An evaluation panel from Portugal’s National Civil Aviation Authority (ANAC) has ranked the bid from a Spanish consortium, comprising South and Clece, as the top contender for ground handling services at Lisbon, Porto, and Faro airports. The consortium, which includes the cleaning and space management firm Clece from the ACS group owned by Florentino Perez, president of Real Madrid, has surpassed Menzies/SPdh, formerly known as Groundforce.
The new ground handling subsidiary, wholly owned by the aviation group IAG, which includes Iberia, British Airways, and Aer Lingus among others, employs 7,000 staff and operates at 38 Spanish airports. It provides a variety of services to 150 airlines, including those within its own group.
Currently, the only major airport where South holds a ground handling license is Madrid-Barajas.
In September 2023, Iberia Airport Services, the previous service provider, lost its licenses at four of Spain’s five largest airports to competing companies Aviapartner, Groundforce/Globalia, Menzies, and Swissport.
In total, Iberia Airport Services did not renew licenses at eight airports, namely those in Barcelona, Bilbao, Málaga, Alicante, Palma de Mallorca, Ibiza, Las Palmas, and Tenerife South.
Iberia’s officials expressed being “perplexed” by the outcome of a recent tender held by the infrastructure manager, Aena.
In January 2024, Iberia committed to unions that a new company would be formed to continue operations previously managed by Iberia Airport Services, absorbing most of its workforce. South began its operations in May of the past year.
On Thursday, the 16th, the ANAC panel concluded that the Clece/South consortium provided a superior allocation of human and material resources for operations at Lisbon, Porto, and Faro airports compared to Menzies.
According to an initial report observed, the panel assigned a score of 95.2523 to Clece/South consortium, while Menzies received a score of 93.0526.
Menzies has expressed disagreement with the assigned ranking and announced plans to appeal the decision within a five-day period.
Menzies is currently the leading ground handling service provider in Portuguese airports, employing 3,500 people.
With the current handling licenses at Lisbon, Porto, and Faro airports set to expire on November 19, ANAC, anticipating Menzies’ appeal, has extended these concessions by another year.
In mid-2021, SPdH, which operates Groundforce, filed for insolvency. Two years later, the insolvency administrators presented a creditor recovery plan resulting in the entry of British firm Menzies, which now holds 50.1% of the company, while TAP retains 49.9%.
This plan enabled the company to continue its operations and retain most jobs, with a phased repayment of approximately 30 million euros to creditors by 2029.
Major creditors include ANA — Aeroportos de Portugal (12 million euros), Instituto da Segurança Social (3.4 million euros), TAP (3.1 million euros), Fidelidade (2.1 million euros), and BCP (two million euros).
If Menzies Portugal fails to renew handling licenses at the three largest national airports, it may face significant operational challenges and financial strain, potentially impacting creditor payments.
An agreement was reached with TAP, currently undergoing privatization, under which Menzies offers progressive discounts on its provided services.
The IAG group, which includes Iberia, is one of three contenders seeking to acquire 49.9% of the national airline’s capital. The other parties involved are Germany’s Lufthansa and the Air France/KLM group.
The aviation sector unions, Sintac and Sitava, have already expressed concerns regarding the potential risks associated with selecting the Clece/South consortium and the implications of Menzies losing its licenses on industry employment.
