October 2022 - 6

Editor's Note
JOSH SMITH
josh@AviationPros.com
+1 920-563-1644
LinkedIn
How will Mergers and Acquisitions
Impact Ground Handling?
Ground service providers continue to combine resources in order to
enter new markets and strengthen their offerings.
I
n the last several months, a number of announcements
have been made regarding acquisitions within the ground
handling sector.
Most recently, SATS announced a proposed acquisition
of Worldwide Flight Services (WFS). According to a release, the
deal aims to better serve air cargo customers in SATS' hubs in
Asia, Europe and the United States while complementing new
growth markets in Latin America and Africa, among others.
The proposed transaction, which is anticipated to be complete
by March 2023 pending shareholder and regulatory
approvals, would significantly expand SATS' footprint as WFS
operates in five of the top 10 cargo airports in North America
and Europe, Middle East and Africa (EMEA) while SATS is
present in four of the top 10 cargo airports in Asia, including
Hong Kong, Taipei, Singapore and Beijing.
" This acquisition has been carefully selected to fit our strategy
of significant scale and value-added growth, " Euleen Goh,
chairman of SATS, said in a release. " We look to bring the
newly added capabilities to strengthen our partnership with
our customers and support the drive for competitive standing
of Singapore's Changi Airport Hub. "
" By bringing together our respective strengths, we will be
able to build on our trusted relationships around the world, "
Craig Smyth, WFS CEO, said in a release.
Prior to the SATS/WFS announcement, Agility announced
it acquired Menzies Aviation and intends to combine the business
with National Aviation Services (NAS), establishing a
combined presence in 58 countries.
When the companies merge, the combined company will
operate under the Menzies Aviation name and provide air
cargo, fuel and ground services.
" We will have the scale and resources to expand and grow
as the industry recovers from the COVID-19 pandemic, "
Hassan El-Houry, who will serve as chairman of the combined
company after previously being the CEO at NAS, said
in a release. " Commercial aviation is a key engine of global
6 || Ground Support Worldwide || October 2022
economic growth, and our customers need partners they can
count on as flight volumes return. "
Domestically in the United States, ground service providers
are growing via acquisition as well. Alliance Ground International
(AGI) announced it will acquire Airport Terminal
Services (ATS). The is the third major acquisition made by AGI
since October 2021, having previously announced the purchase
of Total Airport
Services (TAS) and Maestro
International Cargo.
" As AGI is a cargo
handler working with
cargo freighter operations,
this opportunity
with ATS will allow us
to build our presence
in the airport terminal
and passenger side
of the business, " AGI
CEO Jared Azcuy said
in a release.
Mergers and acquisitions are not new to the ground hanBy
bringing together our
respective strengths, we
will be able to build on
our trusted relationships
around the world
- Craig Smyth,
WFS CEO
dling space. Handlers have combined resources to enter new
markets and strengthen their offerings for many years.
But with each new deal, the industry's landscape is altered.
In the past, we have seen similar changes as airlines merged.
Similarly, consolidation of GSE manufacturers has made an
impact. How these recent examples of mergers and acquisitions
influence the ground handling world are yet to be seen.
Will these larger entities have more resources to better serve
airline customers and attract new people to the labor pool?
Will the recent acquisition prompt other companies to partner
and consolidate in order to stay competitive?
I welcome your insight and feedback on this topic.
Please email me at josh@AviationPros.com to share
your thoughts.
October 2022

Table of Contents for the Digital Edition of October 2022
