Specialist
Former EVP, Europe, Central, East & West at Swissport International Ltd
Agenda
- Parent company relationship drivers
- Airport service and cargo regional growth drivers and pricing
- Industry consolidation and potential valuation multiples
Questions
1.
How closely correlated is the cargo and ground-handling market with general GDP? Do you use that as a sensible proxy for growth?
2.
My understanding is the other growth driver for outsourced ground handlers is the rate of outsourcing coming from airlines. Is it still sensible to estimate that about 50% of ground handling and cargo is conducted by the airlines, or is that split no longer appropriate?
3.
Do you think the general condition of the airline industry as it is now makes airlines keener to outsource certain stations, considering the series of bankruptcies?
4.
How much better would you expect the margins to be on an international flight versus a domestic one, as a rule of thumb?
5.
Generally, do certain ground handlers deal with more domestic flights than international flights? What’s the mix like there?
6.
It appears one of the challenges for European ground handlers is growing in China, requiring stations, growing volumes and growing planes, so part of the rationale behind the acquisition by HNA may have been to open that market. What are the specific challenges that European ground handlers face when trying to expand in China? That doesn’t appear to have materialised for Swissport.
7.
How large is Swissport’s station footprint in Asia?
8.
What kind of growth do you expect to come out of Africa for the market in general?
9.
Is there a significant difference in pricing across the core markets, in the US, Europe, Asia and Africa?
10.
You mentioned that Europe is possibly a low growth, competitive market. How do you see profitability developing in that market, given that that is about two-thirds of Swissport’s top line? Would you be concerned?
11.
What kind of market share do you need to have for a given station to be profitable?
12.
How much station growth would you expect to see from Swissport going forwards?
13.
Do airlines generally expect a discount when it’s time to renew? Is that normally baked into these successful renewals, or are they usually renewed at the same price?
14.
Do you find that price discipline between ground handlers is maintained in the low or slow growth environment in Europe?
15.
Regarding HNA, what are the strategic options in terms of the parent company and the relationship it has with Swissport?
16.
Do you have any idea how HNA has run the asset and what it has done with the asset while it’s been under its stewardship?
17.
Do you think the Aerocare acquisition is a positive for Swissport?
18.
Would you expect to see any additional consolidation in the ground-handling market?
19.
Are there synergies and scale benefits beyond the station level?
20.
Do you think there are any attractive acquisition targets in Asia or in Africa for a business like Swissport?
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