On 7 March, global aviation services provider Swissport acquired Aerocare, a leading ground handler in Australia and New Zealand, as well as subsidiaries Carbridge, Skycare and EasyCart
The acquisition of Aerocare had been announced in November 2017 but it was only in March this year that Swissport confirmed that it had received all the necessary regulatory approvals for the deal, including that of Australia’s Foreign Investment Review Board.
The purchase represents a significant boost to Swissport’s footprint in the wider Eastern Asia region, as well as an entrance to the Australasian market. Eric Born, Swissport group president and CEO explains: “The integration of Aerocare into Swissport is a key milestone in the execution of our growth strategy.
“Aerocare provides us with an entrance into Australia and New Zealand and it will serve as our platform to expand in the fast-growing Asia-Pacific markets.”
Aerocare was formed in 1992 and is, says Swissport, the market leader in airline services provision in the region. It employs more than 3,000 staff and provides services to major domestic and international airlines across 36 airports in Australia and New Zealand. It handles more than 160,000 flights a year, and serves some 15 million passengers annually.
“The integration of Aerocare into Swissport is a key milestone in the execution of our growth strategy”
According to a Swissport statement, Aerocare’s existing management team will continue to run the business in Australia and in New Zealand from its Australian office. This is, Swissport says, “to ensure continuity in service quality and in client-relations management”.
“There is an exceptional cultural fit between the two companies and I am confident that we will jointly continue our success story in the region and beyond,” Born considers.
Christoph Meier, a spokesman for Swissport, explains to Airside International the thinking behind and evolution of the purchase. “We had identified Aerocare [as a possible acquisition] in 2016,” he recalls.
“In the process of our strategic planning, we continuously scan the market for attractive opportunities. This includes potential acquisitions targets. Aerocare’s market presence is 100% complementary to that of Swissport and the company is a well-established and well-managed business. It will contribute returns instantly.”
Moreover, “The Aerocare acquisition is a very significant step for Swissport. The acquisition adds 36 airports to our global network, which will now increase to 315 stations.
“Aerocare provides Swissport with access to Australia and New Zealand, two very attractive markets. Swissport is now present on all five continents. Beyond that, the integration of Aerocare provides us with an ideal platform from which to further expand our presence in the fast-growing Asia-Pacific markets. It is very positive to have an established base in this dynamic region.”
Sydney-headquartered Aerocare subsidiary Carbridge, meanwhile, is Australia’s largest and most experienced airport bus specialist. It is “too early to say”, Meier states, whether Swissport will retain its bus provision offering (Carbridge offers the innovative TORO and DUO buses) as well its on-airport bus service provision. “Together with Aerocare’s management team, we will discuss the strategic development for each business segment in the coming weeks,” Meier says.
The Aerocare acquisition forms just one part of a wider strategy to expand Swissport’s ground services offering in the area. “Swissport plans to further expand in the Asia-Pacific region,” Meier confirms. “Beyond ground services, where Aerocare already has a well-established presence in Australia and New Zealand, we will be looking at the market potential in the cargo handling business. Swissport operates 133 warehouses worldwide and is also looking at growing this business.”
