Business leaders from the four main cargo and ground handling companies, namely Swissport, dnata, WFS and Menzies, have warned of the imminent collapse of their sector, bringing airports across the country to a halt and severely impacting the UK’s supply chain during the COVID-19 pandemic.
The ground handling industry is a critical part of the UK aviation system, providing 90% of cargo and passenger handling at all UK airports and essential services like the handling and security processing of cargo and aircraft fuelling. Without these services, aviation as a whole cannot function, and supply chains will collapse.
Currently, as more than 95% of flights are not operating, ground handling companies are not being paid. While the industry has welcomed the Chancellor’s work retention package, low margins and staff comprising 70% of overheads mean that the viability of the industry remains immediately unsustainable.
The ground handling industry will be working with HMRC to access funds committed by Government but are calling for further support. The sector desires the relaxation of the eligibility requirements for either the Business Interruption Loans Facility or corporate finance loans offered by the Government; a holiday from PAYE and National Insurance for both employees and employers, together with business rates relating to the significant number of premises they utilise. Finally, as it wishes to respect social distancing and the furloughing of the handling teams, the sector is calling for a practical six-month extension to the Civil Aviation Authority’s regulations requiring all staff to receive retraining every two years.
