Gate Aviation LPL & NCL

[ReadyToGo]

Rumour has it that GateGourmet has put its handling business at Liverpool and Newcastle on the market. Having failed to agree terms with Easyjet, they had originally planned to pull out of handling altogether, and EZY had expected to sign a new handling deal soon.

That hasnt happened, leaving Gate Aviation with a contract to fulfill and a parent company who doesnt want them. Any guesses as to who might buy?

[groundhand]

What is there to buy?

A loss making business with unworkable, for profit, contracts?

This is what happens when businesses buy their way into the market. Unsustainable business models can rarely be converted to sustainable.

Re NCL, I would argue that 3 handling companies is one too many for the current (and forseeable future) volumes and that Gate should be allowed to disappear from whence they came to lick their wounds. Strong management from Swissport and Servisair should then allow either company to secure (re-sign?) EZY and others at handling rates that give a sensible return; this should then allow for the much needed investment both companies need to make in their businesses.

I feel sorry for the staff who were TUPED over to Gate who now face an uncertain future.

It will be interesting to see the Airport's spin on this as, certainly at NCL, they were instrumental in bringing GATE onto the site, diluting the ability of all 3 companies to secure profitable contracts. Will they admit their error? Unlikely.

GH

[speedbird_481_papa]

When I Rang NCL the other day, I asked them about the Gate Aviation contract Tender and they think that Aviance may be stepping in to take the contract over, because (and I may be mistaken here) you are not allowed to be TUPEd back to your original employer.

So basically, It will still be Servisair they reckon but under the Aviance name.

Maybe someone fom either NCL or LPL can shed some light on this?

[trident3]

Aviance have pulled out of UK ground handling (last post 30SEP10 BMI LHR/T1)and Go-Ahead group no longer entertain this facility under their business portfolio.