Sats to build unified AI-enabled platform; says Iran effects mixed but manageable
It notes that its AI investments are subject to the same standards as all capital allocation decisions
[SINGAPORE] Provider of gateway services and food solutions Sats aims to build a unified technology and data platform with artificial intelligence for all its operations. It noted that the effects from the Iran conflict have been mixed but manageable, thanks to its diversified network.
Answering shareholder queries ahead of its annual general meeting (AGM), Sats issued a bourse filing last Friday (Jul 10) after hours, expanding on plans to use AI and adopt it cost-effectively as well as effects from the Iran conflict on the business.
“We are building a unified technology and data platform across our operations to drive planning, forecasting and execution improvements at scale,” it said.
For its cargo operations, it is using forecasting through machine learning to improve planning and resource coordination. It is also introducing automation in systems that automatically weigh and measure cargo size and weight to improve speed and data accuracy.
In ground handling – the services provided to aircraft at an airport such as catering, refuelling and baggage handling – the company is shifting towards a task-based operating procedure, rather than one focused on flights.
The first capabilities of this new system started operating at its Singapore hub in FY2026, which began April 2026, and it will be introduced to the company’s network in phases.
AI costs, Iran outcomes
Shareholders also asked how the company intends to utilise AI in a cost-effective way, observing that AI is becoming increasingly expensive.
Sats said that investments in AI are treated the same as any capital or operating expenditures, and “subject to the same fiduciary rigour and governance standards we apply across all capital allocation decisions alongside business case evaluation and return-on-investment considerations”.
Priority is given to AI applications that can address specific challenges across its business. The company assesses benefits on costs, scalability, impact and risks before committing. It uses a “pragmatic approach” that selects the most appropriate solution rather than the largest or most computationally-intensive models.
The conflict in the Middle East and the closure of the Strait of Hormuz has had a mixed but broadly manageable impact on the company’s business, it said.
The strength of its network – with 225 locations across 27 countries – means that Sats can capture cargo flows that less diversified operators cannot.
For example, the Iran situation disrupted flights at some Middle East hubs, but Sats had more activity at its stations in Saudi Arabia and Oman. The latter reported a rise in volumes as cargo was shipped through its ports and overland into the Persian Gulf. Asia-Pacific hubs including Singapore, Hong Kong, Kuala Lumpur and Bangkok also captured rerouted flows.
The conflict has also increased energy prices, but these have been “relatively manageable” said the company, as that represents a modest portion of costs. Fuel costs affects airlines more than cargo and ground handlers, it noted.
The more important consideration is whether prolonged, high energy costs affect overall aviation activity and demand for Sats’ services, it added.
Sats’ 53rd AGM will take place on Friday (Jul 17).
