British Airways Awards Three-Year Facilities Services Contract to EMCOR Group UK Subsidiary EMCOR Unit Builds on 11-Year Relationship with Airline
NORWALK, CT – April 24, 2003 – EMCOR Group, (NYSE: EME) announced today that British Airways has awarded the company's UK facilities services operation a three-year contract valued at $40 million per year to be the airline's single-source provider of facilities management services for the majority of British Airway's UK property portfolio. The new agreement continues an 11-year relationship with British Airways that was the airline's first outsourcing of facilities management in the UK.
EMCOR Facilities Services UK is providing comprehensive facilities management services including mechanical and electrical maintenance, landscaping, ground maintenance, lounge management, internal and external cleaning, and furniture management. The contract, which took effect April 1, expands EMCOR's previous service scope to cover approximately 7.5 million square feet of British Airway's facilities in 100 separate buildings, including its Waterside Headquarters, as well as Heathrow and Gatwick Airports.
The contract is part of the airline's Facilities Management 2003 initiative to streamline outsourced services and reduce costs. It combines the scope of 14 previous contracts and is expected to provide British Airways with annual savings in excess of $4.5 million.
Frank T. MacInnis, chairman and chief executive of EMCOR Group, comments, "We are very pleased for this opportunity to build on a long-term business partnership that has proved successful for both our companies. British Airways is a premier international air carrier that exemplifies resourcefulness in a complex and challenging economic and social environment."
Mr. MacInnis continues, "It is always a privilege when we can offer services and expertise that are considered integral to a business partner's strategy. It speaks to the level of trust and commitment that EMCOR and British Airways share in pursuing and achieving clearly defined goals and objectives."
Phil Hogg, head of property and T5 at British Airways says, "We are delighted to be growing our relationship with EMCOR. They have demonstrated a significant understanding of our support services needs and responded, through an exhaustive selection process, with solutions which will help us achieve some of our most critical business objectives. They are committed to the facilities business and have the depth of resources to understand and respond to our changing needs."
Mr. MacInnis concludes, "The EMCOR UK practice of serving the market with a balance of specialty construction and outsourced facilities services has provided the basis for a strong and growing business model for EMCOR in the U.S. It has also enabled EMCOR to develop lasting and mutually beneficial partnerships with British Airways and others as we pursue our strategy of growth through market and geographic diversity. We look forward to a continuing business partnership with British Airways that is as dynamic as it is enduring."
EMCOR Group is a worldwide leader in mechanical and electrical construction services and facilities services. This press release and other press releases may be viewed at the company's Web site at www.emcorgroup.com.
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