servicing low-cost carriers.”
“Changi Airport Group is always keen to provide our airline customers with more choice of suppliers. This tender is consistent with that approach. We are keen to support the entry of a new ground handler at Changi with the right mix of experience, innovative solutions and financial resources. This will enhance Changi Airport’s competitiveness.”
The tender will be conducted in two phases with the formal expressions of interest phase closing on December 16, 2009. In Phase Two, shortlisted bidders will be required to submit detailed bids including their business and financial plan. The licence will be for a period of five years and the successful bidder is expected to commence operations by mid-2010.
CAG says it will evaluate the business proposals of each bidder based on a set of defined evaluation criteria, such as the company’s track record and how it plans to drive innovation and build its business and operations at Changi Airport.
In the first nine months of 2009, Changi Airport handled 26.7 million passengers, 1.18 million tonnes of cargo and 177,000 flights.