Schiphol halving number of ground-handling firms to eradicate quality problems¶
Three companies selected in bid to address underlying structural issues and improve service efficiency at Dutch hub.
Amsterdam Schiphol airport’s operator is halving the number of ground-handling providers from next year, having selected three companies for its new handling model.
KLM, Dnata and Viggo have been chosen to remain, from the current six operating at the hub, and will be granted a seven-year concession for baggage and aircraft handling.
The airport operator says these three companies “scored highest” on five qualitative criteria, such as service provision and employment practices.
It adds that the selection “marks the end of the current open market”.
The tender follows a decision made by the Dutch infrastructure ministry in April 2024, when it expressed concerns over the relatively large number of ground-handling firms at Schiphol.
Schiphol suffers from several problems in ground-handling, the ministry said, including poor quality due to an inefficient market, persistent staff shortages, poor working conditions, and safety concerns.
“There is a high degree of competition between them and high pressure to keep prices and wages low,” it stated.
“Because the companies compete at low margins on a small market share, there is also little profit to be made.”
Despite the low profits, handlers are encouraged to remain at Schiphol because having a presence at the capital hub amounts to an advantage when competing for multi-airport contracts.
“Business results at Schiphol are not decisive for the choice to [continue to] offer services,” the ministry pointed out.
It added that the “chaotic” summers of 2021 and 2022 showed the impact of staff shortages and strike action, and that the causes were not structurally addressed.
Schiphol’s tender process and re-organisation of handling is intended to improve working conditions, co-operation, and the quality of services to airlines and passengers. It will also increase efficiency and apron space through more joint use of equipment.
“It provides employees with the pleasant working environment they need to deliver top performance every day because that is exactly what they do,” says Royal Schiphol Group chief operating officer Patricia Vitalis.
“And it enables us to set clear requirements for parties operating at the airport. Under the old model, with an open market, that wasn’t really possible.”
While the other three handling companies — Aviapartner, Swissport and Menzies — were not chosen, and will cease their activities, Royal Schiphol Group says no jobs will be lost as a result of the tender.
“The aim is to support employees in moving from one job to another, while maintaining their terms and conditions,” it says, adding that “solid agreements” have been reached between trade unions and the ground-handling employers’ association.
Once the handling selection process has been finalised in the third quarter of this year, a transition period will follow and employees should have clarity by early next year, with the new partnerships starting in the second quarter of 2027.Subscribe to gain access to all newsAlready have a subscription?Log in.Choose your subscriptionConsidering a corporate subscription?Contact usto find out more.
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