Saigon Ground Services Joint Stock Company (SAGS - stock code: SGN) has just sent an official dispatch to the State Securities Commission and the Ho Chi Minh City Stock Exchange, announcing information about an unusual event that has greatly affected the company's production and business activities.
Accordingly, from April 20, 2025, SAGS will officially terminate the contract to provide ground services at Tan Son Nhat International Airport for Vietjet Air.
"The reason for ending the cooperation is that Vietjet will perform ground services at this airport itself ," the announcement from SAGS stated.
Faced with this situation, SAGS said it will rebuild its production and business plan for the entire year, while focusing on solutions to find new customers, develop complementary services, and reduce operating costs to compensate for revenue.
This is the second time in less than two years that SAGS has terminated its cooperation with a major airline. Previously, on January 1, 2024, SAGS stopped providing ground services to Bamboo Airways due to the airline's overdue debt and slow payment progress. Bamboo then switched to cooperating with Pacific Airlines to continue ground services.
According to the 2024 financial report, Saigon Ground Services Joint Stock Company (SAGS) recorded net revenue of VND 1,518 billion, up 4% over the previous year. Profit after tax reached VND 294 billion, up 22% over 2023.
On the other hand, SAGS is also implementing a long-term investment expansion strategy. Recently, the company proposed establishing a new legal entity to implement the Ground Technical Commercial Services Investment Project No. 2 at Long Thanh International Airport, with a total expected investment capital of up to VND790 billion.
The project will be implemented under a joint venture model between SAGS and Hanoi Ground Services Joint Stock Company (HGS), in which SAGS plays the leading role, contributing 75% of the capital from equity.
Gia Hong
Source: https://baophapluat.vn/vietjet-air-tu-thuc-hien-dich-vu-mat-dat-tai-san-bay-trong-thoi-gian-toi-post546256.html
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