2 HANDLING NEWS
Costa Rica exercise completed by Swissport International
Swissport has completed its majority acquisition of InterAirport Services in Costa Rica. The acquisition will help to expand Swissport’s Latin American network of passenger and ramp handling operations.
Costa Rica is an attractive and important market for Swissport within the Latin American region. InterAirport Services handled more than 10,000 flights in 2012 at the two major airports in San Jose and Liberia and is employing approximately 350 people. With the acquisition of the IAS business, Swissport is in the position to increase its network in Latin America as it provides Swissport with an entry into one of the key markets in the region and will position the ground handling company as the clear-cut market leader. Swissport has been partnering with IAS through a Trade Mark and Management Services Agreement since February 1 2010. Since then, Swissport and IAS jointly have successfully grown the customer portfolio by adding some of the most important players in the region and the industry. In addition, IAS has started operations in Costa Rica’s second airport of Liberia, and grown the business with several renowned airline customers. Per Utnegaard, Group President and CEO of Swissport International, commented on the deal. “We are very pleased to conclude the acquisition of IAS in Costa Rica, a country with much economic and political stability that offers tremendous potential to Swissport. This is an excellent addition that perfectly complements our existing activities in Latin America. The acquisition is part of our group growth strategy and does not only solidify our presence in the region, but enables us to further grow and expand in Latin America.”
Servisair: now and the future
In a recent conversation Abderaman El Aoufir, Servisair’s CEO, discoursed on the path that he has pursued with a view to turning the handling company around. The ground handler offers a wide portfolio to its customers, including ramp services, cargo, lounge facilities, refuelling, de-icing and bussing services. Key to the whole operation, though,says Abderaman, is the safety aspect. “Safety is our number one priority and whilst we accept there are challenges throughout the business, Servisair has a good incident reporting culture. From the customer’s point of view, a good safety culture and management
GROUND HANDLING INTERNATIONAL JUNE 2013
system is now taken as a given by the airlines and is no longer a differentiator between the major handling companies. “That said, contract decisions are now taken on price, led by procurement specialists rather than the airline local station manager or head office operational management. However, the customer remains at the centre of everything we do, particularly when it comes to safety.”
He mentions that labour remains an issue for the balance sheet. “The cost of labour is a challenge for the whole industry. Servisair tries to be competitive through improved utilisation and cross-utilisation of its workforce. There are benefits of having qualified and experienced employees and we have seen this in our Toronto central de-icing facility: there have been no ramp incidents there since 2005. The personnel there is loyal and staff turnover is nil.” Abderaman readily adds, though, that in the handling business, mentality and mindset varies from country to country when it comes to the subject of safety. Has the ongoing economic gloom had much effect on his operation? “The recession has helped to sharpen our focus on our cost base and the changes we have made had a positive effect on our business. I can say that Servisair’s financial performance is one of the best although we are still operating within a low margin industry.” And finally, what about outsourcing? Does he feel that this trend will gain momentum?
“In the near future I cannot foresee any significant changes in this business and I feel that airlines will continue to self-handle in their larger stations.”
Middle East update
According to National Aviation Service’s CEO, Hassan El Houry, the handling company has not only had a very successful past 12 months, it is now building on this very success. “There’s a lot happening,” he told Ground Handling International in an interview in April. “We’re expanding rapidly at our existing stations, which has been down to increased frequencies and new signings. Opportunities to grow abound: of particular interest is sub-Saharan Africa and Saudi Arabia in the light of GACA issuing requests for expressions of interest there.” (Readers may be aware that the trio of handlers in the area combined to form SGS; fresh thought on handling, though, has seen the aviation authority reconsider its stance. A shortlist could well be drawn up by the end of the year).
“The recession hasn’t affected our
region too much, either. We did see cargo levels dip initially but they have since recovered; and passenger levels are still growing. There have been temporary advantages, such as the US presence in Kuwait that was bringing in more cargo; and there have been gaps, too, such as when Kingfisher flights stopped. “Africa remains our next focus, though. It’s close to our head office and some of its main customers are Gulf carriers, which we serve. We will follow them to these new destinations. In terms of setting up handling there, we’ve found the joint venture to work best.” Hassan says that despite the loss of Kingfisher, India is working out well and NAS takes a 45% market share in Mumbai, for example. Legislation still proves to be the stumbling block within that continent, however. In Kuwait, meanwhile, he has seen huge growth; and as mentioned above, NAS is well- placed in terms of the coming tenders. NAS is also involved in the management of the impressive GA terminal, where it caters for around 90% of the traffic. Abu Dhabi is another success story: NAS won the concession to refurbish the VIP terminal, which is due for completion this summer. “It’s something that we’d like to replicate elsewhere,” remarks Hassan. “We’ve also been through ISAGO, with more certifications to come. It’s disappointing to note that the number of audits has not decreased after gaining the award; however, the benefit has been in the safety roadmap for the station in question. Both carriers and the aviation authorities seem to respect this award.
“Ultimately, because we’re not affiliated to a government or airport authority, we can act quickly: there’s no red tape involved. I think that this, and the size of our operation, means that we can progress.”
Porter acts on Twitter entries
Porter Airlines has filed a lawsuit against the union which has been representing a small number of striking fuel workers. The suit, filed at Ontario Superior Court in April, is seeking US$3m for general and special damages as well as US$1m for punitive damages.
In the filing Porter alleges that a union spokesperson made libellous comments about the carrier through social media and that other defamatory material was posted through the same facility. Porter added that the comments were a mixture of false statements and footage that has harmed the corporate
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