The company says its AI investments will follow the same criteria as all capital allocation decisions.
[SINGAPORE] Sats, a provider of gateway services and food solutions, aims to build an integrated technology and data platform with artificial intelligence in all its operations. He pointed out that the impact of the Iran conflict will vary, but it can be managed thanks to diverse networks.
Satz answered shareholder questions ahead of its annual general meeting (AGM) and issued a stock exchange filing last Friday (July 10) after hours, detailing its use of AI, plans for cost-effective implementation, and the impact of the Iran conflict on its business.
“We are building an integrated technology and data platform across our business to drive improved planning, forecasting and execution at scale,” the company said.
Freight operations are using machine learning predictions to improve planning and resource coordination. We are also introducing system automation to automatically weigh and measure cargo size and weight to improve speed and data accuracy.
In ground handling (services provided to aircraft at the airport, such as catering, refueling, and baggage handling), the company is moving to task-based rather than flight-focused operating procedures.
The first features of this new system will be operational in the Singapore hub in the 2026 financial year starting from April 2026, and will be rolled out across the company’s network in stages.
The cost of AI and the outcome for Iran
Shareholders also asked how the company plans to use AI cost-effectively, as the price of AI continues to rise.
Satz said investments in AI will be treated like capital and operating expenditures and will be “subject to the same fiduciary rigor and governance standards that apply to all capital allocation decisions, along with business case evaluation and return on investment considerations.”
Priority will be given to AI applications that can address specific challenges across the business. The company evaluates the benefits in terms of cost, scalability, impact, and risk before committing. It uses a “pragmatic approach” that selects the most appropriate solution rather than the largest or most computationally intensive model.
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The company said the Middle East conflict and the closure of the Strait of Hormuz have had mixed but widely manageable impacts on its operations.
The strength of its network, with 225 locations in 27 countries, means Sat has visibility into freight flows that less diversified carriers cannot.
For example, the situation in Iran has disrupted operations at some hubs in the Middle East, while stations in Saudi Arabia and Oman have seen increased Sats activity. The latter reported an increase in volumes as cargo was transported overland through the port to the Persian Gulf. Asia-Pacific hubs such as Singapore, Hong Kong, Kuala Lumpur and Bangkok also captured rerouted flows.
The conflict has also increased energy prices, but this is “relatively manageable” as it represents a modest portion of costs, the company said. Fuel costs have a bigger impact on airlines than on cargo or ground handlers, the report said.
A further important consideration is whether high energy costs over time will impact overall aviation activity and demand for satellite services, it added.
The 53rd General Meeting of Shareholders will be held on Friday (July 17).
