In Southeast Asia, airlines like VietJet, Thai Airways, and Garuda Indonesia posted double-digit revenue growth last year. But the most impressive performance came not from a carrier, but rather a company that keeps its feet on the ground.
Much of SATS’s revenue growth comes after its completed acquisition of Worldwide Flight Services (WFS), a global air cargo logistics provider. SATS bought the company for 1.3 billion euros ($1.5 billion at current exchange rates) in a deal announced in early 2023.
SATS’s acquisition of WFS now makes the Asia-centric company much more of an international player. WFS is the world’s largest cargo handling firm, and is a major player in both Europe and the Americas.
A combined SATS-WFS has a reach of more than 215 locations worldwide, covering trade routes responsible for more than half of global air cargo volume.
SATS’s history stems back to the early days of commercial aviation in Singapore, starting as the ground division for Malayan Airways. That airline later split into Singapore Airlines (SIA) and Malaysian Airline Systems. SIA then established its ground handling business as a separate business in 1972.
Now, SATS is the main air cargo, ground handling, and in-flight catering services provider for Singapore’s largest civilian international airport, Changi Airport. SATS has since expanded its footprint throughout Asia, forming joint ventures in markets like mainland China, Taiwan, Hong Kong, the Philippines, and Indonesia.
“Our cargo volumes have consistently outperformed IATA’s global growth benchmarks, demonstrating our ability to leverage our expanded network to secure new contracts,” SATS said in its annual report.
