Photo Credit: SATS
Today 31st Oct 2017, AirAsia group and SATS Ltd formalised the partnership to provide ground handling services to the ASEAN region.
SATS, Asia’s leading provider of Gateway Services and Food Solutions, and AirAsia, Asia’s leading low-cost carrier,entererd into partnership where by SATS will acquire a 50% interest in Ground Team Red Holdings Sdn Bhd (GTRH) in exchange for SATS’ 80% stake in SGSS and aggregate cash consideration of SGD119.3 million (approximately MYR 372.2 million).. reported in SATS press release.
The press release read, Under the terms of the partnership, .
“GTRH will be renamed SATS Ground Team Red Holdings Sdn Bhd, which will be the 50:50 joint investment vehicle of AirAsia and SATS that will hold stakes in both its Malaysia and Singapore subsidiaries, Ground Team Red Sdn Bhd (GTR) and SGSS respectively. AirAsia will effectively own 51% of GTR and 40% of SGSS while SATS will effectively own 49% of GTR and 60% of SGSS. Both companies will also be responsible for growing the ground handling business in their respective markets and will explore expansion into Indonesia, the Philippines and Thailand in the near future.”
Tony Fernandes, AirAsia Group Chief Executive Officer said, “Today, we are very pleased to announce that two home-grown companies have partnered together to form a new Asean joint venture. We believe this joint venture will allow AirAsia to unlock significant value and grow it as we have done with AirAsia Expedia, our aviation academy Asian Aviation Centre of Excellence and later this year, our leasing arm Asia Aviation Capital. Our assets are very valuable and slowly people are beginning to see the true value of AirAsia, as today’s announcement proves.”