Handling

Fiumicino Airport, from boarding to baggage: a war of appeals on ground services

Swissport excluded from the tender obtained a favourable ruling from the Regional Administrative Court. But AdR confirms the disputed outcome

by Gianni Dragoni

Vacanzieri in partenza all'aeroporto di Fiumicino. (ANSA/ TELENEWS)

5' min read

5' min read

It is not only the Ita-Lufthansa affair that holds sway in the affairs of Italian air transport. A legal battle is being fought on the runways of Fiumicino airport over ground handling services, the so-called handling, which covers assistance services ranging from passenger check-in and boarding and disembarkation, baggage to cargo, and the loading of drinks and food (catering) onto aircraft. The legal war arose following the exclusion of the most important supplier, Swissport Italia, a subsidiary of the Swiss company Swissport International, from the ranking with the three new winning operators in the tender that was drawn up by the awarding commission set up by the airport operator, Aeroporti di Roma (AdR).

Swissport hired 1,800 ex-Alitalia employees

Swissport is the world number one in airport handling. It has been operating at Fiumicino since 14 July 2022, following the purchase of the assets formerly belonging to Alitalia, from which it hired the necessary staff, 1,800 employees, with a commitment to hire a further 400 in 2025. A few months after the handover of the staff to Swissport, in November 2022 AdR issued a new tender for handling, because the seven-year period for which the services had been awarded to three operators had expired: these in addition to Swissport were Aviapartner Handling Spa and Aviation Services Spa.

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Competition to select three operators

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The tender was to be awarded to three operators, at Fiumicino there is a limitation of the number for security reasons, four contenders came forward. Surprisingly, Swissport was excluded, placed fourth according to the score assigned by the awarding commission. In its place among the 'winners' came Airport Handling, a company controlled by Dubai-based Dnata, which is part of the same group as the Emirates company, with a minority shareholder, Sea, manager of the Milan airports.

Appeal to the Lazio Regional Administrative Court

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The outcome of the tender was announced by AdR in a note on 9 October 2023. Swissport lodged an appeal with the Lazio Regional Administrative Court, contesting the application of the tender criteria and the scores awarded by the commission. In this situation of uncertainty, AdR suspended the procedure, pending a decision by the Tar, which arrived only on 29 October. In the meantime, Swissport continued to operate at Fiumicino and still does, providing handling services to, among others, Ita Airways, has a market share of over 50% at the Roman airport.

The TAR upheld one of the grounds of the appeal

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The Tar (third section, president Elena Stanizzi) rejected 14 grounds of Swissport's appeal but upheld one, which could reopen the case. According to the judgement, Swissport contested that the criminal record certificate of Aviapartner's CEO contains a conviction for plea bargaining for improper fraudulent bankruptcy, 'not the subject of a specific declaration by the operator'. The judgement is dated 12 November 2020 and the Regional Administrative Court recognised that it falls within the "relevant three-year period" preceding the tender, a period for which _ according to Swissport's objections _ the Tender Regulations essentially required the absence of convictions that could affect the directors' honourableness or, in the event of a conviction, an assessment made by AdR on the relevance or otherwise of the conviction for the purposes of assessing Aviapartner Handling's reliability and professional integrity.

The Aviapartner case: the conviction for bankruptcy of the CEO not declared

It appears that the managing director of Aviapartner Handling, whose name is not given in the judgment, had not even declared in the tender documents that he had this conviction. The judgment reads: "... it is apparent from the documents in the file that, in view of the information acquired concerning the existence of the aforementioned precedent for the managing director of Aviapartner, falling within the relevant three-year period (given that the judgment bears the date 12.11.2020, nor did the parties plead the existence of an earlier "finding" capable of causing the dies a quo to be backdated), no specific investigation was carried out by the contracting authority, either with regard to the relevance of the fact in itself, or with regard to the relevance that, for the purposes of possible exclusion from the tendering procedure, the failure to make a statement by the tenderer could have had".

Cancellation of award to Aviapartner

'It follows from the foregoing that the fourth additional plea is well-founded, in the terms set out above, and the annulment should accordingly be ordered

of the award of the tender in favour of Aviapartner Handling Spa _ the Regional Administrative Court ruled _ and of all the consequential and prior acts, starting with those concerning the procedure for verifying the fulfilment of the requirements set out in the Tender Rules. The contracting authority will have to resume the procedure from the assessment of the reliability and professional integrity of Aviapartner Handling Spa, for the purposes of the possible integration of the causes of exclusion referred to in Article 80, co. 5, lett. c) and c-bis), Legislative Decree no. 50/2016".

Decision postponed to AdR

In its final ruling, the TAR sent the ball back into AdR's court, as it established the "obligation for the contracting station to resume the proceedings from the assessment of the reliability and professional integrity of Aviapartner Handling Spa., for the purposes of the possible integration of the causes of exclusion provided for in Article 80, co. 5, letter c) and c-bis), of Legislative Decree no. 50/2016". Theoretically, AdR could have decided either to exclude Aviapartner and in that case readmit Swissport among the three winners, or to consider Aviapartner's credentials as valid, despite the CEO's previous conviction for improper fraudulent bankruptcy, and therefore to confirm the outcome of the tender already announced 13 months ago.

AdR did a review

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AdR, according to what has been learnt by Il Sole 24 Ore, has resumed the process of verifying the requirements of Aviapartner, with a preliminary investigation that has taken into account every aspect relevant to the assessment of that company's reliability and professional integrity. The airport operator notes that Aviapartner has been operating at Fiumicino for the last eight years in the provision of the same handling services and employs over one thousand employees at the airport.

Award to Aviapartner confirmed

According to what has been reported to Sole 24 Ore by authoritative sources, AdR in the last few hours has confirmed the awarding of the tender to the three winning operators according to the ranking list already drawn up, including Aviapartner, and therefore the confirmation of the exclusion of Swissport. The latter had also filed a second appeal on other grounds, which was rejected by the TAR.

The legal war continues

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In this scenario, the legal war will not end. Because Swissport will file a new appeal to the administrative justice. While for the operation of the services there should be an extension of the activity of the current operators by a few months, at least until March 2025.

What will happen to the 1,800 former Alitalia employees?

If Swissport's exclusion is confirmed, the fate of the 1,800 former Alitalia employees that the company hired two years ago will have to be decided. Theoretically, the workers should be absorbed by the operators awarded the tender who will provide services to the airlines already customers of Swissport, among which is Ita, Fiumicino's main company. According to airport sources it would be the new entrant Aviation Handling that would be the real contender for the service provider contract at Ita and thus the competitor that has moved to throw Swissport out of Fiumicino. Aviation Handling has already declared that it will invest more than 20 million euros in ground services and that it will absorb 1,800 employees at Fiumicino: the figures coincide with Swissport's former Alitalia staff. It remains to be seen what the Tar or the Council of State will decide.

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  • Gianni Dragoni

    Gianni DragoniCaporedattore, inviato

    Luogo: Roma

    Lingue parlate: italiano, inglese, francese

    Argomenti: economia, finanza, industria aerospazio, difesa, industria ferroviaria, trasporto aereo, grandi aziende pubbliche, privatizzazioni, bilanci società di calcio, stipendi manager, governance società quotate, conflitti d'interesse

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