Menzies issues stark warning over future
The four companies that manage ground operations at UK airports, including Edinburgh-based John Menzies, have warned that they will struggle for survival as the coronavirus emergency intensifies.
Menzies, Swissport, WFS and Dnata may not be able to continue operating for more than a few weeks, with thousands of jobs under threat.
The firms provide the bulk of airport handling services across the UK, and warn that airports could have to close if they collapse.
In a joint letter to the Chancellor, they said: “We have all been able to weather previous crises, whether 9/11, Sars or the Icelandic volcanic eruption, but Covid-19 is different, as it is both global and longerterm.”
Swissport’s Justin Holt welcomed Chancellor Rishi Sunak’s job retention scheme, but said further measures would be needed, including a holiday from National Insurance payments and business rates.
Last week, Menzies, which operates in 34 countries, laid bare the impact of the coronavirus pandemic on its business after reducing its global headcount by more than 17,000.
The group said that since it had published its results on 10 March, the impact of the spread of the Covid-19 virus had increased significantly and extended across all of its international operations.
Airlines have suspended routes and grounded aircraft while some airports have shut down entirely. Menzies had already suspended its dividend amid the headwinds caused by the outbreak.