Turkish Airlines (THY) will sever ties with Vienna-based DO & CO, owned by Turkish businessman Atilla Doğudan, which provides catering to THY passengers. The Turkish flagship carrier will not work with TURKISH DO & CO, 50 percent of which it owns directly, at the new Istanbul airport. THY's new catering partner will be Singaporean catering company SATS.

THY announced the start of negotiations with food companies to provide catering services after bringing its operations to the Istanbul Third Airport, which is under construction. According to a THY statement disclosed through the Public Disclosure Platform (KAP), the former can jointly establish a company with SATS, the catering provider for Singapore Airlines.

The statement said: "Within the scope of the goodwill agreement, it may be possible to invest in the Singaporean company for the provision of catering services after the obtainment of legal, administrative and regulatory approval and the fulfilment of necessary preconditions. Significant developments will be shared with the public."

SATS Investments Pte. Ltd. (SIPL), a subsidiary of SATS Ltd., has announced that a goodwill agreement has been signed with THY.

Founded in Turkey in 2006, TURKISH DO & CO has been offering airline catering services at nine major airports in Turkey, including Istanbul's Atatürk International Airport, where it is headquartered, Istanbul's Sabiha Gökçen International Airport and airports in Ankara, Trabzon, Adana, Antalya, Dalaman, Bodrum and İzmir.

SATS was founded in 1972 in Singapore. Operating in 44 locations in the Far East and Middle East, the company offers ground services as well as airline catering. The company, which is closely interested in Istanbul's third airport project, has been planning to invest in Turkey for a long time. If an agreement is reached with SATS, the company is expected to invest $120 million in the new airport.