Changi Seeks Ground Handler

Changi Airport Group is seeking a ground handler to help serve the 85 airlines operating at Singapore Changi Airport.

The airport managing company received expressions of interest from several parties after Singapore Airlines divested one of the current licensees.

CAG called a tender covering the provision of passenger handling, apron handling and cargo handling services, which are presently provided by Changi International Airport Services Limited and two agents: Singapore Airport Terminal Services Limited and SIA Engineering Company.

Changi was a monopoly for ground handling until about five years ago. Changi Airport Group was formed on July 1 of this year as a result of the incorporation of Singapore Changi Airport.

“Over the last few months, CAG has received expressions of interest from a number of parties regarding a third ground handling license at Changi Airport,” said Lee Seow Hiang, CEO of Changi Airport Group. “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 servicing low-cost carriers.”

The tender will be conducted in two phases with the formal expressions of interest phase closing on 16 December 2009. In phase two, shortlisted bidders will be required to submit detailed bids including their business and financial plan. The license will be for a period of five years and the successful bidder is expected to commence operations by mid-2010.

Contact Thomas L. Gallagher at tgallagher@joc.com.