Singapore Airport Terminal Services (S58.SG) +0.7% at $2.81, hardly fazed by prospect of increased competition as Singapore launches second stage of two-phase tender to award third ground-handling licence for Changi Airport, says Dow Jones.

Changi Airport Group has shortlisted four companies — AirAsia (5099.KU), Aircraft Service International (ARI.XX), Jetstar, SIA Engineering (S59.SG) — to submit detailed bids. Tender closes Sep 17, with winner expected to start operation under 10-year licence in 1H11.

“SATS looks well positioned to defend its market share and margins from the threat of a new entrant,” says Deutsche Bank, which has Buy call with $3.20 target, “We believe it would be difficult for a new entrant to operate, given the customer stickiness (contracts last at least three years) and lack of economies of scale.”

Immediate resistance at current July high of $2.85 set last week.