The four major airport ground operations companies have
warned they are on the brink of collapse due to the coronavirus crisis, warning
their demise could spell the end for UK airports.
Swissport, WFS, Dnata and Menzies, which provide 90 per cent
of airport handling services in the UK, have written to chancellor Rishi Sunak asking for
urgent financial support, saying they may not be able to continue operating for
more than a few weeks.
Many airlines have severely reduced passenger flights, but
the four companies manage nearly all ground handling operations, including refuelling,
cleaning, baggage transfer, departure gate services and the loading and
unloading of cargo.
They are contracted by airlines rather than airports, but they
say that if they collapse, many airports would not be able to stay open and “the
airport infrastructure in the UK would grind to a halt for up to four months”.
According to the letter, the companies are starting to see a
decline in freight transport operations as well as passenger services, leading
them to estimate they have lost 95 per cent of their revenues over the past few
weeks.
If they collapse, they say it would put 25,000 UK jobs at risk.
Edinburgh-based Menzies has already cut more than 17,500
jobs worldwide to reduce costs.
The letter went on to say: “We have all been able to weather
previous crises, whether 9/11, Sars, or the Icelandic volcanic eruption, but Covid-19
is different, as it is both global and longer-term.”
Justin Holt, who heads up Swissport’s Western Europe operations,
said: “The aviation system is a triangle of airlines, airports and ground
handling businesses. Without cargo and ground handling companies, international
supply chains will stop functioning during the Covid-19 pandemic and recovery.”
Henk van Klaveren, a spokesman for the Airport Operators
Association, echoed Holt’s concerns, adding: “It is a very serious issue,
particularly for smaller airports where there is only one ground handling
operator.
“These airports still need to operate, even with fewer
flights. There’s essential cargo, flights to isolated regions and so on.”
While all four companies are eligible for the government’s
job retention scheme to ensure furloughed employees are paid up to 80 per cent
of their wages, Holt said the process is too slow and doesn’t go far enough. He
is calling for a holiday on National Insurance payments and business rates to
help companies reduce costs.