Wednesday, September 1, 2010

Final bids invited for third ground handling licence

26 July 2010

Changi Airport Group (CAG) announced that it has launched the second stage of a two-phase tender process for a third ground handling licence at Singapore Changi Airport. In this phase, four shortlisted companies, namely AirAsia Berhad, Aircraft Service International Group, Jetstar, and SIA Engineering Company, have been invited to submit their detailed bids including their business and financial plans for the provision of passenger handling, apron handling and cargo handling services.

Following expressions of interest in the licence from the four shortlisted companies, CAG held discussions with each of the companies to seek feedback on specifications for the tender. As a result of this consultation, CAG has revised the tenure of the licence from five to ten years. While the preference is for a licensee to offer the full suite of ground handling services, bidders have the option to propose offering a limited range. Only one licence will be awarded.

The tender closes on 17 September 2010. CAG will evaluate the business proposals of each bidder based on a set of defined evaluation criteria, such as the company’s track record, and how it plans to drive innovation and build its business and operations at Changi Airport. The successful bidder is expected to commence operations in the first quarter of 2011.

A third ground handler will provide the 89 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.

In the first five months months of 2010, Changi Airport handled 16.6 million passenger movements, 729,000 tonnes of cargo and more than 106,000 flights.


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