Edinburgh aviation giant Menzies ramps up presence in 'exciting growth market'

The group has agreed to acquire a majority 51 per cent stake in Interexpresso Costa Rica, which will see the Scots firm’s footprint expand in Central America, described as “an exciting growth market”.

Interexpresso is an aviation services provider headquartered in Costa Rica. Its core business relates to cargo handling and aviation security services, primarily consisting of cargo document handling, cargo security screening and aircraft access control.

The firm’s operations are based in San Jose, Costa Rica, with additional facilities in Guatemala and El Salvador.

Menzies said its initial focus will be on developing and growing Interexpresso's core cargo and security offerings across the region with the potential to expand into additional air cargo handling and ground handling services.

The joint venture has added three new countries to Menzies' portfolio.

Meanwhile, the group - one of Scotland’s longest established companies - has secured new business with Virgin Australia. From mid-October, the firm will provide ground services at Darwin, Cairns and Queenstown and will also provide air cargo services at Darwin.

The contract wins, which followed a competitive tender process, add to existing business retained at Sydney, Melbourne, Kargoorlie, Perth, Brisbane, Cairns and Gold Coast airports.

Overall, the contracts will see Menzies handle some 8,000 flights and about 6,500 tonnes of cargo per annum at a total of ten locations for Virgin Australia.

Menzies chairman and chief executive Philipp Joeinig said: “I am pleased to announce our expansion in the Central American region. We have found a knowledgeable partner in Interexpresso and, working together, we will be able to open doors in new, attractive, higher margin and emerging markets in the region.

"In addition, our contract wins in Oceania demonstrate our reputation in that region for providing excellent service and I look forward to developing our relationship with Virgin Australia as we move forward."

Shore Capital analyst Robin Speakman noted: “Menzies is poised to recover strongly from the pandemic, in our view, as a leader in its aviation services specialisms.”

John Menzies started out in 1833 when its eponymous founder opened a bookshop at 61 Princes Street, Edinburgh which was to become the only wholesale bookseller north of the Border.

The newspaper and magazine distribution business was spun out in 2018, creating Menzies Distribution, and leaving the rest of the firm to focus on providing aviation services.

The group now operates at more than 200 airports in 35 countries, supported by a global team of 23,000 people.

Last month, Menzies said it was gearing up for further growth stateside after expanding its cargo facilities at Los Angeles International Airport.

The group has expanded its cargo provision at the world’s third busiest airport by 40 per cent with the addition of a new warehouse.

The new off-airport facility will handle import cargo while an existing on-site operation will continue to handle predominantly exports through the vast airport. Menzies also has a third warehouse facility, which is off-airport and operated by Air Menzies International. The three facilities collectively have the capacity to handle more than 130,000 tonnes each year.

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