WFS has purchased its 60% stakeholding from three of BARC's founders; Bryan Bullman, Jim Dunwoody and Malcolm Jackson. Terms of the acquisition have not been disclosed. The remaining 40% of shares will continue to be held by British Airways World Cargo (BAWC).
Olivier Bijaoui, Executive Chairman, President & CEO of WFS, stated: 'The UK and Ireland is a key market for WFS. Since 2001, we have increased our operations at London Heathrow to over 250,000 square feet and, in 2007, we established a presence at Gatwick and Stansted airports. British Airways Regional Cargo is an excellent strategic fit with the WFS business in the UK and Ireland with very little overlap and gives us the additional presence we have been looking for to grow with both existing and new airline customers.
'BARC is a well-established and profitable business with an experienced team of cargo professionals. This investment also extends our business relationship with British Airways World Cargo and this is another attractive aspect of this development.'
In the UK and Ireland, BARC operates over 260,000 square feet of cargo handling facilities in Belfast, Birmingham, Bristol, Dublin, East Midlands, Glasgow, Leeds-Bradford, London Heathrow, Manchester, Norwich and Shannon. Employing 246 staff, it provides cargo handling for British Airways World Cargo and other major airlines, including American Airlines, Singapore Airlines, Northwest Airlines, Air India and GB Airways. BARC generates annual revenues of some '28 million and handles 110,000 tons of cargo per annum.
Patrick Roberts, Vice President, UK & Ireland for WFS, added: 'By combining the WFS and BARC cargo handling networks, we are creating a unique spread of operations across the UK and Ireland. This increased coverage will significantly increase the appeal of WFS as a ground handler in this market and enable us to provide additional services to both our current and future airline customers.'
All of the BARC cargo handling operations will be branded as Worldwide Flight Services under the deal. The sales activities currently undertaken by BARC for British Airways in the UK will continue under the current identity and as a dedicated division with its own management.
BARC's history dates back to 1979 when Dunwoody Airline Services (DAS) was formed to provide British Airways with a cargo reception facility at East Midlands Airport. As the relationship between the two companies grew, Dunwoody also developed a successful wholesale cargo product for the airline in the UK. In 1989, British Airways World Cargo acquired a 40% shareholding in Dunwoody, which prompted the opening of further locations in the UK and southern Ireland.
In 2002, BAWC outsourced its Belfast, Birmingham, Glasgow and Manchester operations to Dunwoody and within a year, the company had adopted the new identity of British Airways Regional Cargo.
Worldwide Flight Services (WFS) is the world's largest cargo handling organization with annual group revenues of over '611 million. Its 12,000 employees at 115 airports worldwide handle 3.5 million tons of cargo a year for more than 300 airline customers.
