a letter has gone out to Servisair employees outlining the dire economic situation the company finds itself in, blaming the volcano
Really? Scary stuff.
It's not entirely the volcano that's to blame. Basically Servisair have ferociously undercut other GHAs (in JER it is rumoured they undercut another GHA by £50k/yr to retain the BE contract) to get contracts and the airlines got used to it. Now the airlines aren't doing so good they're not keen to pay more for handling. Perhaps its Servisair's past policies coming back to bite them in the ass, and the volcano may be the tipping point?
However I really don't see them going under, its more likely a way to get the staff to do less overtime etc.
Its difficult to know what they would do if they did go under. Would staff be TUPED across at short notice to another GHA, and basically operate 'as is' for a bit?