Swissport International Ltd. (“Swissport”) and Scandinavian Airline Systems (“SAS”) have announced they have signed a Letter of Intent. The letter creates the basis for continued negotiations between the two companies, aiming at an agreement to transfer full ownership of SAS ground handling in Denmark, Sweden and Norway to Swissport. As a first step, both parties intend to establish a joint venture company to which the business and operations of SAS ground handling and Spirit (cargo handling) will be transferred.
The Letter of Intent is paving the way for continued negotiations between SAS and Swissport International related to the complete outsourcing of SAS ground and cargo handling services including the workforce of approximately 5000 full time employees in Scandinavia.
It is the intention of both companies to establish a joint venture company of which Swissport will hold 51 percent ownership and SAS 49 percent. Swissport will take the management and operational responsibility for the company that will provide the ground and cargo handling for SAS and other airline customers in Scandinavia. SAS will successively transfer full ownership of the company to Swissport.
Per H. Utnegaard, Group President and CEO Swissport International, “I am very proud of SAS having chosen Swissport as their partner for outsourcing the ground service business. This is a perfect strategic fit for both companies, and for Swissport this step into the Scandinavian market is an important part of our defined growth strategy and our worldwide expansion.”