Toll Holdings losses raise threat to airport jobs

Toll Dnata, the airport services offshoot of Toll Holdings, ditched a large contract with Virgin Australia after sustaining "significant losses" on the deal. The contract covered baggage handling, passenger check-in and other customer-service roles for Virgin's international flights.

Toll Holdings revealed its airport services provider sank into the red in the year to June largely because of the significant losses on the Virgin contract. The company said it expects a turnaround in Toll Dnata's performance in the new financial year once the Virgin contract ends.

Yes. The end of the Virgin contract raises the possibility of job losses at Toll Dnata. The airport services business has around a 1,200-strong workforce in Australia, and the contract termination could affect staffing levels.

Under the Virgin contract, Toll Dnata handled baggage handling, check-in and other customer-service roles for Virgin's international flights, including short-haul services to New Zealand and the Pacific Islands at Sydney, Melbourne and Brisbane airports.

Toll Dnata is a joint venture between Australian logistics group Toll Holdings and Dubai's Dnata Group.

Yes. Toll Dnata also incurred costs this year from the construction of new facilities in Sydney and Melbourne, which contributed to its financial performance.

Toll Dnata recently won a major deal with Air New Zealand to provide passenger and ramp-handling services. The article also notes that Air New Zealand is Virgin Australia's largest shareholder.

Toll Holdings said it expected a turnaround in Toll Dnata's performance in the new financial year once the Virgin contract ends next month. Beyond that statement, Toll Holdings declined to comment further.