Government grants two-year extension for airport ground handling licences
The Portugal Government has approved a legal framework allowing ground handling licences at the country's three main airports to be extended for up to two years beyond their current expiry date. The measure, enacted through Decree-Law No. 197/2026 on 1 October, permits licences currently held by Menzies Aviation to continue at Lisboa, Porto and Faro airports if the pending tender process remains unresolved.
The extension can last up to two years from 26 October 2026, according to the legislation. A reasoned order from the minister responsible for infrastructure is required to trigger each extension, and the Government may only invoke the measure if the new licensing procedure has not concluded, if its effectiveness has been suspended, or if the operational transition to new providers cannot be completed without jeopardising airport continuity and safety.
Why the tender remains in dispute
The current licences, held by SPdH — the company formerly known as Groundforce, now controlled by Menzies Aviation — were due to expire on 25 October 2026. The Portuguese Government has already extended these licences on previous occasions because the tender launched by the National Civil Aviation Authority (ANAC) has not been finalised.
The tender for ground handling services has faced sustained litigation. SPdH challenged the initial tender ranking in the Administrative and Fiscal Court of Lisboa, after ANAC provisionally placed a Spanish consortium, Union South, in first place. In April 2026, SPdH sought a precautionary measure to suspend the procedure, but ANAC used a legal mechanism under Article 128 of the Code of Procedure in Administrative Courts to override the challenge, arguing that delaying the process would gravely harm the public interest.
Spanish consortium excluded from process
In July 2026, ANAC confirmed the exclusion of the Union South consortium — formed by Clece and South Europe Ground Services, the ground handling arm of the Iberia group — from the tender. The regulator found the consortium had failed to demonstrate it could mobilise the necessary resources as required in the tender specifications.
Documentation presented by the consortium showed what ANAC described as "cumulative defects, both formal and material", covering insurance coverage, equipment availability, human resources, training, pay and contribution records, and adjustments to the business plan and security programme. Trade unions reported that the Spanish consortium struggled to recruit workers, despite the group initiating hiring and equipment acquisition plans in June 2026 under the assumption it had won the contract.
Following the exclusion, ANAC determined that the second-placed bidder should be selected, and SPdH was called to present its qualification documents. The seven-year contract would cover ground handling — services such as baggage handling, aircraft marshalling and passenger assistance — at Portugal's three busiest airports.
What this means for passengers and airlines
For the hundreds of thousands of passengers passing through Portuguese airports each month, the immediate impact of the extension is continuity. Ground handling services affect check-in times, baggage delivery, and whether planes depart on schedule. The Government stated that ensuring these services remain stable is particularly important during periods of high operational pressure, such as holiday seasons.
The decree-law, approved in the Council of Ministers on 17 September 2026 and promulgated on 25 September, took effect the day after publication. It grants the Government a legal basis to prevent service disruption if litigation continues or if the transition to a new operator cannot be completed safely.
This temporary resolution underscores the critical importance of stable airport operations to Portugal’s tourism-dependent economy and reinforces the need for transparent, efficient public procurement in key infrastructure sectors.
