Swissport Brussels Files for Bankruptcy
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Swissport Brussels Files for Bankruptcy
https://www.brusselstimes.com/all-ne...lights-resume/
The announcement of the bankruptcy of ground handling company Swissport Belgium has left Brussels Airport and Brussels Airlines with a tight deadline to find a solution to ensure flights will be able to resume as planned on 15 June.
Speaking Monday morning, Brussels Airlines announced that it will put in place a contingency plan to ensure flights resume on 15 June after Swissport Belgium – responsible for 60% of handling at Zaventem airport – announced that it had filed for bankruptcy for its ground handling and cleaning services.
For its part, Brussels Airport said on Monday that a “quick solution for Swissport was absolutely necessary”. The Zaventem Airport said it is in contact with the various stakeholders “to find very short-term solutions and guarantee the continuity of operations (carried out by the handler)”.
A Difficult Time
The announcement from Swissport Belgium follows a difficult period for the company after Brussels Airlines – its main customer – stopped flying on 21 March. Around 1,469 employees work at Swissport in Belgium, with no clarity on how the news will impact their jobs.
“We have assessed the situation from an operational and financial point of view and considered all scenarios in order to examine whether ensuring a sustainable future for ground handling and cleaning services was possible,” said Thierry Miremont, CEO of Swissport in Belgium.
Speaking Monday morning, Brussels Airlines announced that it will put in place a contingency plan to ensure flights resume on 15 June after Swissport Belgium – responsible for 60% of handling at Zaventem airport – announced that it had filed for bankruptcy for its ground handling and cleaning services.
For its part, Brussels Airport said on Monday that a “quick solution for Swissport was absolutely necessary”. The Zaventem Airport said it is in contact with the various stakeholders “to find very short-term solutions and guarantee the continuity of operations (carried out by the handler)”.
A Difficult Time
The announcement from Swissport Belgium follows a difficult period for the company after Brussels Airlines – its main customer – stopped flying on 21 March. Around 1,469 employees work at Swissport in Belgium, with no clarity on how the news will impact their jobs.
“We have assessed the situation from an operational and financial point of view and considered all scenarios in order to examine whether ensuring a sustainable future for ground handling and cleaning services was possible,” said Thierry Miremont, CEO of Swissport in Belgium.
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Whenever handling contracts are discussed, people bemoan that it’s a race to the bottom, the lowest common denominator, everything about minimum cost with almost no regard to quality (especially in the UK, home of the worst GSE).
Well, I’m afraid that if you win contracts by being the cheapest, you’re also the most likely to fail to return a profit, and therefore, to go bust, old-style. That’s simple, but for many profoundly unpalatable, economics.
Well, I’m afraid that if you win contracts by being the cheapest, you’re also the most likely to fail to return a profit, and therefore, to go bust, old-style. That’s simple, but for many profoundly unpalatable, economics.
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Absolutely correct, and when there is less competition left they charge more or the airlines have to directly employ people to do their own ground handling which also costs more.
Then someone sees an opportunity to undercut, enters the market and the cycle repeats.
Then someone sees an opportunity to undercut, enters the market and the cycle repeats.
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The cycle repeats - it has always been like this. There used to be times when handling agents ranked lowest in the airline hierachy. I never signed the contracts, but had to live with them as a station manager for several years. The main problem was the " small print ", the services were very basic, any extras were heavily charged for. The only advantage I had towards my fellow colleagues, who ran stations with their own, company, staff, was that I had no watchdogs, like works council or union. Which compensated for a lot. At times handling agent companies, undercutting each other, grew like weed, I am sure they will jump in this case.
