Southern Airports Services Joint Stock Company (SASCO) is listed under code SAS on the Unlisted Public Company Market (UPCoM). SASCO operates in the airport services business and holds the largest market share in supplying products and services at Tan Son Nhat International Airport, Vietnam’s largest airport by number of passengers.
Currently, ACV holds 67 million shares of SASCO, equal to 51 per cent of the airport services provider’s chartered capital. ACV is planning to sell four million shares of SASCO between December 6, 2016 and January 4, 2017 with the aim of reducing its holding to 48 percent.
In the first nine months of 2016, SASCO earned 1.54 trillion VND in revenue, a yearly increase of 4 per cent, and 169 billion VND in profits, an increase of 12 per cent year-on-year and reaching 94 per cent of its annual target. The company’s main products and services include duty-free products, arts and crafts, local specialties and business lounges, as well as food and beverages, travel, transportation and advertising services.
Of these main business activities, selling duty-free products and renting business lounges generated the highest profits for SASCO, with total profit of 120 billion VND in 2015. SASCO said that it is improving the quality of all services, including restaurants and shops to attract more customers.
SASCO has the comparative advantage over competitors in the duty-free products sector as it is supported by strategic partner Imex Pan Pacific Group.The Imex Pan-Pacific Group which holds 80 per cent market share in domestic high-end fashion.has been working with the aviation sector for more than 30 years, and has 25 years of experience in investing in and supplying tax-free goods to several airports in Vietnam.
In 2015, Tan Son Nhat International Airport received more than 26 million passengers, slightly higher than the airport’s registered capacity of 25 million passengers per year. In the first nine months of this year, the southern international airport received some 24 million passengers, an increase of 24 per cent from the previous corresponding period. SASCO is managing almost all business lounges at Tan Son Nhat International Airport. The passenger volume using business lounges has been increasing by more than 15 per cent per year.
In the mid-term period, the expansion of Tan Son Nhat International Airport, which is expected to be completed in 2018, will increase the airport’s passenger capacity by 60 per cent to 40 million passengers per year. That will help SASCO improve its income and profits in the next three to five years.
Moreover, SASCO will also have an opportunity to expand its market when it becomes the largest service provider at Long Thanh International Airport, which is scheduled to become operational in 2025.Long Thanh International Airport designed to handle 25 million passengers and 1.2 million tons of cargo by 2025 in the first phase. In the second and third phases, the air port’s total capacity will be increased to 100 million passengers and five million tons of cargo a year.
SASCO was established in 1993 with an initial governmental capital of 9.3 billion VND (410,089 USD). After more than 20 years, from an enterprise established during the subsidy period, SASCO has made several impressive changes in accordance with market mechanisms to keep up with international trends in the field of airport commercial services.
