Airports warn of 20,000 job losses as Swissport downsizes
Swissport’s staff do all of the things you probably don’t notice as you pass through an airport.
From loading, offloading, refuelling and de-icing aircraft to handling check-in at the terminal.
The company has been warning for months that jobs were at risk.
On Wednesday morning, in a memo to staff, Swissport’s Chief Executive, Jason Holt, said up to 4,556 of Swissport’s 8,500 UK employees will be laid off.
"There is no escaping the fact that the industry is now smaller than it was, and will remain so for some time to come," Holt explained.
"We must adapt by reducing the size of the workforce If we are going to survive as a company."
The timing of this announcement is significant.
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Swissport has furloughed 6,000 of its staff, but from August the government is asking employers to contribute to the cost of its Job Retention Scheme.
By starting the redundancy process now, Swissport can minimise the national insurance and pension payments it makes for furloughed workers.
Regional airports will be horrified by the scale of the cuts.
ITV News understands that Swissport is proposing to withdraw from Southampton and Aberdeen and "is reviewing the viability" of its operations at Bristol, Liverpool, Glasgow, Jersey and Gatwick.
The Airport Operators Association (AOA), which represents 50 airports, said up to 20,000 jobs are at risk in the UK because of persistently lower passenger numbers.
Swissport is paid according to the number of aircraft it services.
Before the coronavirus crisis, the company was supporting 5,000 flights a week - today it services are less than 500.
Airlines are slowly restarting flights and government support will be rolled back in the months ahead.
But the recovery in activity isn’t strong enough to prevent significant job losses.