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Swissport bemoans Covid-19 snags

SWISSPORT Tanzania has sent about 400 employees on paid leave as one of the means of addressing reduced revenue caused by the reduction of the number of flights the company handles, and the effects of the novel coronavirus pandemic.

Giving highlights of the 2019 annual report yesterday in Dar es Salaam, the Chief Executive Officer (CEO), Mr Mrisho Yassin, said that the employees on paid leave receive 50 percent of their salary, while the remaining ones face salary reductions.

“The outbreak of Covid-19 has negatively affected the company’s business plans and the 2020 financial performance; It largely depends upon the board through the firm’s leadership to take necessary measures to ensure running cost reduction to cope with the revenue decrease.”

Salary reductions of salaries was among the steps that the management had taken as a means of coping with the effects of the novel virus.

“In reducing the sting of staying at home, we have decided to pay those on leave half of their salary. This will also help us in making savings,” he remarked.

Mr Yassin revealed that the company was holding discussions with the government to see if it can step in to offer any relief, to facilitate its smooth operations.

In the report, Swiss port announced a 70 percent decrease in earning in the financial year 2019; Noting that the running costs of the firm in the year 2019 was 32.3bn/-a reduction of 15 percent compared to 37.8bn/-of 2018.

He explained that during Covid-19 until the skies were closed; The firm continued serving Air Tanzania, as well as Kenyan Airways, Ethiopia Airlines, and Qatar among others, especially in the repatriation activities.

However, he said that now that the Tanzanian skyline is open, it brings relief that things will not be so bad in the 2020 financial year, stating: “The fear we had that this will cause a long term effect has eased as we see the skies opening, including airlines like Qatar, KLM, Ethiopia, believing that the company’s activities will continue as usual.”

The firm has started serving and is expecting to receive Air Tanzania, Ethiopian Airlines, Qatar (passenger), KLM (cargo), and Swiss Air (cargo).

He noted that during the entire period, even though flight handling was affected by the effects of competition, the cargo business has maintained stable and continues to contribute positively to the business.

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