WGH reports this in a press release on Tuesday. The airports affected are Trondheim, Stavanger, Bodø, Haugesund, Kristiansund and Ålesund. On the other hand, the collaboration will continue in Kirkenes, Alta, Svalbard, Evenes, Molde and Lakselv. Managing Director of WGH, Marius Myhre, tells news that it is a significant portfolio that the company is now losing: – We are losing around 200 million in turnover out of an annual turnover of around 1.3 billion for the company. It is a significant portfolio of contracts that we have today announced that we are losing. WGH and SAS have worked together for a number of years, and the fact that the latter is now replacing 80 per cent of its ground services at the same time makes the situation demanding for WGH. WGH: A bit surprising – What did you get as a reason? – SAS is probably the right addressee for that question. But I can say that the competition in the market is tough. All the players in aviation are under pressure in terms of the financial situation, says Myhre and continues: Marius Myhre is managing director of Widerøe ground handling (WGH). Photo: Einar Aslaksen / Einar Aslaksen – In this sense, the entire value chain is challenged to try to seek cost reductions. It is probably primarily about the commercial terms, although we feel that we have come a long way, says Myhre. – You say you are surprised by SAS. Can you elaborate? – The scope of contract transfers is very large. And we feel that we have come a long way compared to the commercial terms we already have with SAS. We are not surprised that the airlines are chasing cost reductions, but the fact that they change such a large part of the contract when we believe that we ourselves have gone too far is a little surprising. Are there too many employees – Are jobs at risk? – Our assessment is that it will unfortunately be the case that we will find ourselves in a situation of redundancy at the six affected airports, but the extent is unknown. Both as a matter of course from clarifications about ongoing other tender processes, such as with Norwegian, he says and adds: – But also that we must have discussions and interaction with the shop stewards to handle this situation. He denies that passengers will notice the change in who provides ground services. SAS: Strengthens the agreement with Aviator Communications Manager at SAS, Tonje Sund, that the company Aviator takes over the deliveries that WGH has carried out until now. – Aviator takes over the delivery of ground services at six airports, in addition to the three where they are already present (Bergen, Tromsø and Kristiansand). – Why do you choose to change supplier? – It is the result of a commercial tender round, but we never go into detail about agreements. Aviator will serve nine airports, while Widerøe will serve a few others. So we will continue to work with both Aviator and WGH also after 1 February. We look forward to a good collaboration with both companies. Tonje Sund is communications manager at SAS. – WGH says they are surprised and believe they have gone too far. What is your comment on that? – We have no comment beyond the fact that we have had a tender round and that this was the outcome of it. In 2021, WGH lost the competition to deliver services to SAS in Bergen, Tromsø and Kristiansand. This led to many employees losing their jobs. Aviation analyst: Can make Norwegian acquisition easier He Jørgen Elnæs is general manager of Winair and has a long career in aviation himself. He was not surprised by today’s news, and believes it bears the stamp of a “thank you for the last” to Widerøe. The background is that Norwegian wants to buy both Widerøe and WGH. – Basically, this is probably part of the picture, where SAS chooses to find another partner at the major airports. This comes as no great surprise to me. Hans Jørgen Elnæs is an aviation analyst in his own company, Winair. Photo: Marit Sirum-Eikre / news – Why? – SAS was very clear when Norwegian announced that they wanted to buy Widerøe and WGH, that they were caught in bed and were very surprised. Then came the question of what SAS is doing with the agreement they have with WGH. SAS was then clear that they were complying with the contract they had. Now they have chosen to withdraw from the contract according to the notice period they have. The acquisition between Norwegian and Widerøe must be approved by the Norwegian Competition Authority, and the authority has given the companies a preliminary no. The background is that they fear an acquisition will result in less competition in the Norwegian airline market. Elnæs believes that SAS’s decision to change suppliers of ground services may make an acquisition more “palatable” for the Norwegian Competition Authority. – I think it will be a simpler process for the Competition Authority to approve the acquisition now that WGH is very exposed. It will be difficult for WGH to find new customers at these airports, especially when there are not many that have as high a production as SAS has. So this could be positive for Norwegian to be able to buy WGH, continues Elnæs. The Norwegian Competition Authority has announced that they will present a new assessment by 17 November 2023. The deadline for the Competition Authority’s review is 3 January 2024.
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Widerøe ground handling loses contract worth NOK 200 million with SAS – news Nordland
