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SINGAPORE: March 31, 2016. Singapore Airport Terminal Services (SATS) has signed a joint venture with Oman Air for exclusive cargo handling at Muscat International Airport.

Cargo Oman Air 2As part of the deal, Oman Air will transfer its cargo handling business to its Oman Air Cargo subsidiary and SATS will invest US$16.5 million for 33 percent of the renamed company Oman SATS Cargo (OSC).

Launching in the second quarter of 2016, OSC will become the sole provider of cargo handling services first at the existing cargo facility and then at the new state-of-the-art cargo terminal in Muscat International Airport.

Oman Air CEO Paul Gregorowitsch said: “The joint venture with SATS is one of our initiatives intended to prepare for the growth in airline operations in the coming years as well as secure a quality improvement in the services provided to our cargo customers.” He noted the growth of the new company will also provide increased employment and career opportunities for Omani citizens.

SATS will provide management and technical IP including staff training as well as a review of existing cargo processes and operations work flow at the new cargo terminal in Muscat.

Alex Hungate, SATS president and CEO added: “This strategic partnership [will] strengthen Oman’s position as a transit hub. We also see opportunities to develop cold-chain handling capabilities and promote carriage of premium and temperature-controlled airfreight for Oman Air and other airlines.”

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