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[h=1]JETSTAR FACED FLIGHTS DELAYS AND CANCELLATIONS AFTER SATS TOOK ASIG'S WORKERS[/h]
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2 Nov 2014 - 10:40am
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Airport ground handler SATS made a last minute bid for its competitor’s workers, causing ASIG’s business to come to a standstill last week.
On October 16, the Aircraft Service International Group (ASIG) was forced into an embarrassing situation when it did not have enough staff to do the baggage transfer for airline Jetstar.
ASIG began its operations 1947 and is one of the largest independent aviation services companies in the world. It operates in 80 cities throughout North America, Europe, Asia, and Central America.
ASIG has earlier bagged a contract with Jetstar to do its ground handling service but when ASIG’s workers did not turn up for work, this resulted in thousands of Jetstar customers having to cancel their flights or face delays.
Apparently, the Singapore Airport Terminal Services Limited (SATS) had swooped in to take ASIG’s workers away by giving them better work benefits.
It is unknown what benefits SATS was able to convince the workers to take, or why the workers did not inform their original employer ASIG about the new arrangement.
None of the three companies wanted to comment on the incident.
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However, it is understood that SATS is controlled by Temasek Holdings, which is one of only two of the Singapore government’s investment firms.
With the government’s backing, SATS has taken control of over 80 percent of the ground handling business at Changi Airport.
It has thus been difficult for any other ground handling company to topple, or even challenge SATS’s dominance, which possibly explains why when in 2009 when Changi Airport wanted to open the ground handling to a third company, this was met with lukewarm interest.
The other ground handler is dnata, previously known as the Changi International Airport Services (CIAS) and which was also controlled by Temasek Holdings.
Previously, Swiss company Swissport operated for four years before closing shop in 2009. It suffered losses of more than $50 million.
Finally, when new ground handler ASIG managed to convince an airline to be come under its fold, it was faced with unexpected troubles, caused by its major competitor.
It is understood that due ASIG’s sudden competitor-induced stress, Jetstar was left with no choice but to turn to SATS, which was previously managing its ground handling, to aid in the “transition”.
It is unsure when ASIG will be able to pick up but in the face of the near-monopoly of SATS and the presence of a stronger backer, such recovery might only be short-lived, if even so.
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2 Nov 2014 - 10:40am
<ins id="aswift_0_expand" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: inline-table; visibility: visible; position: relative; background-color: transparent; border-image: none;"><ins id="aswift_0_anchor" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: block; visibility: visible; position: relative; background-color: transparent; border-image: none;"><iframe name="aswift_0" width="336" height="280" id="aswift_0" frameBorder="0" marginWidth="0" marginHeight="0" scrolling="no" vspace="0" hspace="0" allowfullscreen="true" style="left: 0px; top: 0px; position: absolute;" allowTransparency="true"></iframe></ins></ins>
Airport ground handler SATS made a last minute bid for its competitor’s workers, causing ASIG’s business to come to a standstill last week.
On October 16, the Aircraft Service International Group (ASIG) was forced into an embarrassing situation when it did not have enough staff to do the baggage transfer for airline Jetstar.
ASIG began its operations 1947 and is one of the largest independent aviation services companies in the world. It operates in 80 cities throughout North America, Europe, Asia, and Central America.
ASIG has earlier bagged a contract with Jetstar to do its ground handling service but when ASIG’s workers did not turn up for work, this resulted in thousands of Jetstar customers having to cancel their flights or face delays.
Apparently, the Singapore Airport Terminal Services Limited (SATS) had swooped in to take ASIG’s workers away by giving them better work benefits.
It is unknown what benefits SATS was able to convince the workers to take, or why the workers did not inform their original employer ASIG about the new arrangement.
None of the three companies wanted to comment on the incident.
<ins id="aswift_1_expand" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: inline-table; visibility: visible; position: relative; background-color: transparent; border-image: none;"><ins id="aswift_1_anchor" style="margin: 0px; padding: 0px; border: currentColor; width: 336px; height: 280px; display: block; visibility: visible; position: relative; background-color: transparent; border-image: none;"><iframe name="aswift_1" width="336" height="280" id="aswift_1" frameBorder="0" marginWidth="0" marginHeight="0" scrolling="no" vspace="0" hspace="0" allowfullscreen="true" style="left: 0px; top: 0px; position: absolute;" allowTransparency="true"></iframe></ins></ins>
However, it is understood that SATS is controlled by Temasek Holdings, which is one of only two of the Singapore government’s investment firms.
With the government’s backing, SATS has taken control of over 80 percent of the ground handling business at Changi Airport.
It has thus been difficult for any other ground handling company to topple, or even challenge SATS’s dominance, which possibly explains why when in 2009 when Changi Airport wanted to open the ground handling to a third company, this was met with lukewarm interest.
The other ground handler is dnata, previously known as the Changi International Airport Services (CIAS) and which was also controlled by Temasek Holdings.
Previously, Swiss company Swissport operated for four years before closing shop in 2009. It suffered losses of more than $50 million.
Finally, when new ground handler ASIG managed to convince an airline to be come under its fold, it was faced with unexpected troubles, caused by its major competitor.
It is understood that due ASIG’s sudden competitor-induced stress, Jetstar was left with no choice but to turn to SATS, which was previously managing its ground handling, to aid in the “transition”.
It is unsure when ASIG will be able to pick up but in the face of the near-monopoly of SATS and the presence of a stronger backer, such recovery might only be short-lived, if even so.
