Changi tries again for a third ground handler

Changi Airport Group (CAG) is calling for tender for a third ground handling licence at Singapore Changi Airport. This follows expressions of interest received from several parties and changing industry dynamics in the last three to six months, the airport managementcompany said.

The tender covers the provision of passenger handling, apron handling and cargo handling services. These services are presently provided by two agents – Singapore Airport Terminal Services Limited (SATS) and SIA Engineering Company; and Changi International Airport Services (Private) Limited, a member of the Emirates group of companies.

CAG said a third ground handler will provide the 85 airlines currently operating at Changi Airport with more choice and a more competitive ground handling market with potential benefits in terms of service quality, range of offerings and price.

This is not the first time Changi has attempted to provide a third alternative to the two established players, an effort that failed last year by the defection of ground handling giant Swissport International who said that while Changi airport may be in some ways competitive, it was “not truly deregulated or liberalised”.

The licence will be for a period of five years and the successful bidder is expected to commence operations by mid-2010. In the first nine months of 2009, Changi Airport handled 26.7 million passengers, 1.18 million tonnes of cargo and 177,000 flights.