Qantas and Jetstar wins are “significant” for aviation services firm Menzies

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SCOTTISH airport services business Menzies Aviation has announced new contract wins in Australia.

The Edinburgh-based company, which provides passenger, ramp and cargo services at more than 200 airports in 34 countries, has signed deals with Qantas Airways, Australia’s largest airline, and Jetstar Airways, its low-cost airline subsidiary.

The ground services contracts will involve handling more than 40,000 Qantas flights a year at Perth, Brisbane, Cairns and Darwin and servicing Jetstar’s Melbourne hub.

“This contract win combined with the broadening of our relationship with Jetstar will see Menzies Aviation significantly increasing its footprint in Australia, which is strategically and commercially very important to us,” said Alistair Reid, executive vice president for Oceania and South East Asia at Menzies Aviation.

Mr Reid said the award was the result of a close working relationship that Menzies Aviation had cultivated in a number of locations, “which has enabled us to develop a deep understanding of Qantas’ requirements.”

The contract will significantly expand Menzies’ long-standing partnership with the Qantas Group in Australia over the last ten years, the company said. Menzies already provides the airline with a full suite of various services at 14 airports around the world.

It also has a “well established” relationship in Australia and New Zealand with Jetstar.

Menzies has started transitioning operations at both Perth and Brisbane this week and expects operations at the other Qantas stations to start in the next few weeks.

The news follows a contract win in Iraq announced last week. This involves providing services such as fuelling and ground handling at Baghdad International Airport with joint venture partners.

Other recent deals include a new licence that will take the company into Cyprus and the acquisition of a 51% stake in Royal Air Services, a ground and air cargo services provider at eight airports across Pakistan.

In a trading update earlier this month, Menzies said revenues for the year to 31 December 2020 were down 37% on the year before, but that it expects the aviation services market to recover from the second quarter as coronavirus vaccines are rolled out.

Under a cost saving drive, the company said it expected to reduce total employee numbers by 30 per cent. It employed 32,000 before the programme started, including 6,500 in the UK.

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