John Menzies unveils contracts at Edinburgh and Glasgow airports

John Menzies, the Edinburgh-headquartered global aviation services group, is on the ascent after securing a string of contract wins and renewals at airports including Edinburgh and Glasgow.

The Menzies Aviation business operates at 219 airports in 37 countries. Picture: John Menzies plc

The news will come as a relief to investors after the group tumbled into the red during the first half having being buffeted by headwinds affecting the wider aviation market.

Menzies – one of Scotland’s oldest companies dating back to 1833 – said it had agreed a three-year contract with Lufthansa at Glasgow Airport.

From this December, the firm will deliver passenger, ramp and de-icing services for Germany’s largest airline. It has also landed a new five-year seasonal contract with United Airlines at Glasgow, which will see it provide passenger and ramp services from March 2020, when the US airline’s summer schedule kicks in.

At Edinburgh Airport, Swiss airline Edelweiss Air has selected Menzies as its “ground handler of choice”. Starting from November, the firm will deliver passenger, ramp and de-icing services for a term of three years.

Lufthansa and United Airlines have also renewed their ground handling contracts with Menzies at Edinburgh, for a term of three and five years respectively.

Meanwhile, at London’s Gatwick Airport, Wizz Air has renewed its passenger, ramp, cleaning and de-icing contract with the Scots group for a three-year term. Menzies will service four daily flights during the summer and two daily flights during the winter.

Royal Air Maroc, the Moroccan national carrier, has also extended its ground handling agreement for three years, covering passenger, ramp and cabin cleaning services.

At London Heathrow – Britain’s busiest airport – Tap Air Portugal has renewed its ground handling contract for three years, including the delivery of passenger, ramp and ticketing services. Also at Heathrow, Middle Eastern Airlines has selected Menzies as its cargo handling partner for a further two years.

Giles Wilson, Menzies’ chief executive, said: “It is great to see continued momentum across the UK business following our recent win with EasyJet at Luton Airport.

“These multiple contract wins and renewals are testament to the high quality service delivered by Menzies professionals across major UK airports.

“Menzies is committed to providing a premium service to our customers, which is why we are seeing contracts renewed time and time again.

“We look forward to strengthening our existing partnerships, and to forging equally strong relationships with new airline customers in the UK over the coming years.”

Half-year results for the six months to the end of June, released in August, showed that the group suffered a pre-tax loss of £4.4 million, from a profit of £8.3m a year earlier. That was despite reported revenues rising to £649.9m from £627.2m.

The losses were blamed in part on cuts in flight schedules because of the global grounding of Boeing’s 737 MAX jets in the wake of two fatal crashes.Menzies became a pure aviation business after selling its newsprint distribution division to a private equity firm. The company began life as a book store business.