Go-Ahead loses airports baggage

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Go-Ahead is best known for making large amounts of money and paying attractive dividends from running the highly subsidised London General and London Central bus companies in the capital. It also operates the lucrative commuter train franchises Southeastern and Southern Railways, and London Midland into Euston.

However, group profits have for years been held back by its ground handling and cargo operations at Heathrow, Gatwick and Stansted and a host of other UK airports

In recent years it has been forced into tens of millions of pounds of writedowns of a notoriously low-margin business which is regularly buffeted by the vagaries of airline finances and the super cyclicality of the air travel business.

Today the businesses were sold to Dnata, the Dubai-based international airport ground handling group, and its French rival Servisair.

Go-Ahead chief executive Keith Ludeman, who has been trying to get rid of the businesses since taking over three years ago, said: "We are pleased to be selling these operations." Dnata is paying £15 million and Servisair a nominal sum. That cash inflow, however, will be wiped out by residual liabilities and ongoing future losses at the businesses.

The businesses are carried in Go-Ahead's books at £20 million, meaning the group's next accounts will have to take a £20 million write-off.