Changi takes final bids for third ground handling licence

SINGAPORE's Changi Airport Group (CAG) has launched the second stage of a two-phase tender process for a third ground handling licence from four short-listed companies, namely AirAsia Berhad, Aircraft Service International Group, Jetstar and SIA Engineering Company.

These four bidders need to submit detailed proposals including their business and financial plans for the provision of passenger handling, apron handling and cargo handling services.

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 10 years. While the preference is for a licensee to offer the full suite of ground handling services, bidders can offer a more limited range.

The tender closes on September 17, 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 of the year, Changi Airport handled 16.6 million passenger movements, 729,000 tonnes of cargo and more than 106,000 flights. Presently, Changi serves 89 airlines flying to some 200 cities in about 60 countries and territories worldwide.

Operating expenses rose by $317 million compared to 2009 owing to higher fuel expenses and a $90 million profit-sharing payment to employees.
(Source:www.schednet.com)