Menzies / SAS Ground Handling Buyout?
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Joined: Apr 2005
Posts: 569
Likes: 0
From: Stockholm Sweden
Menzies have just purchased Northport. This was a Finnair owned ground handling company that used to be called Finnhandling. It carries out the ground handling for Finnair and British Airways (among others) in Stockholm and Oslo. Perhaps this is why you thought SAS?
They have ambitions in Scandinavia. So although it hasn't happened yet, I would not rule it out for the future!
They have ambitions in Scandinavia. So although it hasn't happened yet, I would not rule it out for the future!
Joined: Jul 2001
Posts: 90
Likes: 0
From: London
COPENHAGEN, Nov 27 (Reuters) - Scandinavian airline SAS (SAS.ST: Quote, Profile , Research) is considering selling all or parts of its ground services unit SGS to Britain's John Menzies (MNZS.L: Quote, Profile , Research), Danish business daily Borsen reported on Tuesday.
The final decision will be made at a SAS board meeting in three weeks' time, Borsen reported, citing sources.
SAS was not immediately available to comment on the report.
Earlier this month, Finnish national airline Finnair (FIA1S.HE: Quote, Profile , Research) agreed to sell its ground handling subsidiaries in Sweden and Norway to John Menzies, which provides aviation services through its subsidiary Menzies Aviation.
The final decision will be made at a SAS board meeting in three weeks' time, Borsen reported, citing sources.
SAS was not immediately available to comment on the report.
Earlier this month, Finnish national airline Finnair (FIA1S.HE: Quote, Profile , Research) agreed to sell its ground handling subsidiaries in Sweden and Norway to John Menzies, which provides aviation services through its subsidiary Menzies Aviation.
Joined: Jul 2001
Posts: 90
Likes: 0
From: London
[B]SAS postpones decision on SGS, STS and Spirit
The Board of SAS AB, following a recommendation from Group management, has decided to postpone processing the future structure of SAS Ground Services (SGS), SAS Technical Services (STS) and Spirit (terminal management within SAS Cargo).
These structural issues were on the agenda for today's Board meeting, but it was decided to carry them to the next Board meeting on February 5th to leave more time to analyze the different alternatives.
- There exists disagreement between the management and the trade unions, especially regarding SGS, on the future structure. Although we have worked together on this continuously for four months and elucidated the issues from many sides, the control group has not succeeded in determining a joint recommendation.
- These are important issues that affect many employees in functions that are significant in enabling us to maintain our promise to customers. Accordingly, Group management found it best that the Board delay its decision to allow more time for analysis," says Mats Jansson, President and CEO of SAS.
- The Board finds it wise to follow the recommendation of Group management to take some more time to analyze various structural alternatives for SGS, STS and Spirit before the Board addresses the matters," says Egil Myklebust, Chairman of SAS AB.
Background
The future structure of SGS, STS and Spirit is part of SAS's strategy 2011 (S11). This strategy has established that SAS shall reduce its complexity and concentrate on its core business, which is passenger traffic in Northern Europe. As part of this work, the future role and structure of SGS, STS and Spirit is being studied.
The work of investigating the future organizational structure of the three subsidiaries has been organized in control groups with a broad-based composition, in which all trade unions are represented. The control groups have worked continuously since the summer of 2007.
The Board of SAS AB, following a recommendation from Group management, has decided to postpone processing the future structure of SAS Ground Services (SGS), SAS Technical Services (STS) and Spirit (terminal management within SAS Cargo).
These structural issues were on the agenda for today's Board meeting, but it was decided to carry them to the next Board meeting on February 5th to leave more time to analyze the different alternatives.
- There exists disagreement between the management and the trade unions, especially regarding SGS, on the future structure. Although we have worked together on this continuously for four months and elucidated the issues from many sides, the control group has not succeeded in determining a joint recommendation.
- These are important issues that affect many employees in functions that are significant in enabling us to maintain our promise to customers. Accordingly, Group management found it best that the Board delay its decision to allow more time for analysis," says Mats Jansson, President and CEO of SAS.
- The Board finds it wise to follow the recommendation of Group management to take some more time to analyze various structural alternatives for SGS, STS and Spirit before the Board addresses the matters," says Egil Myklebust, Chairman of SAS AB.
Background
The future structure of SGS, STS and Spirit is part of SAS's strategy 2011 (S11). This strategy has established that SAS shall reduce its complexity and concentrate on its core business, which is passenger traffic in Northern Europe. As part of this work, the future role and structure of SGS, STS and Spirit is being studied.
The work of investigating the future organizational structure of the three subsidiaries has been organized in control groups with a broad-based composition, in which all trade unions are represented. The control groups have worked continuously since the summer of 2007.
Joined: Feb 2004
Posts: 605
Likes: 9
From: Edinburgh
http://www.boarding.no/art.asp?id=30203
So SAS have decided to hold onto SGS for atleast the next 18 months it would seem.
So SAS have decided to hold onto SGS for atleast the next 18 months it would seem.
Joined: Feb 2003
Posts: 8
Likes: 0
From: Abu Dhabi
Doubt there will be much left tbh, certainly in SGS international as an unwillingness to invest is going to result in the closure of many stations that rely on 3rd party airlines for the business, the first on the chopping block MAN out on it's ear despite winning multiple awards from customer airlines. Near enough closing 8th April 
Hull city, You wouldnt be saying that if it was you being made redundant.
Joined: Apr 2005
Posts: 84
Likes: 0
From: The Deep South
What is the latest situation, someone who works at lhr said they heard a rumour that SGS are thinking of shedding some contracts there ? and scaling down their operation !
Surely this cannot be true, the ramp operation is only just over a year old ?
I thought they were one of the better handling agents !
Surely this cannot be true, the ramp operation is only just over a year old ?
I thought they were one of the better handling agents !
Joined: Dec 2007
Posts: 7
Likes: 0
From: Manchester
SGS are making cut backs and savings and that includes terminating contracts that are not fiancially viable. It makes commercial sense, although to us staff it doesnt seem like it.
Unfortunatly that also means redundancy and tupe options come into effect for SGS staff, not only in LHR but also MAN.
Unfortunatly that also means redundancy and tupe options come into effect for SGS staff, not only in LHR but also MAN.
Joined: Mar 2008
Posts: 3
Likes: 0
From: London, UK
SGS reorganization at LHR
SGS have actually given notice to CA,OZ,MH and EY as considered not financially on line with their requirements of the S-11. Being OZ and CA Star Alliance airlines, it means that even if S-11 states that Star carriers will be the ones where we have to focus on, priority is given to the adjustment of the financial situation first.
Having SGS just OZ in T1, future Star terminal (to be rebranded Terminal East), it now means that SGS is leaving the future Star terminal.
Having SGS just OZ in T1, future Star terminal (to be rebranded Terminal East), it now means that SGS is leaving the future Star terminal.
Joined: Apr 2005
Posts: 84
Likes: 0
From: The Deep South
SGS reorganization at LHR
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SGS have actually given notice to CA,OZ,MH and EY as considered not financially on line with their requirements of the S-11. Being OZ and CA Star Alliance airlines, it means that even if S-11 states that Star carriers will be the ones where we have to focus on, priority is given to the adjustment of the financial situation first.
Having SGS just OZ in T1, future Star terminal (to be rebranded Terminal East), it now means that SGS is leaving the future Star terminal.
So what does that mean for staff employed in these areas ? What is the timescale ?
TUPE ? and who is likely to take on the contracts ?
Also pardon my ignorance but what is S-11 ?
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SGS have actually given notice to CA,OZ,MH and EY as considered not financially on line with their requirements of the S-11. Being OZ and CA Star Alliance airlines, it means that even if S-11 states that Star carriers will be the ones where we have to focus on, priority is given to the adjustment of the financial situation first.
Having SGS just OZ in T1, future Star terminal (to be rebranded Terminal East), it now means that SGS is leaving the future Star terminal.
So what does that mean for staff employed in these areas ? What is the timescale ?
TUPE ? and who is likely to take on the contracts ?
Also pardon my ignorance but what is S-11 ?