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SATS' Japanese subsidiary bags 30b yen inflight catering contract from Delta
SATS' Japanese subsidiary TFK Corporation has secured a multi-year inflight catering contract worth about 30 billion yen (S$325 million) from Delta Air Lines.
TFK is expected to commence catering services to the US carrier at Tokyo's Narita and Haneda international airports by October this year. The US airline's inflight kitchen at Narita will close following the transition to TFK.
"We are delighted to welcome Delta back to TFK. This new agreement re-establishes our longstanding relationship of 22 years which had ended in 2009 following Delta's merger with Northwest Airlines," said Alex Hungate, president and CEO of SATS, which has a 59.4 per cent stake in TFK.
The contract is not expected to have any material impact on SATS' net tangible assets per share and consolidated earnings per share for the current financial year.