In an attempt to increase revenue,servisair at stn are contemplating an arrangement whereby they handle the easyjet domestic flights on behalf of swissport.Can anyone shine any light on the subject?
That's a dangerous relationship ... it can work as a short term solution but longer term leaves the sub-contractor vulnerable.
The contract holder is in the driving seat, collects the revenue and then passes on the sub-contract fees.
It's often used by a main contractor when they they have a short term resource problem or where they are only active in one part of the ground handling arena ... e.g Ringway Handling at MAN.
However, the deal falls apart in any party decides they can leverage a greater share of the revenue than the other.
It can also allow a competitor time to become more effective and control their cost base while growing their business.
As I say .. it can work and does have it's place ... but any partners entering into such a deal should do so with their eyes wide open and a clear exit strategy.