No dent in Swissport earnings a year after loss of monopoly

Swissport Tanzania has reported improved results for the first six months of 2010 despite a decrease in the number of flights and cargo handled.

Chairman of the board, Juan Jose Andres Alvez, said that the total revenue increased by 4.0 per cent while operating costs increased by only 1.0 per cent, while pre-tax profit increased by 8.0 per cent from Tsh2.55 billion ($1.82 million) to Tsh2.76 billion ($1.97 million).

Mr Alvez said despite decrease in business compared with the same period last year, “the company is reporting an improved results due to the enhanced operation efficiency, favourable economic factors and operation dynamics.”

The reduced business was occassioned by the end last year of the monopoly of flights and cargo handling by the company. Swissport had a monopoly since it was incorporated in 1984.

The end of the monopoly saw Precision Air, which accounted for over 90 per cent of the domestic flights, reduce the number of flights and cargo handled by Swissport Tanzania in the first six months of this year.

Precision Air, started self-handling about a year ago when Swissport’s monopoly ended, and the number of flights and cargo handed by Swissport declined to 46 per cent and 12 per cent respectively, compared to the same period a year ago.

Swissport, a company listed at the Dar Stock Exchange, managed to sign a five-year concession agreement with Tanzania Airport Authority that came into effect since June this year.

“The agreement gives us the mandate to operate at the Julius Nyerere International Airport for a period of five years,” said Mr Alvez adding that this adds up to a five years concession agreement.