SINGAPORE (June 24): SATS announced that its 59.4%-owned subsidiary in Japan, TFK Corporation, has secured a multi-year inflight catering contract from Delta Air Lines, Inc. valued at JPY30 billion ($325 million).

TFK is expected to start catering services to Delta at both Narita and Haneda International Airports in Tokyo by October this year.

Delta currently operates 22 peak-day flights from Narita and Haneda.

The airline’s owned and operated inflight kitchen in Narita will close following the transition to TFK.

Said Alex Hungate, President and Chief Executive Officer of SATS: “We are delighted to welcome Delta back to TFK. This new agreement re-establishes our longstanding relationship of 22 years which had ended in 2009 following Delta’s merger with Northwest Airlines.”

TFK now serves more than 40 airlines including Japan Airlines, Singapore Airlines, Qantas, Lufthansa, Air France and major Chinese carriers.

The contract is not expected to have any material impact on SATS’ net tangible assets per share and consolidated earnings per share for the current financial year.

SATS closed 1 cent higher at $3.50 yesterday.