Swissport International AG is an airport ground services and air cargo handling company. Founded in 1996 and headquartered in Switzerland, it has more than 60,000 employees and a presence across around 300 airports and 44 countries globally.
Where is Swissport the most consolidated, and which markets do you view as having the most potential for expansion?
Our core focus is ground handling; we're the largest in the world by revenue and also the second-largest cargo handler after WFS who handle 7 million tons. We handle about 5 million tons, followed by Menzies Aviation which is at 1.5 million tons. Our largest market is North America, followed by the UK and Ireland.
We're also significant in Switzerland and Italy. Our business is divided into six regions: LATAM (14 countries), UK and Ireland, Switzerland withItaly and France, CEMEA (continental Europe, Middle East, and Africa, with 18 countries), and APAC (Australia, New Zealand, Japan, Korea,). My main focus at the moment is on the US, but Europe, the Middle East, and Africa are also crucial markets.
You have been significantly growing your network in Saudi Arabia, too. Why are these new growth markets interesting for Swissport?
Saudi Arabia has one of the highest growth rates globally, backed by significant infrastructure investment. We've been there for more than seven years, and in that time, the changes have been enormous. About 40% of our workers in Saudi are now female, a significant societal change. The aviation investment is huge, with a clear vision for 2030. We're now the number two player in Saudi, a market that will need multiple players to support its growth.
Africa is another growth opportunity for us, with markets like Morocco, Tanzania, and Kenya. We’re also focusing on LATAM, with major markets in Argentina, Chile, Mexico, and Brazil, along with the Caribbean. Growth is high in these regions, as well as in Asia and the Middle East. We also see potential in outsourcing growth, as seen with Qantas in Australia. More airlines are starting to outsource their ground handling to invest their capital more efficiently in airplanes rather than managing their hubs.
Swissport is prioritizing electric vehicles with an investment of one billion euros over the next ten years. What are the main barriers to growing your fleet of electric vehicles?
The price of electric equipment is decreasing, and they are cheaper to operate, but infrastructure at airports is the main hurdle. For example, in Zurich, even though it’s highly sophisticated, there's a limit to the amount of electric equipment due to the availability of charging stations. In the UK, the issue is the infrastructure investment needed. For our cargo business, charging 40 forklifts overnight requires significant space and infrastructure, which is currently lacking.
Regions vary significantly in their investment in electric infrastructure. The US, Europe, and Australia are investing, but LATAM and Africa are lagging behind. In Brazil, for instance, their 20-year vision includes little on electric equipment. Our commitment to ground support equipment (GSE) could progress faster if airports had the necessary infrastructure. We're aiming to extend our electric GSE to 55% by 2032, but this depends on the availability of charging facilities.
Are you at all concerned that the growing travel demand will overshadow efforts to become more sustainable?
The industry has grown one and a half to two times GDP over the last 50 years, despite economic cycles like 9/11, the financial crisis, and COVID. While there are capacity constraints due to supply chain issues, these will eventually be resolved, and fares will adjust accordingly. More government and manufacturer intervention is needed to address aviation emissions, as our electric ground equipment alone won’t make a significant difference.
Sustainability requires addressing emissions from airplanes, where the majority of aviation emissions originate. Airports and airlines need to invest in sustainable practices and technologies. While we aim for net zero by 2050, with significant reductions by 2032, it will require collaboration across the industry to meet these goals effectively.
Swissport recently joined Airbus OpenCargoLab to improve data collection from the physical handling of cargo. What conclusions have you now drawn from your analysis?
Cargo is a traditional, relationship-driven business. We’re leading the way with innovations like mobile devices, integrated weighing solutions, and advanced software from Champ. This includes task managers, customer portals, and systems allowing freight forwarders to book slots, reducing truck waiting times and emissions. Partnering with Airbus, KLM, Kuehne+Nagel, Champ, and Fraport on the A350 freighter project helps us collaborate on improving the cargo process.
A strong workforce pipeline is necessary for ground services, and Swissport even has its own training academy to support the future workforce. How do you plan to address growing staffing challenges?
Post-COVID, the industry lost many experienced workers, including pilots, cabin crew, and ground staff. In 2022, we recruited 37,000 people globally, many of whom are new to the industry. The challenge has been getting the right quality of people and training them for an industry that previously relied on experienced workers. Working on the ramp is hazardous and requires a specific skill set, which has been challenging to find.
We focus on investing in skills and training to retain quality staff. We’ve introduced six core values and red rules to improve working conditions, such as competitive pay, proper equipment, and safe, comfortable break areas. Each station is evaluated to ensure these standards are met. Additionally, we’re developing a global aviation academy to enhance training and career development opportunities within Swissport.
