SWISSPORT PROFITS UP INSPITE OF INCREASED COMPETITION
The loss of the Swissport monopoly for aircraft and cargo handling at Tanzanias main airports has apparently not dented the profitability of the company, with the latest figures available now showing an increase before taxes of 8 percent in a year by year comparison.
The company, traded at the Dar es Salaam stock exchange, has clearly defied the odds and additional aircraft movements, up by 8 percent compared with 2011, and of cargo handling operations, up by a remarkable 16 percent compared to the past year under review, have made an impact on the companys bottom line.
The company used the opportunity when making the announcement to also break the news of plans to build a new custom designed warehouse, due to cost an estimated 9.4 million US Dollars, though regulatory approvals are still to be obtained as due process has to be followed.
The good news had an immediate impact on the share value, which rose by nearly 12 percent in recent days, or over 63 percent in value over the past 12 months, giving the shareholders something to cheer about.
Seems opening up to competition actually can work and that, when both quality and pricing of services is of importance, a company still can do better through focused management and strict cost controls. Watch this space.