Swissport revises collaborations with local partners in India and the Philippines
Swissport International is revising its collaborations with local partners in India and the Philippines for strategic and operating reasons.
Zurich, October 9, 2008 – Swissport International, the leading global aviation services group, is revising its collaborations with local partners in India and the Philippines for strategic and operating reasons. Swissport is disposing of its activities in the Philippines and is parting company with its present cooperation partner in India to evaluate new collaborations. The changes, which come into effect this month, will have no impact on the Swissport Group’s financial performance.
Swissport’s Group Executive Management performs regular appraisals of the Group’s strategic options and priorities, to maintain an optimum focus in its continued business development. As part of these activities, Swissport recently reconsidered its minority shareholding in the Philippines.
In view of its basic policy of concentrating on majority-owned operations, Swissport has resolved to sell its 40% holding in current partner Citadel. Swissport will continue its collaboration with Citadel, however, under a franchising agreement. The parties agreed not to divulge any further details of the sale price involved.
Future market strategy for India reassessed
The various options available in India’s ground handling business are currently undergoing very dynamic development: the market is opening up, a number of official tender processes are under way and new forms of collaboration are emerging with the local airline sector. In view of these developments, Swissport is seeking to redefine its options and opportunities in the Indian market; and to do so, Swissport and Punj Lloyd have amicably decided not to pursue the ground handling opportunities in India and have mutually agreed to terminate the Joint Venture.
Swissport still interested in emerging markets
Despite the new arrangements in India and the Philippines, Swissport intends to further pursue its present growth, and continues to consider new collaboration opportunities all over the world and in all three business segments of ground handling, cargo and aviation specialty services. Various projects here are already well advanced, and should come to fruition by the end of the year.
Swissport International Ltd., which is owned by Ferrovial, a leading European infrastructure and service corporation based in Spain, provides ground services for over 70 million passengers and 3.5 million tonnes of cargo a year on behalf of some 650 client companies. With its workforce of around 30 000 personnel, Swissport is active at 180 airports in 41 countries on five continents, and generated consolidated operating revenue of CHF 1.9 billion (EUR 1.3 billion or USD 1.8 billion) last year.