In a statement on Monday, the Swiss-based ground-handling company, which offers passenger check-in, as well as baggage and cargo services, said it will cease business at the end of March.

Since it started operating here in 2005, Swissport has chalked up losses of more than $50 million.

In its statement, the company said: 'In view of the present state of the airline sector, and the fact that Swissport's local operation is not of sufficient size to ensure its sound profitability, Swissport has reluctantly decided to cease all its ground handling activities in Singapore with effect from March 31.

'Swissport deeply regrets this development, and will be doing its utmost over the next few weeks to ensure the smoothest of transitions for its customer airlines and fair severance arrangements for its own personnel.'

The company employs about 300 people.

In a separate statement, the Civil Aviation Authority of Singapore said it would will 'work with Swissport and NTUC to find placement options for their staff, and we will facilitate these discussions.'

Swissport's entry was to create more competition in the market and enhance Changi's competitiveness as an air hub

Since it came, ground-handling rates have fallen by about 15 per cent.