management contractor Serco Group Inc. to make money through running some of the services businesses now do themselves.

The two companies have formed BAS-Serco Ltd., a joint venture 60 percent owned by BAS. BAS-Serco will market itself as a company which can offer businesses and government management services dealing with administration, building maintenance, hospitals, office facilities, parking, recreation and transportation. The company is also marketing itself as having the expertise to maintain or operate municipal services, and design and manage projects.

Through the joint venture BAS and Serco hope to take advantage here of a worldwide trend among companies to outsource parts of their business to management firms specialised in such services. Currently the joint venture does not have any contracts or employees, Serco's vice president for business development Michael Walker said.

BAS will do the initial marketing while Serco will draw on its expertise in 30 countries providing similar types of services on a contract basis in the private and public sector. While Serco's 400 contracts in other countries are mainly in the aviation sector, it also runs such operations as the public bus service for the municipal government in Adelaide, Australia.

Serco currently has a contract with the Bermuda government to provide air traffic control, ground electronic systems maintenance, aeronautical information, and crash rescue services at the airport.

It also has a contract with the Bermuda Land Development Co. to provide cleaning and grounds maintenance at the former baselands, and for runway and taxiway operations at the airport.

BAS is an aircraft services firm which is listed on the Bermuda Stock Exchange. The company provides technical services to aircraft, airline catering and cargo and ramp handling. It also maintains the airport crash rescue vehicles under a contract with Serco.

Mr. Walker said depending on the type of service needed, Serco would use its staff from its other overseas operations during the initial phase of a contract here, then train local employees to take over a project. BAS chief executive officer Eugene Bean said the company saw the joint venture as a means of diversifying into other types of businesses.