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Baggage handling job loss fears

31.01.08

Talks were ongoing this week between two baggage handling firms at Durham Tees Valley Airport to reach a deal to secure the future of 43 staff. The news comes in the same week that it was announced 327 baggage handlers would lose their jobs at Manchester Airport.

Keith Nicholls, commercial director for Aviance UK, said bmi’s withdrawal of services from the airport last year and slow growth since then means that, in his view, Durham Tees valley can no longer sustain two handling companies. (Servisair also operate at the airport, and are the other party to the talks).

Aviance handles baggage for FlyGlobespan, British Midland and Eastern at Durham Tees Valley. It began operating at the airport - one of 17 UK airports where it has a presence - in 2001 after it acquired British Midland’s handling business. Mr Nicholls said: 'They were operating larger aircraft at higher frequency to Heathrow and that underpinned the business.'

'bmi pulled out last year and that was really the catalyst [for the talks]. We have not been able to secure new contracts to grow the business. I suspect there is only enough work for one handling company. Our projections for 2008 showed that we will make considerable losses.'

He said the industry was increasingly competitive, and noted Serviceair’s recent withdrawal from Glasgow, London city and Aberdeen airports, and that: 'Rationalisation is going on in the UK baggage handling market. It’s very competitive. People are paying less to fly and airlines are cost cutting.'

Mr Nicholls said the company’s priority was to secure a transfer for staff, adding: 'Talks are ongoing with Serviceair, and we are optimistic that we will secure a transfer of business.' The talks should be concluded on Friday and he hopes to make an announcement to employees on Monday.

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