Go-Ahead may be willing to sell airline division

Mar 26 2009 by Andrew Mernin, The Journal

TRANSPORT group Go-Ahead says it is willing to listen to offers for its flagging airline division after recently axing 500 jobs.

The Newcastle firm yesterday said it had scaled back its aviation services team by about 12.5% this financial year because of a substantial drop in cargo tonnage worldwide.

It also predicted a 3% slump in rail passenger revenue on routes into central London, compared with an 8.9% rise in the six months to December.

Chief executive Keith Ludeman reportedly said he was still seeing growth on the South Eastern franchise, despite its exposure to the embattled financial sector of the City.

Go-Ahead’s aviation arm, which covers ground handling, cargo and car parking services, employs about 6,500 people at 16 airports.

After closing operations at Durham Tees Valley Airport two years ago, it no longer employs people in the North East.

Mr Ludeman, who indicated that the company was willing to listen to offers for the ailing division, said: “I think it’s at the bottom of a difficult period. We’ve restructured the business [and] we hope to survive the current downturn in that industry, and when we come out we’ll see what the options for the business are.”

Go-Ahead started life in Newcastle in the 80s and retains its registered headquarters in Grey Street, although many head office duties have been transferred to the South East.