Swissport easily replaced to keep airports running, say aviation experts

Aviation figures say there are other groups that can keep airports running if Chinese-owned Swissport doesn’t get the $125m rescue it wants.

Swissport airport ground staff member Martin Bates working at Brisbane Airport. Picture: Jen Dainer

Airport ground operations company Swissport has been accused of misrepresenting its role in the aviation industry by suggesting airlines would be unable to operate if it was forced to significantly downscale its services.

The company, which is owned by Chinese conglomerate HNA Group, has demanded a $125m rescue package from the federal government, due to a dramatic loss in revenue as a result of the coronavirus crisis.

Swissport warned that without government assistance, it would have to axe 80 per cent of its workforce who perform ground operations for aircraft including security and baggage handling.

The company would also look to sell baggage-loading equipment and aircraft-towing trucks, stairs and container loaders.

Deputy Prime Minister Michael McCormack told The Australian he would seriously consider the request and urged Swissport to access the JobKeeper program to help maintain 2000 jobs.

But concerns have been raised within the aviation industry that Swissport was overstating its role in the sector, and others would step in if the company was unable to continue.

Aviation consultant Neil Hansford said Qantas Handling, dnata and Menzies could replace Swissport tomorrow.

“It’s not as if it’s even a duopoly. There are plenty of players,” Mr Hansford said.

Qantas and Jetstar are also understood to be unconcerned by the impact on their operations of a potential reduction in Swissport’s services.

Speaking to Alan Jones on radio 2GB on Thursday, Swissport executive vice president for the Asia Pacific, Glenn Rutherford denied he was under pressure from the company’s Chinese owners to lean on Australian taxpayers.

“I’ve never once spoken to a member or an employee of HNA, not once, and there’ve been no instructions whatsoever,” Mr Rutherford said.

“There are some concerns about HNA’s (financial) position but what I can say is that Swissport in Australia has been operating for almost 30-years and has been profitable in every year of its operation.”

He would not say if Swissport had approached HNA for financial assistance, as its revenue dried up.

“At this point, we’re not requiring any money. We have got a good balance sheet as it stands,” said Mr Rutherford.

“What I do have is a revenue crisis that will run out. In normal circumstance when a business loses all of its revenue it has two levers – find new revenue which is not available to us, or it reduces costs. I don’t want to take that course of action.”

The HNA group is also a major shareholder in Virgin Australia that went into administration on Tuesday with more than $5bn of debt. The company is believed to owe Swissport millions of dollars that may never be recovered.