profile 2008 - swissport · the awarding of ground handling licences (and the start of operations)...

Profile 2008

: Ground Handling

: Cargo

: Fueling

: Executive Aviation

: Aircraft Maintenance

: Aviation Security

Mission: permanently on the move

Customer airlines over 650 Countries 43 Revenue 2007 CHF 1.891 billion USD 1.719 billion EUR 1.182 billion Employees 30,000 Flights handled 2.5 million Tons handled 3.5 million Airports served 187 Passengers handled over 70 million

Key figures

Swissport Profile 2008

Mission/Review and outlook

Industry and market trends

Swissport’s position and advantages

Swissport’s business units – milestones and outlook

Swissport’s staff

Ferrovial: one of the world’s leading infrastructure groups

Financial highlights/Facts & figures

Swissport Services/Corporate Structure of Group Executive Management

02–03

04–05 06–07

08–09

10–11

12–13 14–15

16–17

January 19 Swissport-founder J. In Albon left the company

February 8 Swissport gets „Cargo 2000“ certification

February 14 Monarch and Silverjet selected Unitpool

March 19 Swissport handles its first Airbus A380

March 20 easyJet selects Swissport in Basel

April 24 Bulgaria on the Swissport Network Map

April 30 Swissport Japan with new destination and customers

May 14 Aviation Services „Oscar“ goes to Swissport

May 23 Brussels Airlines signs 5 years contract with Unitpool

July 11 Per H. Utnegaard named new CEO of Swissport International

July 16 Swissport provides web-check-in platform for its customer airlines

July 30 Swissport-Star Alliance Cooperation in Los Angeles

September 14 easyJet selects Swissport in Zürich

October 1 Various contract successes for Swissport all over the globe

October 25 Swissport is selling Unitpool to ASH

December 19 Important Cargo-2000 Compliance in the UK

December 31 Swissport raised revenues by 10,3%, compared to 2006

Milestones 2007 Content overview


Mission

Swissport | is the leading global airport and aviation service provider in terms of quality, reliability, customer dedication, growth, innovation and network coverage

Swissport | offers a wide range of products at optimum value for money and achieves an attractive return on investment for all parties involved

Swissport | is able to provide an “all-inclusive service package” as well as to manage new integrated collaboration models (outsourcing)


2 l 3Review and outlook

A word from the CEO

In today’s dynamic air transport sector, three factors – quality, productivity and flexibility – are crucial to sustainable success. All three have been part of the Swissport formula for years, and continue to be further cultivated and refined.

Our quality is seen – among other things – in our attention to detail, our careful training, our due and full regard to all safety concerns and the way we constantly ask ourselves if our services are surpassing our customers’ expectations. It’s seen in our positive attitude, too, and in the energy and enthusiasm with which we embrace all our international interactions. And there’s no doubt about it: seamless qual-ity results in a smooth operation with higher productivity.

Our productivity is felt in our consistent endeavours to offer the best value for money and have the right people in the right place with the right tools for the job. Swissport is committed to the best-prac-tice approach, striving to standardise all its operations on the best possible processes and procedures. It’s an approach that retains the best talents and makes Swissport an attractive employer. And as a global player with vast industry experience, we’re excellently equipped to maintain it.

Our flexibility is reflected in our consistent customer focus and our swift responses to changing cus-tomer needs. Be it through local agreements or global handling accords, or by developing new products like our new web platform enabling travellers to check in before they leave home, Swissport is always at the cutting edge of developments and playing a pioneering project role.

Given the above, it’s no coincidence that Swissport was again named Best Global Ground Handling Services Company in both 2007 and 2008. We are honoured by this award from airlines, airports, busi-ness partners and suppliers. And we view it as a challenge and a commitment to continue to deliver a number-one service that meets all the wishes and requirements of all our customers in the aviation field. We are pleased to report, too, that those same customers will benefit directly from the further healthy growth that Swissport achieved in 2007, in the form of more stations at more destinations, with a special focus on the emerging markets. And we look forward to continuing our positive and profes-sional collaboration with them throughout 2008 and beyond.

Per UtnegaardPresident & CEO,Swissport International Ltd.


Abuja

Algiers

Alicante

Almeria

Amsterdam

Anchorage

Antwerp

Arrecife

Aruba

Athens

Atlanta

Barcelona

Bariloche

Basel

Berlin

Birmingham

Bonaire

Boston

Brasilia

Brussels

Budapest

Buenos Aires

Cancun

Cape Town

Caracas

Charlotte

Chicago

Cologne

Cordoba

Corfu

Cozumel

Curaçao


4 l 5Industry and market trends

The encouraging growth that the air transport sector saw in 2007 – a 7.4% increase in passenger numbers and a 4.3% rise in air cargo volumes – rests on a sound foundation. While it may ease slightly, industry growth should still amount to some 5% in the present year. Such continued growth will, however be directly dependent on further developments in the health of the global economy.

The world’s aviation and logistics sector can look back on a successful 2007 in which business showed encouraging trends in almost all markets. The greatest growth was seen in the Middle East (up 18%), followed by Latin America, Africa and Asia (up 8% each) and Europe and North America (up 5% each). The world’s airlines, meanwhile, not only increased their capacities and their passenger volumes; they also raised their average load factor to a high 77%. Their financial results improved accordingly, and the members of IATA, the industry’s umbrella association, will post an aggregate black-ink result for 2007, their first for seven years.

The prospects for the world’s airlines in 2008 remain uncertain, however, with the present record oil prices putting a particular burden on costs. Reliable prognoses on the future development of the world’s economy are also difficult to make. From a macro perspective (and above all for the global ground han-dling sector), five factors should prove crucial to continued industry success:

consolidation: we are sure to see further mergers and acquisitions

the low-cost carriers, which will continue to achieve above-average growth and generate new traffic

productivity: making the most efficient use of resources will remain as vital as ever

innovation: even better tools and technologies are still needed in many areas to further simplify processes

deregulation, which should open up new markets and, by permitting more competition, should facilitate access to licences, too.


Curitiba

Dar es Salaam

Daytona Beach

Denver

Douala

Dresden

Durban

Dusseldorf

El Paso

Florence

Florianópolis

Fort Lauderdale

Fort Myers

Fortaleza

Frankfurt

Fukuoka

Geneva

Glasgow

Guadalajara

Hamburg

Hamilton

Hanover

Harlingen

Heraklion

Honolulu

Houston

Islip

Jerez

Johannesburg

Kansas City

Khartoum

Kiev


6 l 7Swissport‘s position and advantages

Swissport occupies a prominent position in the dynamic and ever-evolving aviation sector, a posi-tion the company has carefully established and cemented over the years. And with its commitment to quality, its focus on the customer, its continuous refinement of its products and services and its ability to identify and address new trends and needs, Swissport should continue to consolidate its role as the world’s leading provider of ground handling services to the aviation industry.

Swissport currently offers its products and services at 187 airports in 43 countries, handling over 70 mil-lion passengers and more than 3.5 million tonnes of cargo a year. The impressive statistics can only be achieved, however, through the many long-term collaborations which the company has established with its various business partners (including some 650 customer airlines) and which are firmly founded on reciprocal confidence and trust. In today’s hectic business-to-business sector, continuity, reliability and the ability to respond swiftly to any eventuality are essential to any successful partnership.

Swissport’s most recent achievements include:

: steadily further expanding its global operating network (ten new stations were added in the last 12 months)

: being named Best Global Aviation Service Provider for the eighth consecutive year

: concluding further multinational agreements, under which some airline customers have even entrusted Swissport with their entire hub operations

: securing SGS quality approval for some 100 stations

: becoming the first ground handler to provide smaller and medium-sized airlines with an IT platform that enables them to offer their customers web check-in facilities.

It is ideas, innovations and achievements like these that have helped make Swissport the industry benchmark in many areas of its activities. Not that Swissport intends to rest on its laurels: more quality enhancements have already been planned, actions have already been initiated to help further lower costs for its airline customers, and entries are already being prepared to further new markets, all to ensure that Swissport customers can continue to rely on a sound and growth-minded business partner for all their ground handling needs.


Kilimanjaro

La Romana

Lagos

Laredo

Larnaca

Las Vegas

Leipzig

Liège

Lille

Lima

London

Los Angeles

Luxembourg

Lyon

Madrid

Malabo

Malaga

Manaus

Manchester

Manila

Memphis

Mendoza

Mexico

Miami

Middletown

Milano

Montreal

Mulhouse

Munich

Murcia

Nagoya

Nairobi


8 l 9Swissport‘s business units – milestones and outlook

Swissport aims to be one of the three leading providers in all its markets and in all feasible and viable business areas. While pursuing this objective, Swissport consciously adopts an extremely careful and selective growth strategy which focuses not primarily on size but on sustainability and quality concerns. In addition to maintaining organic growth that is above the market and industry average, Swissport continues to grow through targeted acquisitions, too.

Ground HandlingThe expansions to Japan, Bulgaria, Spain and Algeria were highly encouraging, as was the sizeable growth in business with new and established low-cost carriers. The handling of the first Airbus A380 flight in the USA marked a further milestone, and confirmed that Swissport is ready and waiting for this latest service challenge. The year also saw continued strong collaborations with major airline partners and the opening of the Star Alliance/Swissport Lounge in Los Angeles; and further highlights included the pioneering launch of a web-check-in platform for small and medium-sized carriers and the addition of more stations in Canada to the global Swissport network.

Various attractive major projects are currently being prepared in the emerging markets (i.e. China) which should maintain the present revenue growth. And Swissport received a further recent boost with the awarding of ground handling licences (and the start of operations) in Larnaca and Paphos (Cyprus), as well as in Kiev (Ukraine) on the Ramp.

CargoSwissport Cargo Services reported above-average revenue increases throughout its operations. The business unit also achieved Cargo 2000 Compliance and further enhanced the quality of its services at many operating locations.

Further openings and expansions are imminent at various locations including Vienna, Tel Aviv and Nairobi.

Aviation Specialty ServicesAll three business lines (fueling, aircraft maintenance & aviation security) recorded market share gains in their traditional home markets with more than 70 new contracts secured in the course of the year.

Swissport expects a breakthrough in the near future in the European fueling and line maintenance markets which both have seen little liberalization to date. The company also plans growth in the aviation security sector for its specialist service provider Checkport by expanding the geographical and service scope coverage. Smaller acquisitions are in preparation that will support the development of the Swiss-port Aviation Specialty Services product range.

Highlights of 2007 :

Outlook for 2008 :


Outlook for 2008 :


Outlook for 2008 :


Nantes

Nashville

Natal

New York

Newark

Newcastle

Nice

Nuremberg

Oakland

Oklahoma City

Ontario

Orlando

Osaka

Palma de Mallorca

Paphos

Paris

Peoria

Philadelphia

Phoenix

Port Elizabeth

Port Harcourt

Porto Alegre

Puerto Plata

Punta Cana

Recife

Reno

Rhodes

Rio de Janeiro

Rockford

Rome

Rosario

Rouen


10 l 11Swissport‘s staff

It’s not just the sheer size of the Swissport Group’s worldwide workforce of some 30,000 employees that underlines how vital and varied are the human resources of any global service company; it’s also the fact that those employees are of over 100 different nationalities and serve in more than 80 different functions in 43 different countries to meet customers’ wishes and needs.

Maintaining and managing airport operations are among the most complex undertakings in the entire service sector. Safety, security, punctuality and top professionalism are among the key elements here. If Swissport were a restaurant, its mission would be clear: the right meals made with the right ingredients, cooked right and presented right would turn a product into an experience.

Plus, of course, the right service to go with them. A smile, a tip, a spontaneous gesture, a love of life, a helping hand or a solution to a problem: they all make the difference. And that’s what Swissport strives to provide, too. Swissport’s people work day in, day out on all continents, at temperatures from a hot 30° to a cold minus 10°, putting their expertise, their experience and their friendly and helpful manner at the company’s disposal, to the benefit of hundreds of airlines and millions of air travellers.

It’s to ensure that it doesn’t just follow this service philosophy but lives and breathes it every single day that Swissport attaches so much importance to professional technical training and careful management development. Swissport invested in some 100,000 training days in 2007. And every year, the most prom-ising of its talents are invited to attend the Swissport Academy, where they are prepared for their future international management duties. Even Swissport’s top executives return to the classroom each year at Ferrovial University, where they acquire and refine general leadership qualities that extend well beyond their own company or group.

Swissport is a keen investor in its personnel. After all, a service company will stand or fall by the quality of its people. And in its chosen sector, Swissport fully intends to remain the very best in the business.


Salvador

San Antonio

San Diego

San Fernando

San Francisco

San Jose

San Pedro Sula

Santo Domingo

Sao Paulo

Sarasota

Seattle

Seoul

Singapore

St. Louis

St. Petersburg

Strasbourg

Stuttgart

Tegucigalpa

Tel Aviv

Thessaloniki

Tokyo

Toronto

Ushuaia

Vancouver

Vienna

Warsaw

Washington

Wichita

Worcester

Yaounde

Zurich

12 l 13Ferrovial: one of the world’s leading infrastructure groups

Ferrovial’s investment policy is centred on four principal rev-enue streams: construction, airports, toll roads & car parks and services. A series of strategic acquisitions have transformed Ferrovial into a global player with a pronounced international profile over the last few years. As a result, more than half of the company’s employees now live outside Spain. In finan-cial terms, too, 64% of total revenue is now generated outside Ferrovial’s home country, and the UK, the USA and Canada now account for some 70% of EBITDA.

Business segmentsConstruction : Ferrovial Agromán, which is Ferrovial’s con-struction arm, has become one of Europe’s leading companies in the sector through both rapid growth in the Spanish market and expansion abroad. In addition to a strong presence on the Iberian Peninsula, Ferrovial has significant construction op-erations in Poland, the UK and the USA. Subsidiaries such as Cadagua, which specialises in water treatment plants, are also included in this business segment.

Airports : Ferrovial became the world’s largest private airport management group in 2006 when it acquired BAA, the owner of seven UK airports (London Heathrow, London Gatwick, London Stansted, Glasgow, Edinburgh, Aberdeen and South-ampton) and of Naples Airport in Italy. The new operations have given Ferrovial a global market position in the sector. Some 57% of EBITDA is now derived from hte UK activities. And BAA passenger volumes continue to grow, surpassing 150 million last year.

Toll roads & car parks : Ferrovial’s Cintra subsidiary is one of the biggest private developers of transport infrastructure in the world. The company operates concessions which manage 23 toll roads in Spain, Ireland, Greece, Portugal, Chile, Canada and the USA, and increased its revenues by 15.8% to EUR 1 024.7 million last year. EBITDA also rose 17% to EUR 694 million, and some 78% thereof derived from international business. Cintra is also the leading car park operator in the Spanish market, managing some 267,000 parking spaces.

Services : Ferrovial Services is one of the world’s principal operators in the urban services, waste management, facility management, infrastructure maintenance and airport handling sectors. As well as Swissport, the companies in this business segment include Amey, Cespa and the Ferrovial Group’s Main-tenance of Infrastructures division (MIC). Amey is one of the leading services companies in the UK market, specialising in the integrated maintenance of infrastructure and facility man-agement. Cespa is a Spanish firm which is prominent in the management and treatment of industrial and domestic waste and has further operations in Portugal and Andorra. And MIC, which operates through various affiliates, carries out mainte-nance work and the general upkeep of infrastructures.

www.ferrovial.com

Ferrovial is one of the leading infrastructure groups in the world, encompassing the combined efforts of over 100,000 people spread across 43 countries on all five continents. With a clear focus on sound long-term investments, the company’s business strategy is directed towards the markets of the OECD, in which it specialises in large-scale DBFOM infrastructure projects.


(in CHF million / USD million / EUR million)1997*1998*1999*2000*2001200220032004200520062007(1 USD = CHF 1.10 / 1 EUR = CHF 1.60)* Figures for 1997 through 2000 are unaudited. In those years, Swissport was a unit of SAir Group and was not required to publish separate figures for ground handling activities.

CHF420485683

10321041105611491295149917141891

USD382441621938946960

10451177136315581719

EUR263303427645651660718809937

10711182

Revenue development

Switzerland & EuropeAmericasAsia / Middle East / Africa

56%38%6%

Revenue by region

Aviation Specialty ServicesCargo Ground Handling

8%24%68%

Share of revenue by activity


Financial Highlights 2007


14 l 15

19971998199920002001200220032004200520062007

3,0008,000

15,00017,00017,00018,00020,00021,00023,00027,00030,000

Growth by employees

19971998199920002001200220032004200520062007

344

101127130153163166175180187

Growth by stations

No. of flights handled(in million)200220032004200520062007

Cargo tonnes handled(in million)200220032004200520062007

Airline customers200220032004200520062007

1.651.802.002.202.302.50

2.503.003.203.203.303.50

600650650650650650

Other key figures

SWISS KLM easyJet Lufthansa Ryanair Northewest Airlines United Airlines British Airways Virgin Atlantic Airways Air France

Monarch Airlines GOL Singapore Airlines Delta Airlines Alitalia Mexicana China Airlines Japan Airlines Korean Air Austrian Airlines

Top 20 customers by revenue (2007)

– Market and airport liberalization– Deregulation– Cost pressures and outsourcing– Aggressive low cost carriers– Single sourcing with strategic partners– Market consolidation– Security is gaining importance

Worldwide trends

Financial Highlights 2007 Facts & figures


Swissport International Ltd.

P.O. Box

8058 Zürich-Airport

Switzerland

Phone: +41 43 812 2020

Fax: +41 43 321 2902

[email protected]

www.swissport.com

Contact


16 l 17Corporate Structure of Group Executive Management

Corporate Development

Operations

Communications

Cargo Services Aviation SpecialtyServices

Ground Handling Europe / Asia / Middle East / Africa

Finance

Legal

Human Resources

Ground HandlingAmericas

President & CEO

– Algeria– Austria– China– Cyprus– France – Germany– Groundstar UK – India – Israel – Italy – Japan– Kenya– Korea– Philippines– Poland

– Singapore– South Africa – Spain – Sudan– Switzerland– Tanzania – Ukraine

and ExecutiveAviation Services

– Argentina – Brasil – Canada– CFE (overnight freighters)– Dominican Republic– Hallmark– Mexico – Peru – USA

– Aruba – Austria– Belgium – Bonaire – Brazil – Bulgaria– Canada– China– Curacao – France – Germany – Greece– Honduras– Hungary – Israel – Italy

– Kenya – Korea– Luxembourg – Mexico – Netherlands– Peru – Philippines – Russia – Singapore– South Africa– Sudan – Switzerland– Tanzania– UK – USA – Venezuela

– Swissport Aircraft Maintenance – Swissport Aviation Security – Swissport Fueling


profile 2008 - swissport · the awarding of ground handling licences (and the start of operations)...

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