Aircraft Services: 35 Jobs To Be Made Redundant
Next month 35 people will be made redundant from Aircraft Services Bermuda Ltd, a subsidiary of Bermuda Aviation Services Ltd. [BAS].
In a filing with the Bermuda Stock Exchange, BAS announced that effective August 31, 2011, its subsidiary Aircraft Services Bermuda Ltd. will close the following segments: Commercial Aircraft Ramp Operations, Passenger & Check-in Services and Aircraft Technical Services.
The statement cited the local economy, financial pressure exerted by commercial airlines as they attempt to contain their costs and the impacts of competition as reasons for the closure.
BAS released a market announcement affecting the wholly owned subsidiary, Aircraft Services Bermuda Ltd. The notice reads: “Having served Bermuda at the L.F. Wade International Airport for more than 60 years, Bermuda Aviation Services Ltd.has announced that effective August 31, 2011, its subsidiary Aircraft Services Bermuda Ltd., will make operational closures in the following segments of its airport operations: Commercial Aircraft Ramp Operations, Passenger and Check-in Services and Aircraft Technical Services. ASB is negotiating the sale of its equipment related to these discontinued business segments.
“After carefully considering the local economy, the financial pressure exerted by commercial airlines as they attempt to contain their costs and most significantly the impacts of competition, it was felt that this was the opportune time to exit from these business segments.
“These are business segments that ASB operated on a thin or sub marginal basis as it was a broader corporate objective to keep Bermudians gainfully employed. Whilst we are appreciative of Government’s intent to encourage competition in the aviation handling service sector, BAS has always held the view that Bermuda, as a jurisdiction, is too small for multiple service providers. Thirty-five positions will be made redundant as a consequence of these segment closures. ”
BAS Chairman, Michael Darling said, “It has been an emotional and difficult decision as these segments of ASB’s operations have been a part of the legacy upon which BAS has grown to the diversified group of companies that it is today. BAS was born in aviation.”
“It is always challenging when one has to separate personal attachment to reach a pragmatic business decision and this is no exception. We are very cognizant and appreciative of the contribution of countless men and women who have been a part of ASB over the last 60 years.”
ASB will still continue operate its Cargo Customer Service division providing cargo clearance and handling services, its Garage Service providing internal and external vehicular maintenance and the Private Jet Base.
Recently renovated and rebranded as the LOM Executive Jet Facility through a collaborative effort with the LOM Group, the Private Jet Base will become the primary focus of ASB’s on-going operation, and serves approximately three thousand flights per year.
Ken Joaquin, President and Chief Executive of the company, stated “It is always our intention to position our company where it affords maximum shareholder value for those that invest in us. This strategic initiative should assist us in achieving this goal”.
Sad to hear this…but I am sure that these individuals will be employed by the new service provider,if not I would question why.
Bermuda no longer maximizes their shareholder value. That’s why I’m loosing my job too!!!!!
Were these union jobs?
Chart,
These are union jobs, what is BIU going to do now as their membership dwindles. They need a wake up call and realize this is real and stop trying to bully their way throughout the island. Lets see if they can support their redundant membership.
nothing the union can do if someone wants to close their doors
The other service provider don’t have to take them, why, because they are unionized. Furthermore after August 31st the summer season is over and all the air carriers move to their winter schedule so the current service provider will take care of their current employees first.
They are giving them the option of going there however they are being offered far less $ and no benifits. :/
Umm, you can’t employ people and give no benefits. It’s against the law.
Not really. Depends on hours worked. If they are casual (part time) then you can discount benefits. They consider that the person has a full time job elsewhere.
no shhh but neither is it illegal to offer substandard benefits to full-time workers.
Horrifying news.
I’d ask BAS not to be so hasty about this. I am available at the moment and if Government would agree to pay me perhaps ten grand a month as consultant, I could do up a report and issue some recommendations. Hey, I already live in the east end so I wouldn’t need a GP car really. But since there would be one going, I’ll have it anyway. Any possibility of one of the convertibles?
I can start immediately. Well, after Cup Match! Well the Tuesday – I’ll have a hangover on the Monday from Non Mariners. I’m a Bermujan too so I’m spashul and entitled.
I also live in the east end ,so I could be your assistant !!!and I have my own transportation , so we could make a good team .
I also might have a hangover on the said day !!! but I am sure it will be ok.
Wow, they must be pissed off. The redundant payments on 35 staff must be chunky.
The international world is slowly letting go of Bermuda. And the PLP have no plan to get us back on track. We are living on Borrowed Time!!!!!
We are living on borrowed time !!!and to think we Bermudians that have worked hard to get what little we have…will be taken away from us because of the present fools that represent us !!!!!!!!! Paula Cox has done this to us…and we let her get away with it !!!! we need to demand that we have no confidence in her leadership..we thought Brown was bad…Cox has not done anything for the people of BERMUDA SINCE SHE TOOK OVER FROM THE WORST PREMIER THIS ISLAND HAS EVER SEEN !!!!!!!!!!! to think what she paying her consultans is amazing !!!but the government of the day will have it’s way….how sad is that ?
Is this another Ewart after-effect?
Well, you may recall under his leadership another airport operations company was set up and one or two of the new carriers he brought in went to them. It seems they will now have to take over all this (or leave it to the airlines themselves). I wonder if by any chance EB would have a shareholding in this company?
“Borrowed Time!!!!!”………….Lord, the irony in that statement.
Got some wild parsley if you want some……ann spice leaves ann nastersiums…….
You casting nastersiums again Terry?
Does this mean we carry our bags to and from the airplane?
Absolutely. You can carry all the bags you want except Cedar, Ganja, and….(dirt bags excluded)…..
Cedar, only if you are staying at Cedar Hurst. As for your rood/rude comment about Nastersiums well eat your words.
Nastersium leaves I have eaten since I was about 5 years old. Next time you have a TLT or a BLT leave out the “L” and wash a few nastersium leafs and slip them into your sandwich. Years ago, in a poor Bermuda that was our “L” and it was FREE. Detz rite………and the flowers are edible, tastey ann warry warry good for kontstpaysheaon.
According to the ridiculously large PLP propaganda on this site that doesn’t go away, they understand and everything is cool.
Could one of you experts please explain how it is that when private business fails its the Government ‘s fault but when they succeed its due to their own efforts? This dinosaur of a company cannot compete with the leaner, technologically advanced, hungrier, service oriented businesses now in play. They admitted that. And yes, this is a “Ewart after effect”; its called competition. Its the same thing that brought you cheaper flights to New York and now to Toronto and Atlanta.Innovate or die; a simple capitalist rule. They say Bermuda’s too small for competition in their area….how arrogant is that?! That’s why Jim Butterfield can say today that his prices ain’t coming down no matter what some Commission says: arrogance plus no competition = old Bermuda.
Hey! don’t mess with my Bottom Line. IF you come after me for more taxes to pay off the debt i am going to shave off some of my staff. Just mess with Butterfield one more time.
HMM Good point on the blaming the Govt but they sure dont help much either. So why then if competition is King didn’t Dr. Cash not help to introduce competition in the Cement Importation business? Guess it was easier to just steal that company and give it to the usual suspects.
Yes. But of course you do know that those new flights brought in to ‘compete’ do not pay any landing fees. Well, of course you knew that, so it really isn’t fair competition then.
Have we forgotten how this same Government appropriated the cement business from the same Jim Butterfield? His attitude is understandable!
Sorry, but the divine right of kings ended with Charles I; since then its fair game, even for Jim Butterfield. Their kind of thinking would say that this population of 65,000 doesn’t need half the dentists we have. Well try and get an appointment with one for tomorrow. Let the market decide who survives, not some legislated protectionist racket that defines who gets what slices of the pie. That’s exactly why some people are furious out here….we just can’t get a foot in the door and when we do loudmouths conjure up Zimbabwe. Its called competition.
lol having a lease condition forced upon you, andt hen when you exit the lease the condition is removed and open lease given to a close friend of the man in charge of a country is hardly called competition
Right on Scott,
Thats bull%hit Hmmmmmmmmm and you know it. Tell me who/whom are the owners/directors of BAS/ASB and BULL/Sheep………..Are they Unionised?….Hmmmmm.
Take your medication.
great now we have to deal with pissed off baggage handlers and customs for the next mounth.
but in all seriousness my heart goes out to them. hope they find employment sooner then later.
P.L.P. HAVE SMALL BRAINS !!!!!!!!!THEY HAVE NO BRAINS …………..
Bermuda is in a mess……….. and we need to get rid of the likes of PAULA COX !!!!she needs to resign, thank God for tylenol…why the hell are we Bermudians allowing this to happen ????
And Jim still has to pay his ‘Sheep-’………
Hmmmm: You don’t get it. When you have a small limited market with high costs, increasing competition doesn’t always help. It just means that you have two struggling companies trying to find a way to cover their costs.
You are overlooking the fact that the competition in this case has also been struggling, is in a public dispute with the union, and has recently been laying off people.
Competition here has disruptively maintained the status quo.
It would be great if these soon to be displaced workers made time to attend the Town Hall meeting @ The Warwick Workmans Club . Madamn Premier should be able to give them some encouraging news on the economy . Let them know ,all is not lost ,Just their JOBS , thats all .
And on that note, aren’t these pop-up adverts on Bernews annoying?
Rockfish we all no when the PLP and there cronies hijacked the cement business from Jim how that effected the price of cement. It went up by 20 percent! How did that work out for the consumer? When is Denis moving those Silos anyway?
Ha ha. Good one 26…
they had a good run over 60 yrs of prosperity without competition they could pay employees and still turn fat profits. Bermuda has changed folks, for better or for worse. Lean profits mean loss of jobs…..the old money ain’t gonna keep you employed if they’re feeling the heat, they gonna get out of the kitchen and happily retire in Nova Scotia
Speaking of layoffs and the union,I understand that KFC has decided to delist from the Bermuda Stock Exchange,and to become a private company once again.As I understand it the staff at KFC are all union members.Looking into my glass ball..I see a future sale of KFC…new owner..new saff..no union….