Aviation services firm BAS Serco has lost the contract to run support services at Bermuda’s airport, it was announced yesterday.

BAS Group confirmed that around 40 staff will be affected after the Bermuda Government had terminated the contract, effective from the end of March next year.

BAS Serco has run airport services for 20 years.

The company said: “BAS Group is working with all stakeholders in relation to the transition of staff to the new operator.”

BAS was also empowered to act as agents for airlines and to provide a variety of operational support to carriers.

The firm, which now owns or has a controlling interest in a total of nine companies, has diversified into other areas like building management.

BAS Group companies provide storage services, infrastructure cabling, fire safety and security systems, elevator installation and maintenance and it also runs courier service IBC.

Ian Cook, the CEO of the BAS Group, added: “While we are disappointed that BAS-Serco has been given notice that the Bermuda Government will not be extending its contract to provide aviation operations at the LF Wade International Airport, we are concentrating on growing our other businesses.

“BAS-Serco will continue to provide facilities management services to a number of well-known buildings such as the Argus building, the Bermuda Monetary Authority, Corner House and HSBC.”

Government yesterday did not respond to requests for comment.

BAS sold its subsidiary Aircraft Services Bermuda Ltd to Cedar Aviation last year.

BAS chairman Michael Darling said at the time it was “a somewhat sad occasion” as the company was divesting the business from which it takes its name.

Mr Cook added: “As BAS has developed over the years we have moved further away from our aviation roots to become a full-fledged service company. When we received the unsolicited offer from Cedar Aviation, it just seemed to make sense. The capital injection from the sale will facilitate further development of the Group along its new direction.”

The BAS Group annual report for 2014-15 said: “In 2012, the group sold its assets related to the servicing of commercial aircraft and ceased operating in this business sector.

“The sale allowed the group to focus on its other core service areas while also exiting an industry that was faced with reduced margins and uncertainty due to world fuel prices and declining customer disposable incomes.”