SATS

[kazukirai]

Thank you Kuzukirai for sharing!
The tourism board give quite a good projection for tourist arrival in future (about 10% increase per annum). but from the figures, the passengers SATS handles only up by 3%. Is it due of competition from other low-cost handlers?

Do you think SATS can increase the price for ground handling services? because if the government allows a small price adjustment, then it may translate to a significant increase in profit for the company.

(vested)

Hi Thrift,

Great observation! It could very well be that they have lost market share due to the entrace of the 3rd ground-handling company. Can they raise the price? I don't know about that since I don't have inside industry knowledge but I would think not since they are now faced with extra competition.

My broad thesis before looking at the figures was the potential increase in air-travel in the years to come.

No doubt that will depend very much on how well the economy does but I think LCCs have changed the industry fundamentally and made it more affordable for people to travel and travel frequently which leads to an increase in the services that an airline requires.

Maybe you could share your reasons for buying into SATS?