SATS turns to lengthier Chinese outbound flights for robust growth

Longer trips equate to hungrier passengers.

The airline gateway services provider is set to utilise its catering savvy and pounce on the ballooning opportunity of growing outbound traffic from China.

According to analysts from UOB Kay Hian, the time is ripe for SATS for further expansion into China via its existing partners at select secondary hubs.

“SATS already has an established presence in Beijing and Tianjin, offering both gateway services as well as food solutions, via its partners China Eastern Airlines (CEA) and China Southern Airlines (CSA),” UOB Kay Hian said.

Meanwhile, the fact that more meals are served on international flights than on domestic flights makes the investment a no-brainer.

“Further investment into flight catering makes commercial sense. The urgency is best underscored by Hainan Airlines’ recent purchase of European in-flight and gateway services provider, Swissport,” UOB Kay Hian added.