SATS counters tight labour market with aggressive automation drive

Total expenditure 3.2% in FY15.

SATS will roll out an aggressive automation drive to drive growth and rein in costs in the tight labour market.

A report by OCBC Investment Research noted that SATS will pour cash to improve automation in both its Food Solutions (FS) and Gateway Services (GS) businesses.

"The key idea is to increase operating leverage such that workforce can be managed with higher business volume. For the FS segment, we believe revenue will continue be muted until air traffic volume picks up again," the report stated.

SATS reported that its total expenditure fell 3.2% to $1.58bn in FY15, on back of better cost management and a smaller headcount.

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