A targeted niche operation is no longer enough in airport cargo handling services.
Virgin Atlantic Cargo ended its foray into selling ground service this month when it sold its North American third-party airport operation to Worldwide Flight Services.
The airline hoped to build its operations handling its own cargo into a profit center when it started selling ground handling service in the 1990s and won over a handful of other airlines as clients. But since then companies such as WFS and Menzies have expanded into global businesses by buying up national operators and selling broader ramp services in addition to cargo handling.
"We reached a point where we had to branch out, possibly into ramp or passenger handling, or outsource the operation to a company who can realize the value when aligned to theirs," said Jack Fiol, Virgin Cargo's vice president in the United States.
Under the sale agreement, WFS will take over Virgin's handling assets and staff at five U.S. cities - Newark, N.J., Los Angeles, Miami, Washington and Orlando, Fla. - and serve Virgin and its customers for at least five years.