Dnata, the airport ground services and travel industry division of Emirates Group, is assessing global acquisition opportunities for its ground-handling business despite the downturn in order to expand its global footprint, according to the company's top executive.
"We do have one or two opportunities we are considering at the moment. But I cannot talk about them yet. We are always on the outlook for opportunities," Gary Chapman, President Group Services and Dnata, Emirates Group, told Emirates Business.
Asked if a deal would materialise sometime this year, Chapman said: "Right now we are looking out for them. Whether we will proceed with them, remains to be seen. We will decide that after we do our due diligence. But there are one or two interesting opportunities in the picture."
Having provided technical support services to airlines at Dubai International Airport for 50 years, Dnata has been rapidly expanding its ground-handling services globally. Its first international ground handling operation was in Pakistan in 1993. Dnata is now represented in seven countries and 18 international airports. "The thing about ground handling is it is a low margin business. Airlines at the moment are cutting back due to the global slowdown, while cargo is down 20 to 25 per cent. So there is a lot of damage out there as well," said Chapman, adding that it puts pressure on ground handlers. "However, we will continue to look at very selective opportunities."
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