{"id":276641,"date":"2026-09-03T11:52:09","date_gmt":"2026-09-03T11:52:09","guid":{"rendered":"https:\/\/www.europesays.com\/iran\/276641\/"},"modified":"2026-09-03T11:52:09","modified_gmt":"2026-09-03T11:52:09","slug":"airport-ground-handler-menzies-considers-expansion-in-gulf-syria-and-us-despite-war-uncertainty","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/iran\/276641\/","title":{"rendered":"Airport ground handler Menzies considers expansion in Gulf, Syria and US despite war uncertainty"},"content":{"rendered":"

Airport ground handler Menzies Aviation<\/a> is planning expansion in the Gulf and US, while the Syrian market is of interest, as it aims to sustain its \u201caggressive\u201d growth despite Iran war-related travel disruptions<\/a> and higher costs.<\/p>\n

The aviation services company, which has a regional office in Dubai, is keen to serve airports in the UAE<\/a> and Saudi Arabia, which has a \u201cvery fast-growing, large, dynamic\u201d market, chief executive Hassan El-Houry told The National. <\/p>\n

Kuwait is also a potential future market, after Menzies concluded operations at Kuwait International Airport when its contract expired in January. It already operates in Iraq, Jordan and Egypt.<\/p>\n

\u201cWe want to be a part of the incredible investment that’s going into aviation and aviation infrastructure in the Gulf,\u201d he said. \u201cWe take a long-term view on all of our investments.\u201d <\/p>\n

Menzies is also considering opportunities in Syria as the country reconnects with the global travel and financial markets. <\/p>\n

\u201cWe need to look at the economics and legalities of the market, but overall interested,\u201d he said. \u201cWe look at every opportunity objectively, commercially and operationally, not politically.\u201d <\/p>\n

Syria’s civil aviation sector may attract new foreign investment after the US removed the country from its list of state sponsors of terrorism last month, ending a 47-year designation. <\/p>\n

\"\"<\/p>\n

Syrians welcome end of US terrorism designation<\/p>\n

Menzies also aims to grow further in the US, where it has doubled its footprint in the last two years to serve 108 airports. <\/p>\n

\u201cWe see the US as a key market. We will continue to growth there,\u201d Mr El-Houry said. This follows its $305 million acquisition of Texas-based G2 Secure Staff that was completed in August 2025. <\/p>\n

London-based Menzies, part of Kuwait’s Agility Global, provides ground handling, aircraft fuelling, cargo and lounge services at nearly 350 airports in 65 countries, including at London Heathrow and the world\u2019s busiest hub, Hartsfield-Jackson Atlanta International Airport.<\/p>\n

The company recorded a 31 per cent year-on-year increase in second-quarter revenue to $908 million, driven by contribution from G2, new contract wins, better yield and \u201cresilient\u201d operations despite geopolitical disruptions in the Middle East, Agility said in an August statement. <\/p>\n

\u201cI am navigating the company in a time when there is significant disruption and uncertainty in the aviation sector,\u201d Mr El-Houry said. \u201cBut at the same time, our company has been sustainably growing quite aggressively \u2026 and will continue to grow aggressively year-on-year.\u201d <\/p>\n

Before joining Menzies, Mr El-Houry was chief executive of Kuwait’s National Aviation Services (NAS) and played a major role in Agility\u2019s acquisition of Menzies in 2022 and in Menzies’ integration with NAS. He became executive chairman of Menzies in 2022 before being appointed its chief executive in July.<\/p>\n

Middle East growth<\/p>\n

\u201cThe Middle East broadly is a very attractive market for us,\u201d Mr El-Houry said, pointing to airlines such as Emirates, Etihad Airways, Qatar Airways, Saudia and new start-up Riyadh Air. \u201cWe want to grow in the Middle East if we can. The problem is that there’s high barriers to entry.\u201d <\/p>\n

Emirates Group-owned dnata, which provides ground handling, travel, catering, retail and cargo services, has extensive operations in the UAE. <\/p>\n

The six-month Iran war is unlikely to hamper Menzies’ growth ambitions in the region. Mr El-Houry pointed to the Gulf airlines’ \u201cincredible\u201d recovery despite operational challenges as they restore their route networks to about 90 per cent of prewar levels, thanks to the strength of their business models and management. <\/p>\n

\"\"<\/p>\n

Gulf airlines win on service, not crisis politics<\/p>\n

\u201cWhen you think about it, there are missiles and drones flying around, airspaces closing and opening literally on an hour-by-hour basis, your biggest cost \u2013 fuel \u2013 has skyrocketed, passenger confidence probably plummeted and still you’re flying. That’s incredible,\u201d he said. <\/p>\n

The war has exerted push-pull forces on the aviation industry. While travel demand is high, the cost of jet fuel has soared, making planning a tough task for airlines.<\/p>\n

\u201cThe challenge that the aviation industry has is how to navigate through this incredible uncertainty: there’s very robust demand but very unpredictable costs,\u201d he said. <\/p>\n

The global aviation industry will record a sharp decline in profit this year, raking in only about half the collective earnings previously predicted, Iata said in its June forecast.<\/p>\n

In response, cost-conscious airlines are cutting unprofitable routes, renegotiating supplier contracts and demanding more efficiency from service providers, Mr El-Houry said.<\/p>\n

\u201cI’m seeing airlines become a lot more aggressive and assertive in cutting costs,\u201d he said. \u201cWe’re seeing airlines revisiting contracts and pushing for cost reductions where possible. We are seeing airlines become a lot more scientific and innovative in how they look at the resources we allocate to serve them.\u201d<\/p>\n

SAF ambitions face tailwinds<\/p>\n

Global jet fuel shortages and price spikes due to the Iran war are making the aviation industry’s transition to cleaner fuels even tougher. Airlines are shifting their focus from long-term decarbonisation to the immediate need for securing enough conventional fuel supplies to keep flying. <\/p>\n

They are focused on surviving and trying to \u201cmake ends meet\u201d rather than long-term investments in sustainable aviation fuels (SAF), Mr El-Houry said. <\/p>\n

At the same time, current SAF production remains far below demand. \u201cYou need not double, or triple, you need 20x the number of facilities and staff in order for SAF to become a viable alternative to aviation fuel,\u201d he said. <\/p>\n

SAF production is expected to reach around 2.4 million tonnes in 2026, representing just 0.8 per cent of aviation fuel use, at a cost to airlines of $4.3 billion, Iata said. Airlines in 2020 pledged to reach net-zero by 2050, with SAF comprising 65 per cent of the carbon reductions needed to meet that target.<\/p>\n

Crisis planning<\/p>\n

Menzies is constantly reviewing the markets in which it operates, Mr El-Houry said.<\/p>\n

Its operations in Africa are hit harder than those in North America due to the crisis, while Australia is affected more than Europe as many Gulf airlines flew cargo to Australia and New Zealand but many of these flights have now been reduced significantly, he said. <\/p>\n

\u201cThere are some markets that are hit harder than others, and those markets would be subject to a higher level of scrutiny, but as it stands today, I can’t think of a single airport where we’re going to pull out because of the crisis,\u201d he said.<\/p>\n

Demand for aviation services such as ground handling and lounges continues to grow. \u201cGround handling is really the backbone of our industry,\u201d he said, noting the need to check in passengers, clean aircraft, load luggage and pushback of aircraft. <\/p>\n

However, air cargo demand is \u201cvolatile\u201d mainly due to the US suspending a \u201cde minimis\u201d exemption that allowed low-value commercial shipments to be imported into the country without facing tariffs, he said. <\/p>\n

\u201cWe’re planning as though this crisis will continue for the foreseeable future,\u201d he said. \u201cEvery leader needs to have a certain level of insecurity that’s healthy, and plan for the worst and hope for the best. And the truth will most likely end up somewhere in the middle.\u201d<\/p>\n

The company is also continuing to expand its workforce of 65,000 employees. \u201cWe’re certainly not letting go of people. We’re hiring, we’re always looking to hire, retain and train the best talent in aviation,\u201d he said. \u201cWe’re open for business.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Airport ground handler Menzies Aviation is planning expansion in the Gulf and US, while the Syrian market is…\n","protected":false},"author":2,"featured_media":276642,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[30],"tags":[2622,2237,1140,154,45,274,273,95,153],"class_list":["post-276641","post","type-post","status-publish","format-standard","has-post-thumbnail","category-syria","tag-airlines","tag-airports","tag-business-team","tag-energy","tag-gcc","tag-standard","tag-story","tag-syria","tag-us"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@iran\/117206971172660915","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/276641","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/comments?post=276641"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/276641\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media\/276642"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media?parent=276641"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/categories?post=276641"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/tags?post=276641"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}