Michael Shields at Reuters reports that Swissport Belgium SA/NV, a loss-making unit of Swissport International AG which provides ground services at Brussels airport, will file for bankruptcy after attempts to turn around the business failed.
Swissport said in a statement its Belgian cleaning business will also file for bankruptcy, but the group’s separate cargo business in Brussels and Liege is unaffected, Reuters relates.
“Beyond the chronic challenges in Brussels, the current market crisis is forcing Swissport International AG . . . to adopt a stricter practice regarding the funding of any loss-making subsidiaries, as to safeguard the group’s financial health,” Reuters quotes Swissport as saying.
The company said global revenue collapsed by 80% due to the coronavirus pandemic and it is only gradually starting to recover, Reuters notes. It was “expecting a drawn-out market recovery, with reduced demand for air travel well into 2021, according to Reuters. There is little room for subsidizing local entities, which project losses even after global demand recovers”.
Swissport, as cited by Reuters, said the group was looking to raise additional liquidity to compensate for the revenue impact of travel bans imposed by governments around the world.
Swissport, owned by China’s HNA Group, is the world’s largest provider of airport ground services and air cargo handling with operations at 300 airports in 47 countries.