SINGAPORE (Reuters) - Airport ground handling firm Swissport International, a unit of Spain's Grupo Ferrovial , will halt its operations in Singapore, the city-state's civil aviation body said on Monday.

Swissport, which started ground handling operations at Changi in 2005, has chalked up losses of more than S$50 million, the Straits Times reported last month.

The Civil Aviation Authority of Singapore said Swissport's airline clients will continue to receive the same level of service through new agreements with either of the two other ground handlers at Changi Airport, namely Singapore Airport Terminal Services, a unit of Singapore Airlines , and Changi International Airport Services.

Swissport was awarded Changi Airport's third ground handling licence in 2005.

According to CAAS, the aim in introducing a third ground handler was to create more competition in the market so that airlines could look forward to lower ground handling costs while enjoying high levels of service.

CAAS' Director-General and Chief Executive Officer, Mr Lim Kim Choo, said, "It is unfortunate that the size of Swissport's local operations, as well as the timing of the global economic downturn, which has affected the airfreight business in particular, has pushed Swissport to withdraw from Singapore."

Mr Lim added, "CAAS will work with Swissport and NTUC to find placement options for their staff and we will facilitate these discussions."