Minor catalyst for SATS (again)

Remember during October 2014 when this splashed the headline?

More than a thousand Jetstar passengers face delays, cancellations and luggage headache

I remember reading that article back then and realised the ground handler back then was ASIG, Jetstar's new ground handler. Being vested in SATS, I was secretly laughing at the airline for not using SATS (or rather, abandoning SATS for ASIG).

Shortly after, MOM got involved in this case for ASIG's alleged staff salary issue. Boy, things just ain't working out isn't it?

Now, you can probably guess where this is going....

According to UBS' report today, Jetstar is set to return to SATS for their ground handling services from 22 July 2015 onwards. 

Quote as follow:

Major implications for industry profitability
More importantly, this marks a return to the duopoly situation in the ground handling scene at Changi Airport, with SATS enjoying a c. 80% market share vs. 20% for dnata. We think such a structure will have positive implications for the broader industry profitability, especially for SATS, with less pricing pressure likely to benefit margins. Jetstar was the only contract that ASIG managed to secure, since it was awarded the third ground handling license in 2011. Swissport was the third ground handler at Changi from 2005 to 2009, and its staff count of 300 was similar to present day ASIG.
Nevertheless, Swissport exited the industry after four years citing "economic reasons", despite having four major airline customers. While ASIG's current plans remain unclear, we believe it likely that ASIG will similarly exit, given the significant difficulty for it to achieve relevant scale in Singapore, thus benefiting incumbent operators such as SATS.

Duopoly. I love monopoly/oligopoly or anything that suggests my investments are the leader of the pack.

Looks like this year is going to be a good year for SATS. Fingers cross and keep flying :)