Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Airport service providers could sue over flight caps, says Swissport boss

Published 06/20/2022, 07:51 AM
Updated 06/20/2022, 07:56 AM
© Reuters. A Swissport luggage carrier is pictured at the Zaventem International Airport, as Belgium eases restrictions aimed to contain the spread of the coronavirus disease (COVID-19) outbreak, near Brussels, Belgium June 15, 2020. REUTERS/Francois Lenoir

By Alexander Cornwell

DOHA (Reuters) - Airports capping flight numbers this summer could face legal challenges from service providers to recoup costs after recruiting workers based on original schedules, the chief executive of aviation services company Swissport said on Monday.

Airports including London's Gatwick and Amsterdam's Schiphol have said in recent days that they would offer fewer flights this summer than originally planned, citing a labour crunch that has left them struggling to cope with surging travel demand.

"I think that there's going to be some challenges, I suspect legally, to putting caps on airlines," Swissport CEO Warick Brady told Reuters at an airline industry event in Qatar.

"We recruited enough people for the summer schedule and they cut the schedules, so we now have too many people. We are going to have a cost overhang because they are cutting."

Summer schedules are being cut in the face of mounting public criticism of airports over huge delays. Passengers have often had to wait hours in snaking queues through security and immigration, with some then missing their flights.

Swissport, which provides passenger and cargo handling services at airports around the world, including Schiphol, is offering hiring and retention bonuses as it looks to recruit about 15,000 new employees this year, Brady said.

He said governments should make it easier to recruit workers, but he also criticised airports that ramped up flights without giving service providers enough time to hire the necessary staff.

Industry executives have criticised processes for airport staff to obtain security permits needed to start work, which they say could be done quicker without taking shortcuts.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

International Air Transport Association (IATA) Director General Willie Walsh told Reuters it was disappointing that airports were capping summer schedules, but that it was better to do it now than to cancel flights on the day of service.

Latest comments

good news of today
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.