The cargo firm John Menzies has announced that it will stop operations at four of the UK’s airports at the end of August. The company’s aviation arm, Menzies Aviation, will stop working at Birmingham, Manchester, Glasgow and East Midlands airports.
Instead, the Edinburgh-based firm, which is 179 years old, will now focus its operations on Heathrow Airport as well as running smaller operations at Belfast and Aberdeen.
The decision to stop operations at four airports has been taken in order to return the company to profitability once more. It is thought that the restructuring will lead to a one-off cost of £3 million.
A large section of John Menzies is involved in newspaper distribution, but in March of this year its aviation service became its most profitable sector. Last year the aviation arm saw profits of £32.3 million compared to £28.8 million for newspapers.
There has been a drop in demand for the transportation of goods by plane, and that has combined with a lack of consumer demand which has led to the decision to restructure the company.
According to a statement from the group, the restructuring will “result in an exceptional write off of up to £3 million” and the work is “expected to be completed by the end of August 2012”.
There are fears that the move could lead to some job losses, and although the firm has said that this may be the case, the number of positions that may go is thought to be very small.