SINGAPORE (April 30): Singapore Airlines (SIA) and SATS Ltd have agreed to renew a suite of aviation services contracts for the next five years as part of their bid to strengthen Singapore’s overall competitiveness as a hub.

For the next five years starting from April 1, SIA and SilkAir contracts will have a five-year tenure with the option to extend for another five years. It encompasses inflight catering and cabin handling, passenger and ramp handling, cargo handling, aircraft interior cleaning, aviation security and laundry services.

The new contract will also include the provision of aviation security services for Scoot.

At the same time, SATS has created dedicated teams for SIA with digital ground handling systems that are integrated with Singapore Changi Airport, thus insuring seamless service for passengers from ground to air.

Key touchpoints will be analysed by both SIA and SATS, who intend to use data analytics to uncover opportunities to improve their service and personalisation offerings, among others.

In a joint press statement on Tuesday, SIA and SATS say their latest agreement marks a long-term partnership that represents a “foundational development” in SIA’s three-year transformation plan to enhance its customer experience, as well as raise operational efficiencies to better position the group for the future.

See: Singapore Airlines to unveil first major overhaul since 2007

See: Singapore Airlines' 56 steps to cut costs, boost revenue leave shareholders unmoved

Both entities have also been working together on a joint sustainability roadmap to mitigate the impact on the environment and meet the demands of increasing air travel, they add, with more details to be announced as the relevant initiatives are rolled out.

“We are pleased to be extending our relationship with SATS through these renewed contracts and look forward to building on our strong relationship in the years ahead,” says Goh Choon Phong, CEO of SIA.

“The long-term relationship between SIA and SATS means that we can work seamlessly as one team to innovate and invest in world-class service and capabilities,” adds SATS president and CEO, Alex Hungate.

Shares in SIA and SATS closed at $9.68 and $5.23, respectively.