UK-based Menzies Aviation is set to acquire the majority stake in AJAS (All Jamaican Airline Services) Limited in a transaction which will position it as part of the multi-billion-dollar Agility Logistics Group. Menzies Aviation is an aviation services business providing ground handling, cargo handling, cargo forwarding and into-plane (ITP) fuelling.

The transaction, which is set to close in the coming weeks following regulatory approvals, will see the Jamaican ground handling company renamed Menzies AJAS Limited. AJAS handles 90 per cent of all aviation cargo entering and leaving Jamaica and 50 to 55 per cent of passenger services at the Norman Manley International Airport and the Sangster International Airport.

“Partnering with Menzies will add tremendous value to our business, which has gone from strength to strength over the past 82 years. We have a shared vision with Menzies and are aligned on the value of our employees and how we look after them, which in turn maximises the service they provide as well as the return to our stakeholders,” said AJAS chairman and majority shareholder Howard Mitchell in a press release.

Mitchell confirmed that a minority interest will be retained in the business which currently trades under the name AJAS Aviation Services. There will also be local director representation on the board which currently consists of managing director Barry Byrne, Mark Kerr-Jarrett, Godfrey Dyer, Judith Hanson, Christopher Bond and Erin Mitchell. Tania Waldron-Gooden, Christopher Bovell and Oliver Holmes are listed on Companies Office of Jamaica documents as directors of AJAS. AJAS was acquired by a consortium of investors including Mitchell, Barnett Limited and Raymond Chang Limited in mid-2013.

AJAS provides passenger, ramp, load control & flight operations along with cargo, maintenance, support and security. The company had made its intention known about listing via an initial public offering on the Jamaica Stock Exchange at a Mayberry Investments forum in October 2019. However, that never materialised as the COVID-19 pandemic decimated the air transportation industry in March 2020.

“We were ready to go public, got all the approvals and the week before we were to launch, COVID-19 shut down the country. We had everything done, had the prospectus ready and regulatory approval,” Mitchell added, in a call with the Jamaica Observer.

Despite being left in the wilderness for almost two years, as described by Mitchell, the business is currently about one per cent above 2019 levels which was the company’s best performing year on record. This coincides with the double-digit growth in air traffic numbers at Sangster International Airport with 4.36 million passengers passing through the airport in 2022.

When asked why not return to the local equity markets, especially with the rebound in equity raises, Mitchell responded, “We have two ways to survive. I could have returned to the market and raise capital and tackle it myself or do what we’ve done which is link with the largest global aviation services player. The route we’ve chosen, in our opinion, is the fastest way to modernisation of aviation ground handling services for us.”

Menzies was publicly listed on the London Stock Exchange before being purchased in August 2022 by Kuwait Agility Public Warehousing Company KSCP in August 2022 for £763 million. Menzies provides critical ground, fuel and air cargo services to more than 250 airports in 58 countries with over 35,000 members of staff.

“We have provided ground services in the Caribbean for over 20 years, and we are excited to be expanding our footprint to Jamaica at a time when its aviation industry is experiencing a post COVID-19 pandemic recovery. The Menzies AJAS combination brings together local knowledge, relationships and expertise, which will strengthen our position in this market. We look forward to working with the AJAS team to grow the business under the Menzies brand,” said Menzies Aviation Executive Vice-President for the Americas John Redmon, in a press release.

Sangster International Airport is set to have its runway expanded from 2,662 metres to 3,060 metres which will allow for larger aircraft to land at the airport and support the growing interest by numerous airlines to the country.

Both Sangster International Airport and Norman Manley International Airport are managed by Grupo Aeropuerto del Pacifico (Pacific Airport Group) with the latter processing 1.56 million passengers in 2022.

When asked about possibly going to the latest international airport addition in St Mary, Mitchell said, “The Ian Fleming International Airport is not at the level yet where they would need a standalone, permanent, commercial air services facility. The airline that goes in there does its own aviation services. It wouldn’t be commercially justifiable for us to setup a station there.”

AJAS currently employs almost 600 staff members with the rebranding and integration of AJAS into the Menzies global network to commence in February. The company was once owned by Lascelles deMercado & Company Limited before Gruppo Campari acquired the majority interest of the conglomerate in 2013 excluding its non-spirits businesses.

“We see this move with Menzies as our elevator for Jamaica. We are positioning ourselves for when the physical infrastructure is modernised, we are there with the technology, human resources, best practices services and security to deal with the growth in our tourism and cargo and in our logistics. Because they are in 256 airports, handle over 100 major airlines and moving into Latin America, they will also make it more attractive for more airlines to come to Jamaica and bring more people and more goods,” Mitchell closed.