PIA, Swissport sign accord

[Abbas Ali]

KARACHI: Pakistan International Airlines (PIA) and Swissport International Limited have signed an agreement to improve the aviation services in Pakistan.

According to PIA press release issued here on Friday, Swissport will integrate various ground handling functions initially at eight airports and set up a cost efficient one stop shop facility to enhance ground handling service standards.

This will be done in the first phase and then a joint venture company will be created under Swissport’s management to take over the ramp services function at 16 other stations throughout the country.

Source: The News

On the Net: Swissport International Ltd.

[Abbas Ali]

October 13, 2006

Swissport International wins management contract to provide aviation services in Pakistan

Zurich/Karachi, October 13, 2006 – Swissport International, the world’s leading ground services specialist to the aviation sector, has concluded a collaboration agreement with Pakistan International Airlines under which Swissport will provide ground handling management services at various airports in Pakistan. Swissport secured the partnership against international competition, and plans to commence its new management duties at the beginning of 2007.

Pakistan International Airlines (PIA), which is Pakistan’s national carrier, has conducted an extensive evaluation of all the possible options for the provision of its ground handling services, including an invitation to tender with a view to possible outsourcing, in a process which began in early 2006. Swissport emerged from the tender process as PIA’s preferred option.

As a result, over the next few weeks, Swissport will be making all the preparations required together with PIA to establish a new skilled and cost-minded aviation services management organisation in Pakistan. The operation will initially extend to eight airports, but should be expanded to 14 more at a later date.

Swissport’s new collaboration with PIA extends not only to providing ground handling services for Pakistan’s national carrier; it will also include the handling of flights for all the other international airlines operating to and from the country. The total work volume covered by the new accord amounts to some 50 000 flights a year.

“This new agreement with PIA offers sizeable advantages for all the parties concerned,” says Willy Hallauer, Senior Vice President and project leader at Swissport International. “By wedding PIA’s local expertise to Swissport’s global ground handling experience, we will be able to substantially enhance the present quality standards. And that will be of tremendous benefit – not only to both partners, but also to all the airports involved and to all the international airlines which serve them.”

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 3.2 million tonnes of cargo a year on behalf of some 650 client companies. With its workforce of around 21 000 personnel, Swissport is active at 172 airports in 41 countries on five continents, and generated consolidated operating revenue of CHF 1 499 million (EUR 999 million or USD 1 315 million) in 2005. www.swissport.com / www.ferrovial.com

Source: Swissport International Limited

[PK777]

So what exaclty will they be doing ??

[Babushka99]

If you read it - it says: "Swissport will provide ground handling management services at various airports in Pakistan"

So essentially everything under ground handling as far as PIA is concerned.

[FMC]

So what exaclty will they be doing ??

In a nutshell they will be utilizing PIA's resources and receiving management fees for 60.000 flights per annum. Will PIA be buying new GSE for swissport is a question that needs an answer.