SATS Ltd. has announced that Hong Kong Airlines – the second base carrier at HKIA – is to engage SATS HK and Asia Airfreight Terminal (AAT) to handle ramp and cargo services respectively. SATS is also divesting a 51 per cent stake in SATS HK to the airline’s wholly-owned subsidiary Voltaire Capital Investment Limited (VCIL) through a sale and share purchase agreement worth HKD 76.5 million (USD 9.4 million).
With this sale, SATS will now hold a 49 per cent shareholding in SATS HK. SATS will also be selling 4.0 per cent of newly issued shares of AAT to Holistic Capital Investment Limited (HCIL) – another wholly owned subsidiary of the airline – at a sale consideration of HKD$100 million.
In addition, other shareholders of AAT have also entered into similar sale and share purchase agreements to sell a total of 31 per cent of their shareholding in AAT. Upon completion of the agreements, SATS will remain the largest shareholder with a 45 per cent stake in AAT while HCIL will become the second largest shareholder with 35 per cent shareholding. The third shareholder Eastern Option Limited will continue to hold its existing 20 per cent stake in AAT.
“We welcome this partnership with Hong Kong Airlines. With the injection of their large base load at their Hong Kong hub, SATS HK and AAT will be able to improve the utilisation of their facilities and enjoy better operating leverage. The increased scale will improve service and connectivity for all our customers in Hong Kong. This initiative reflects our agility and ability to adapt and grow in a challenging operating environment,” said Alex Hungate, president and CEO, SATS.
Hong Kong Airlines’ growing network currently covers over 30 cities regionally, with a combined fleet of 34 aircraft. The current passenger fleet has 29 aircraft, which includes nine A330-300s, nine A330-200s and eleven A320s, alongside five A330-200 Freighters.