THE boss of a Prestwick Airport-based ground handling firm has accused the Scottish Government of putting his company "out of business" after his lease at the hub was suddenly axed.
In a furious letter to MSPs, Bert Greer, managing director of Greer Aviation said the "devastating and unwarranted state intervention" was putting jobs at risk and may violate competition laws.
It comes after Greer were informed by the state-owned airport's board on October 29 that their lease would be terminated with effect from January 31 2015.
Mr Greer, whose firm has been at Prestwick since 2001, said the decision had come "without notice or consultation".
Mr Greer has now raised concerns by letter with all members of the Scottish Parliament's Infrastructure and Capital Investment Committee, local MSPs and the convener and deputy convener of the Scottish Parliament's Audit Committee.
He writes: "At a stroke, the owners of Prestwick Airport have put Greer Aviation out of business; with our business interests, to all intents and purposes, forcibly nationalised. I am dismayed at the decision and the absence of any communication from Transport Scotland officials accountable for what happens at Prestwick.
"This devastating and unwarranted state intervention in a functioning competitive marketplace not only deprives me of my business, and my locally-based employees of their livelihoods, but also puts at risk countless more SMEs and people that depend on the business we bring to Prestwick, and the wider area, through many years of experience and hard work."
Greer Aviation has a staff of ten at Prestwick, its only base. It provides services such as refuelling for commercial, military and private aircraft, ground transport and weather briefings for operating crew. Its customers include the US Air Force and the Ministry of Defence.
The termination of Greer Aviation's lease also comes at a time when business is booming, with turnover up 79 per cent year on year.
It is understood that Greer's only other commercial rival at the airport, US-based ground handling firm Landmark Aviation, have also been informed that their lease at Prestwick is being terminated.
Landmark Aviation is now in the process of transferring its contracts - said to constitute "a large number of customers and a significant proportion of Prestwick's revenue" - to a rival airport.
The move leaves behind only Prestwick's own in-house ground handling team available to take on new contracts.
Mr Greer added: "It is anti-competitive and an abuse of those property rights for the airport company to terminate the leases of two competitor businesses, in order for the owners to take over that business and consequently, to benefit from a monopoly position in ground-handling services."
The government bought the loss-making Prestwick Airport for £1 last year after its previous owner failed to find a commercial buyer. Ministers have invested £25 million so far in improvements and running costs, but have vowed to return it to profitability and sell it back to the private sector.
A Scottish Government spokeswoman said: "While this is an operational matter for the airport, we fully expect fixed base operations and ground handling services will continue to form part of the airport's portfolio of activities.
"Any discussions will comply with all legal obligations, including TUPE arrangements."
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