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SUMMER/AUTUMN 2017 AGS AIRLINE GROUND SERVICES www.ags-airlinegroundservices.com IGHC HEADS GRAPPLING EGYPT AND INNOVATION: IMPROVING OVER TO WITH GREEN MIDDLE EAST THE PASSENGER BANGKOK ISSUES REPORTS EXPERIENCE
FROM LANDING TO TAKE-OFF: WE CARE Swissport International Ltd. Ground Handling, Cargo Services, Aircraft Maintenance, 30th IATA Ground Handling Conference Fuelling, Executive Aviation, Aviation Security May 21 - 24, 2017 • Bangkok, Thailand WWW.SWISSPORT.COM Come and visit us at Stand 23-24
EDITOR’S LETTER | SUMMER/AUTUMN 2017 LETTER FROM AGS SUMMER/AUTUMN 2017 AIRLINE GROUND SERVICES THE EDITOR www.ags-airlinegroundservices.com IGHC HEADS GRAPPLING EGYPT AND INNOVATION: IMPROVING OVER TO WITH GREEN MIDDLE EAST THE PASSENGER BANGKOK ISSUES REPORTS EXPERIENCE H ello and welcome to the Summer 2017 edition of Airline JAMES SHERIDAN Ground Services. Chairman james@evaint.com This issue features an introduction to the IATA Ground Handling Conference taking place in Bangkok PARVEEN RAJA Publisher in May, with details of the programme and what parveen@evaint.com delegates can expect from the event plus an interview with host MEGAN RAMSAY airline Thai Airways. Editor IGHC brings together representatives from across the global meganlouiseramsay@gmail.com aviation industry, providing a platform for intensive networking and HARLEY KHAN exchange of ideas, expertise and information. Among the topics for Head of Commercial discussion this year is the new Standard Ground Handling Agreement harley@evaint.com that is to be released in 2018. To find out more, turn to page 4. TOM WILLIS Elsewhere in this edition of AGS: we look at developments in the Journalist tom@evaint.com Middle East region as a whole as well as considering the challenges peculiar to Egypt’s ground handling industry. Other parts of the YASMIN LYDON Events Coordinator world covered this time around include Australia, where one yasmin@evaint.com handler has had huge success; Singapore, where handler SATS has GEMMA KEEN opened an e-commerce hub; Ukraine, which is undergoing reforms Events Coordinator aimed at improving standards in ground handling; and the UK, gemma@evaint.com home to Jet2.com – a carrier that recently decided to self-handle at SHOBHANA PATEL East Midlands Airport. Head of Finance Readers will also find reports on refuelling (with a view to shobi@evaint.com sustainability for the future), aircraft cleaning (inside and out) and, of SHELDON PINK course, our regular round-up of advances in technology for the various Creative Director sheldon@evaint.com sectors within the ground handling arena. I hope you find plenty of interest in this issue – and I hope to see Address changes and subscription orders to: many of our readers at IGHC! Q circulation@evaint.com ISSN 2040-476X EDITORIAL CONTRIBUTORS David Smith, Eugene Gerden, Chris Lewis, Martin Courtenay PUBLISHED TWICE A YEAR BY EVA International Media Ltd Boswell Cottage, 19 South End Croydon, London CR0 1BE Tel: + 44 (0) 20 8253 4000 Fax: + 44 (0)20 8603 7369 Website: www.evaint.com PRINTED BY The MANSON Group Limited Reynolds House, 8 Porters Wood Valley Road Industrial Estate St Albans, Hertfordshire AL3 6PZ DISTRIBUTED BY Air Business EVA INTERNATIONAL MEDIA LTD PUBLISHERS & EVENTS SPECIALISTS MEGAN RAMSAY Is s u e 2 3 © 2 0 17 | w w w. e v a i n t . c o m Content may not be reproduced in any Editor format without written permission from meganlouiseramsay@gmail.com EVA International Media Ltd www.ags-airlinegroundservices.com SUMMER/AUTUMN 2017 Airline Ground Services 1
CONTENTS | SUMMER/AUTUMN 2017 8 CONTENTS 4 IGHC heads for Bangkok A preview of this year’s IATA Ground Handling Conference 8 Keeping standards high We interview Usanee Sansingken, CEO and acting president at Thai Airways 12 "lSNGPPUIPMEMVDL TUSBUFHZ and innovation How Aerocare has grown in Australia 16 3PMMJOHXJUIUIFQVODIFT Egypt’s struggle against security threats 20 1SPTQFSJUZBNJEUIFDPOmJDUT A review of Middle Eastern developments 24 8IZ+FUDPNJTCVDLJOHUIFUSFOE Gavin Marriott explains the benefits of self-handling 28 3FGVFMMFSTHSBQQMFXJUIHSFFOJTTVFT The latest on environmental efforts in aviation 24 34 'PDVTPOUIFGVUVSF 36 Alex Hungate of SATS on the company’s ambitious plans 37 6LSBJOFDPOUJOVFTHSPVOE IBOEMJOHSFGPSN An update on progress 38 $MFBONBDIJOFT Inside or out, aircraft must be kept spotless 46 *NQSPWJOHUIFQBTTFOHFSFYQFSJFODF We look at various technological advances 54 *OEVTUSZVQEBUF Our regular round-up of news 2 Airline Ground Services Summer/Autumn 2017 www.ags-airlinegroundservices.com
IGHC PREVIEW IGHC HEADS FOR BANGKOK I The 30th IATA ATA head of ground operations more visible within the organisation Joseph Suidan considers: “We – itself, changes in the industry are even International Ground all of the key role-players in this more significant. Handling Conference industry – are used to working “The airside of the airport is poised (IGHC) will be held at the in a high-pressure, extremely on the crest of a wave of change,” time-sensitive and ever-changing and Suidan says. In some countries, ramp Centara Grand Hotel at developing working environment. The jobs are not being filled, causing an in- CentralWorld in Bangkok, ground handling sector, while maybe creasing problem of handling aircraft not so visible to the travelling public, in a timely and cost-effective manner. from 21 to 24 May. It is just as impacted by the changes that It is interesting that this reticence to promises to address vital make this such a dynamic and exciting take up ramp jobs comes at a time issues affecting our ever- industry to work in. when technology seems able to step “From the IATA side on ground op- into the breach – autonomous cars changing industry erations, we have brought to fruition a are starting to take their place on city better structure that brings oversight streets, robot arms have been handling of ground operations strategy, stand- delicate objects and placing delicate ards and processes under the newly items with great precision for quite a established Ground Operations Group number of years and battery-powered or GOG. This new group comprises cars are entering the mainstream of or- top-level representation from airlines dinary people’s commuting and pleas- and ground handlers who can provide ure journeys. far-reaching and insightful guidance How soon will it be before passen- to our industry through IATA’s global ger boarding bridges dock themselves network.” accurately at aircraft doors, and service While the changes within IATA trucks arrive and station themselves in ground operations are important in the correct sequence at the correct air- that they make the ground ops sector craft service points? The technology is 4 Airline Ground Services Summer/Autumn 2017 www.ags-airlinegroundservices.com
IGHC PREVIEW HIGHLIGHTS OF THE IGHC PROGRAMME Day 1 Business, Engagement and Devel- opment – Get facts and figures on the economic outlook and global business opportunities in plenary sessions. Afternoon workshops in- clude what’s new in the SGHA for 2018 and other business develop- ment topics. Day 2 Enhanced Operations – Plenary sessions cover ISAGO’s new model, human factors and more. In an afternoon Q&A speed-networking session, you can discuss topics of interest with experts, face-to-face. Day 3 Innovation, Technology, Sustain- ability – Are we ready to embrace the tempting new technology so- lutions on the airside? Find out what’s in the pipeline and how we’re getting ready. there, it is growing ever cheaper and incidence of ground damage, on a more reliable and – certainly in some worldwide scale, remains a huge worry locations – there is a growing and ever to the sector. IGHC draws together more pressing need to get the job done those whose remit is safety – and seeks with ever fewer people. How are air- to provide some of the answers to the lines, ground service providers and ramp’s ongoing problems. airports preparing for this change? IGHC’s technology-themed third day Topics on the agenda include: will try to posit some answers to these • The new IGHC Innovator 2017 questions. award • Meet the expert – your chance to discuss a variety of ground opera- tions topics with experts in the field The airside of the airport is poised on a virtually one-on-one basis on the crest of a wave of change • Rising stars – University students IATA head of ground operations present their research work Joseph Suidan • Is safety still first when handling services are outsourced, or is price the key? • Technology at Work – automation, robotics, drones, autonomous vehi- AGENDA cles – how ready is the airside for The cornerstone of the IGHC the latest advances in technology? programme is safety – a subject at the • ISAGO: new model heart of ground handling that should • Employee retention – new and ef- never be overlooked. Whilst fatalities ficient ways of training people and on the ramp are rare, nonetheless the retaining your human capital www.ags-airlinegroundservices.com Summer/Autumn 2017 Airline Ground Services 5
IGHC PREVIEW Æ In addition, with the upcoming re- lease of the next version of the global Standard Ground Handling Agree- ment (SGHA) in 2018, it is expected that many delegates will be wanting to get the inside line on what is coming at the first afternoon’s ‘It Takes Two to Tango’ session on the SGHA. The creation of GOG and its vari- ous Ground Operations Technical Sub- groups means that IGHC no longer includes any voting of IGHC officers or of changes to the AHM (Airport Handling Manual) and IGOM (IATA Ground Operations Manual). Also this year, IATA is launching its first IGHC Innovator awards for ground operations to recognise inno- THE FUTURE vation in service, systems and process- ing, amongst others. The finalists will be selected by a jury of industry ex- OF TRAINING T perts and IGHC delegates will be able hose attending the International Ground Handling Conference to cast their vote for “the most innova- (IGHC) this year can visit the IATA booth to experience the new tive innovator” throughout the event, virtual reality training modules on RampVR – the latest ‘plug- with the winner being announced dur- and-play’ virtual reality training solution for ground operations. ing the closing plenary session. RampVR combines high-spec virtual reality hardware and software with IATA training for ground operations professionals so that theo- retical knowledge can be backed up with effective practical training in a very realistic environment, without disrupting active operations on the ramp. Those who have attended Fully compliant with IATA standards as set out in the Airport Handling the conference before will Manual (AHM) and IATA Ground Operations Manual (IGOM), RampVR ac- be well acquainted with the curately replicates the ramp environment and avoids the typical challenges of multicultural nature of the ground operations training. event Airside can be dangerous and noisy, and training in this environment can Joseph Suidan be difficult. Time is often limited during the day due to operational restric- tions and aircraft availability. Furthermore, different weather conditions and unexpected, irregular situations cannot be replicated during ‘live’ operations. Unlike ‘live’ training, RampVR allows users to generate a variety of sce- NETWORKING narios or aircraft turnaround inspections featuring aircraft damage or foreign All the morning and afternoon sessions, object debris to enhance training. Users can also simulate day and night op- as well as the more focused topic erations and adverse weather conditions. It is possible to pause and review sessions, take into account the fact that ‘operations’ so details can be checked or explained and access notes, forms and delegates are also attending IGHC to other reference material in real time. The innovative training programme also meet their counterparts from other allows users to record performance for review and future reference. parts of the world – whether as possible It has been observed that virtual reality training increases retention rates clients, as competitors, or to share and by as much as four times and enhances staff motivation and engagement. exchange experiences. Studies conducted in other industries show that using virtual reality reduces “Those who have attended the con- the duration of staff training, saving a third of training costs. RampVR is a ference before will be well acquainted cost-effective solution that enables flexible training anywhere, anytime. with the multicultural nature of the RampVR can be accessed at designated IATA Training Centers, through in- event,” Suidan observes. “It accurately company training or via the purchase of the required equipment and modules. mirrors the broadest width of the inter- national commercial aviation industry as a global enterprise, attracting world- wide representation of many nation- alities among the almost 800 delegates, which include more than 200 ground handlers and 90 airlines.” For more information about this year’s IGHC, visit http://www.iata.org/ events/ighc/Pages/index.aspx 6 Airline Ground Services Summer/Autumn 2017 www.ags-airlinegroundservices.com
We pride ourselves on delivering flight and passenger services SAFELY AND ON TIME Ramp services Load control Passenger and baggage handling Ticketing Flight operation, crew Catering and cleaning administration and station supervision GROUND HANDLING : handling@wideroe.no | CARGO : cargo.handling@wideroe.no | SWITCHBOARD : +47 7551 3500 | www.wgh.no
THAI AIRWAYS INTERVIEW KEEPING STANDARDS HIGH 5IJTZFBST*"5"(SPVOE)BOEMJOH$POGFSFODFJTUPCFIPTUFECZmBHDBSSJFS Thai Airways International. AGS caught up with Usanee Sansingken, CEO and acting QSFTJEFOUBUUIFBJSMJOF UPlOEPVUXIBUTOFXUIFSF T hai and Thai Smile’s com- be phased out of the fleet over the next ports in Thailand such as Hat Yai, Chi- bined route network covers couple of years. In 2018 Thai’s fleet angrai, Surat Thani and Krabi. It cur- 11 domestic destinations will consist of 100 aircraft altogether rently serves 70 customer airlines. (excluding Bangkok). The and will remain so until 2021. Finally, TGGS delivers in-flight ca- carriers also fly to 52 des- Thai is also the biggest ground tering for both domestic and interna- tinations in 20 Asia-Pacific countries, service provider in Thailand, and tional flights for 60 customer airlines, and to 17 destinations in 12 countries is known as TG Ground Services and delivers on-the-ground catering on intercontinental routes. (TGGS). TGGS provides full ser- services too. Recently, it received the As at 31 March 2017, Thai Air- vices including line maintenance for Skytrax Best Economy Class Airline ways and its sister carrier Thai Smile ground support equipment for Thai Catering 2016 award. Airways owned a fleet of 95 aircraft, and other customer airlines at Bang- consisting of 38 long-haul aircraft, 35 kok and other domestic stations. It TGGS offers a pretty comprehensive medium-range aircraft and 22 nar- is investing in new ground support range of services – presumably you row-body short-haul aircraft including equipment to improve ramp services self-handle at your home hub? B737-400 and A320-200. across its domestic network. Yes, we do our self-handling at The company will take delivery TGGS has the biggest cargo ter- our home base in Thailand and han- of five A350-900s in the latter half minal space in Bangkok (90,000m2), dle for our customer airlines’ flights, of 2017 and five more in 2018. These Phuket (1,800m2) and Chiangmai both in Bangkok and domestic sta- new aircraft will replace two A330- (2,000m2). It is expanding its cargo tions, together with our 100% owned 300s and five B747-400s, which will terminal network to cover other air- subsidiary company WingSpan. With 8 Airline Ground Services Summer/Autumn 2017 www.ags-airlinegroundservices.com
THAI AIRWAYS INTERVIEW this strategy, we can manage costs ef- It is necessary to have people who can ficiently. Furthermore, we can better multi-task. Just like any other indus- control many aspects of manpower. try, the airline industry needs to attract We are able to develop new young potential employees with good benefits people, to have Thai standards, which and a good career path as well as job greatly satisfy our customers. The security. Definitely, we have to balance shortage of personnel is at minimum all of this with our cost control in order to none. In some operations, our com- to keep our people with us. People are pany provides outsourcing or out-job always the valued resource to maintain in order to achieve a complete supply our standards. chain. For financial management and cost control, one of the most important What about elsewhere – what projects in our company is to review is your approach to handling at cost reduction at every operations unit Thai Airways is investing in new GSE locations besides Bangkok? without affecting quality of service. We do self-handling services outside The cargo and mail department has Thailand only at KTM (Tribhuvan Inter- opportunity to expand its ground han- performed very well on this when they national airport in Kathmandu). At oth- dling business abroad in the future. launched Cargo Lean Management: er stations abroad we use various GHAs under this programme, they can short- depending on factors such as choice or Returning to your home base, en working time, decrease damage availability of providers at each loca- what do you see as the biggest claim, increase safety and security, cre- tion, service provision and competitive/ challenges there? ate new service solutions, increase ef- reasonable prices. Pricewise, we operate From a ground handler’s perspec- ficiency and, finally, increase customer under a global deal for some locations tive, the main challenges are severe satisfaction. The catering department such as in Australia (at Sydney, Mel- competition in pricing, financial man- has been successful in reducing im- bourne, Brisbane and Perth). We expect agement and cost control and service ported raw material by buying more to expand this concept to other locations expectation from airline customers. locally. Their actions support what the in Europe and Asia. Our challenges are how we have Thai government calls for. Another ex- As one of the ground services pro- to manage and control costs that are ample is we are using consultant ser- viders at locations within Thailand, not stable; that is manpower, use of vices for passenger and ramp areas of TGGS is also looking for a potential ground service equipment and so on. the business. BidAir Safe, Reliable Service SOUTH AFRICA When Handling is important to you! t$BSHP)BOEMJOH t1BTTFOHFS)BOEMJOH t3BNQ)BOEMJOH t"JSDSBGU(SPPNJOH t&YFDVUJWF$PODJFSHF t0VUTPVSDFE$BSHP t)PTQJUBMJUZ Providing quality ground handling services to more than 20 PROUDLY airlines operating 17 000 flights a month. 5FM 'BY NBSLFUJOH!CJEBJSDP[BXXXCJEBJSDP[B www.ags-airlinegroundservices.com Summer/Autumn 2017 Airline Ground Services 9
THAI AIRWAYS INTERVIEW Æ WORKING TOGETHER Recently, Thai Airways International announced its in- UFOUJPOUPCVJMEUIFSFHJPOTlOFTUBJSDSBGUNBJOUFOBODF repair and overhaul facility at U-Tapao International airport, and in March, European aircraft maker Airbus signed an agreement to invest in the new facility. “The government will accelerate the joint aircraft repair centre between Thai Airways International and Airbus and arrange regulations of public-private partnerships to short- en the EEC Implementation period to three months,” ac- cording to Deputy Prime Minister Somkid Jatusripitak, who oversees the economic ministries in Thailand. He adds that when renovations and upgrades are com- pleted, U-Tapao will be as large as Suvarnabhumi Interna- tional Airport, the country’s main international gateway located on the outskirts of Bangkok. Thai and TGGS plan to support the EEC project by offering ground handling servic- es to airlines at U-Tapao. “We believe that our well-trained staff and full facility will effectively encourage the aviation service and business there,” Usanee remarks. Next, service expectation: we un- There were concerns over aviation compliance culture and EASA stand- derstand our airline customers can save safety in Thailand a couple of years ard for senior management, managers costs by using full ground handling ser- ago; what practical steps has Thai and staff were also completed. vices. They can also conveniently moni- Airways taken to improve safety? Implementation of a new safety tor our services at headquarters. We In May 2015, Thai Airways man- and compliance management tool, have introduced several new technolo- agement launched a new policy to namely the Integrated Quality and gies to support operations such as on- align the airline to EASA standards to Safety Management System (IQSMS) line check-in, kiosk check-in, highly ef- ensure a world-class airline manage- began on 16 November 2015. The com- ficient systems/equipment, etc to avoid ment system. An upgrade to meet with plete cutover date from the former in- manpower shortages and/or to reduce the EASA Part ORO (Organization time-consuming processes as well as Requirements for Air Operations) was controlling costs whilst enhancing con- completed in September 2015 along Our long-term plan is to look venience and satisfaction for our cus- with the EASA-based Organization for an effective partnership tomers. Our long-term plan is to look Management Manual (OMM), spe- project with the Thai group in for an effective partnership project with cifically called THAI Integrated Man- order to synergise the Three the Thai group in order to synergise the agement Manual (TiMM). The newly Brand Strategy Three Brand Strategy (Thai Airways, drafted EASA-based OM-A and OM-D Usanee Sansingken Thai Smile Airways and Nok Air) so we were produced on 31 October 2015. can cover all customer sectors. Workshops and trainings on the new house developed Air Safety Reporting program to this Company Safety In- formation System (CSIS) tool will co- incide with Thai’s 57-year anniversary, namely 1 May 2017. A joint collaboration between Scandinavian Airline Systems (SAS) and Thai in the implementation of a safety performance monitoring and analysis platform named ENPLORE began on 4 January 2016 and was fully implemented on both airlines on 7 De- cember 2016, expanding to three more Star Alliance carriers with the prospect of adoption by the whole alliance if found effective. This platform doesn’t only provide real-time SPIs (service provider interfaces) but also combines the correlation of SPIs to predict the likelihood of safety events such as the European Aviation Safety Agency ‘Sig- nificant 7’ to give airlines a chance to intervene before such mishaps occur. 10 Airline Ground Services Summer/Autumn 2017 www.ags-airlinegroundservices.com
THAI AIRWAYS INTERVIEW More generally, how is Thailand’s aviation industry developing? The number of tourists is grow- ing because of the government policy to promote Thailand’s tourism, with floods of tourists coming from China and all over the world. Air transporta- tion has become easier and more popu- lar. Tourists can choose among various airlines to fly from/to Thailand. Low- cost carriers (LCCs) have definitely come in and taken some market share from the premium airlines. The trend of this industry depends on several factors. Customers come with more expectations, and they are more cost conscious than ever. Therefore, the airline business is much more aggres- sive. In order to compete with LCCs, premium airlines raise their standards to a higher level for both service qual- TGGS delivers in-flight catering for both domestic and international flights for 60 customer airlines ity and safety. TGGS has to customise its services in order to serve its various customer Thailand is obviously attractive for land (AOT) will expand Midfield, Ter- airlines. For example, LCCs need less Chinese tourists, so we do focus on our minal 2 within five years, to serve ground time, services for narrow-bod- staff ’s potential for second language the growth of the industry. AOT also ied aircraft, less baggage allowance skills as well. launched a Passenger Baggage Recon- and so on while legacy airlines need At Bangkok Suvarnabhumi airport ciliation System (PBRS) on January 1, full premium services. Besides this, (BKK), the Airport Authority of Thai- 2017. www.ags-airlinegroundservices.com Summer/Autumn 2017 Airline Ground Services 11
HANDLER FOCUS Glenn Rutherford, the CEO of Australian ground handler Aerocare, has been on what he calls a “rollercoaster ride” in his two decades with the company, as David Smith discovers A FIRM FOOTHOLD: LUCK, STRATEGY AND INNOVATION R utherford first worked at have asked, ‘what could be done differ- terrorist activities in New York city, Aerocare as a student, with ently?’” Aerocare’s fortunes changed overnight a casual job on the ramp The story of Aerocare’s rapid rise with the collapse of Australia’s second- at weekends. At that time, is a mixture of great strategy and good largest domestic carrier, Ansett Air- Aerocare had only 37 em- old-fashioned luck. The company be- lines. ployees. Later, in 1997, he rejoined in a gan life in 1992 with one man running The demise of such a big operation managerial role and has since overseen operations supported by his friends had far-reaching implications for eve- periods of growth at breakneck speed. and family. For a long time, Aerocare ryone in the Australian aviation sector. In the past four years, Aerocare’s share had only small bases at three Austral- For a start, it was the largest sacking of the market has grown by 300% ian airports – Newcastle, Sydney and in Australian corporate history, with compared with less than 10% for its Melbourne. But on September 14, 16,000 staff laid off instantly. Ansett competitors. Aerocare now has 3,000 2001, just three days after the terrible had been hit hard by cutthroat com- employees working at 35 airports and petition in the industry, particularly the fourth-largest percentage of the from the arrival a year earlier of two Australian and New Zealand ground new budget airlines, Virgin Blue and handling business. The company Impulse. For Aerocare, the most sig- services 3,200 flights per week and nificant consequence of Ansett’s col- 41,200 passengers per day. lapse was that it opened up a host of “It’s been a rollercoaster ride for opportunities with the emergence of sure,” says Rutherford. “We’ve always Virgin Blue, which later became Virgin run our own race and not followed our Australia. competitors down any paths. We were “Virgin Blue approached us in Sep- a new entrant to an established indus- tember, 2001, and asked us to set up try and we challenged every accepted ground handling operations at six method with our processes, resource airports in six weeks all over Austral- structures, role demarcations and even ia, from Darwin in the north of the our GSE design. At every stage we country to Canberra in the south,” 12 Airline Ground Services Summer/Autumn 2017 www.ags-airlinegroundservices.com
HANDLER FOCUS Rutherford recounts. “We were given chased Aviation Ground Handling passenger transport and other ground 36 hours to set up operations at Can- (AVGH) from Queensland Airports. services. It employs around 400 staff berra. We were notified on the Friday AVGH is now integrated and operat- and a fleet of 140 vehicles. and were operating on Sunday. Need- ing as Aerocare with 200 staff offering In New Zealand, Aerocare secured less to say, we didn’t sleep much at the a full range of ground support services a strong foothold four years ago when time. But we called up every resource for passenger, cargo and military air- it purchased Skycare, a significant and we managed it.” craft at Gold Coast, Townsville, Rock- fixed-based operator (FBO) and the Fortunately, at the time of Virgin hampton, Mackay, Sunshine Coast, ground handler for JetStar. In addi- Blue’s approach, Aerocare had recently Miles, Brisbane, Roma and Whyalla tion to other ground handling services, landed a ground handling contract with the other recent low-budget en- trant to the Australian market, Im- A CLEAR DIVISION pulse. But as part of the 2001 realign- Andrew Bartlett, head of Qantas Airport Services, agrees that the mar- ment of the sector, Impulse had been ket in Australia is divided into two between the major cities (which are sold to Qantas, which had its own dominated by the big ground handlers) and regional areas, especially in ground handling teams. As a result, Western Australia and inland Queensland (where smaller players prevail). the Aerocare ground handlers who He describes these companies as “small businesses with highly motivated had just been laid off from the Impulse owners, but sometimes hindered by transient workforces”. contract could be re-deployed with Virgin Blue. h5IFTF NBSLFUT mVDUVBUF XJUI TVQQMJFST SFMJBOU PO BJSMJOF USBGlD XIJDI With the Virgin Blue contract in may be linked to mining and industry changes,” Bartlett adds. “Periodically place, Aerocare’s workforce expanded one of the larger Australian ground handling companies makes inroads into from 37 to 200. Soon afterwards, the these markets linked to securing contracts with the larger Australian airlines. company moved its home base from Generally the service provided by these companies is very personalised and Sydney to Brisbane, where it was easi- highly responsive.” er to meet up with Virgin Blue’s repre- sentatives in person. The strong part- nership between the two companies was to be the bedrock of Aerocare’s growth over the next two decades. MARKETS Most of Aerocare’s business comes from domestic demand, which is enormous in Australia. As the world’s sixth-largest country, much of it uninhabitable, Australia’s population is scattered far and wide. Last year, there were about 59 million domestic passengers compared with 36.6 million international flights, according to Australian Government data. Although there are 19 air operators in the domestic market, it is dominated by three airlines: Qantas (35%), Virgin Australia (29%) and Jetstar Airways (21%). “In Australia there are two distinct markets: domestic and international,” explains Rutherford. “Aerocare has the largest share of the domestic market, airports. A year before the AVGH pur- Skycare has become the flight support with a handful of smaller agents that chase, Aerocare also acquired Airline service provider for VVIPs and govern- create a competitive environment. But Handling Agency – a regional Queens- ment officials throughout Australasia. lots of smaller operators have disap- land competitor. Another important part of Aero- peared over the past few years. To suc- Another major acquisition came care’s success has been its embrace of ceed in this market, we’ve taken an ag- the following year with the purchase technology solutions to increase effi- gressive approach to scaling up, which of Carbridge, a leader in passen- ciency. When it could not afford to buy has been the right strategy to lower ger transport and aviation solutions expensive kit in its early days, it opted overheads and meet customer expec- which transports more than 25 mil- to build its own. Fortunately, these tations of better prices. We’ve grown lion passengers each year at Bris- cheaper versions usually turned out 300% in the past four years compared bane, Sydney, Adelaide, Perth and to be much better options. “We went with our competitors growing at less Melbourne and Singapore airports. about building software that suited than 10%.” Carbridge operates under its exist- our modern business. We were able to Part of Aerocare’s success is down ing brand and business structure. In keep our modern practices and let the to making strategic acquisitions of addition to aviation bus transport, software fit around the business rather smaller companies to scale up its op- Carbridge provides transport consul- than trying to adapt old technology,” erations. In 2015, for example, it pur- tancy, bus design and manufacture, Rutherford observes. www.ags-airlinegroundservices.com Summer/Autumn 2017 Airline Ground Services 13
HANDLER FOCUS Æ Aerocare, he says, has developed some of the most impressive technol- ogy solutions to be found anywhere in the ground handling world. In par- ticular, the company has access to an extraordinary quantity of input data from customers, airports and air traf- fic. “We’ve got more data than anyone and a fully integrated database, which includes payroll, performance report- ing, resourcing and asset management. We analyse so much information that we can fix issues even before our cus- tomers come close to knowing there’s a potential problem,” Rutherford states. Aerocare has mainly used a ca- pable small in-house team to design technology solutions. But it employed an outside company of specialists in optimisation to design its latest piece of kit, which is called AROS (Aerocare Resource Optimisation System). “It enables us to combine all the permu- tations of training and rosters and live schedules and staff preferences. It’s the most efficient roster possible and in such a competitive environment, it’s fundamental,” says Rutherford. For a long time, Aerocare employed just one payroll person part-time to pay 1,000 employees at 15 sites over two and a half days each month. Now there are triple that number of employ- ees based in two separate countries and the entire payroll consists of just three people. “This is tactical as well as technical. Although we are a happy company where people enjoy working, we don’t want to do work that doesn’t need to be done. If a machine or a web tool can populate forms, or write ros- ters, then we will invent it,” explains Rutherford. GOING INTERNATIONAL Most of Aerocare’s expansion has been domestic, but Rutherford says that in the past four years, its share of international ground handling has grown from 4% to around 17%. It now lies in fourth position behind the two multinationals, dnata and Menzies, and the legacy Australian airline, Qantas. Aerocare, he says, is getting enquiries all the time about its international services. “The multinationals tend to be only interested in international and cargo because the contracts are more lucra- tive than domestic business,” he out- lines. “They have the advantage that they can leverage global deals and keep their prices down. But Aerocare has advantages, too, because local knowl- edge counts for a lot in the Australa- sian region. As an Australian company, we understand the cultural and indus- 14 Airline Ground Services Summer/Autumn 2017 www.ags-airlinegroundservices.com
HANDLER FOCUS trial landscape very well. Our busi- ness model is continually evolving and We analyse so much information that we can there are always international con- lYJTTVFTFWFOCFGPSFPVSDVTUPNFSTDPNF tracts coming up for renewal, whereas close to knowing there’s a potential problem the domestic market is more static.” Glenn Rutherford More international ground han- dling business is bound to emerge in the coming years in Australasia, one of the world’s most dynamic aviation markets. The International Air Trans- port Association (IATA) is predicting 3.4% average growth in international passengers until the end of the decade. Australia is increasingly becoming a tourist destination for well-off Chi- nese, Japanese and Koreans. Figures from the Australian Bureau of Statis- tics showed double-digit year-on-year growth in visitor arrivals was recorded for China-based carriers to maintain “Asia is the fastest-growing mar- in all of the first 10 months of 2016. Al- their strong growth into Australia and ket and we are right on the fringes though New Zealand remains the larg- add new routes from China’s emerg- and well-placed. The business model est market by annual visitors, China ing second and third-tier cities. It will is changing there, too, and that will will soon overtake it. An estimated 1.17 also open up opportunities for Aerocare help us. The old model of cheap labour million passengers arrived in Australia both in Australia and New Zealand, and won’t work there as time goes on. As from China last year. potentially in China. Rutherford says wages in Asia are rising quickly, the Chinese and Australian airlines Aerocare is now looking to expand into ability to manage the labour workforce now have unrestricted international ac- overseas markets for the first time and efficiently becomes a high priority and cess into each other’s markets through is weighing up a few options, including we have done a better job building a new arrangement for an ‘open avia- in the Indian and Chinese markets. He technology to manage that because of tion market’ between the countries. believes market conditions are increas- the comparatively higher Australian This will pave the way, in particular, ingly favourable to such a move. wages,” he concludes. THINK DIFFERENTLY How did Aerocare become Australia’s leading independent ground handler? We NEVER stop looking for better ways. www.aerocare.com.au Meet us at the IATA Ground Handling Conference in Bangkok from May 21-24. SAFETY EFFICIENCY INTEGRITY www.ags-airlinegroundservices.com Summer/Autumn 2017 Airline Ground Services 15
EGYPT REPORT ROLLING WITH THE PUNCHES E gypt’s history over the Services Company (EGS). Presiden- The challenge of last few decades has been tial and parliamentary elections have balancing quality and marked by numerous ter- led to the formation of a stable gov- QSJDFJOEJGlDVMUQPMJUJDBM rorist attacks alongside ernment, which has taken significant economic struggles and steps towards economic reform that and economic times concerns about human rights viola- Tharwat believes is essential to the is made all the more tions under a dictatorial regime. Pro- Egyptian economy as a whole. EJGlDVMUGPS&HZQUT tests against President Hosni Mubarak In addition: “Both airlines and led to a revolution in 2011, military ground handlers have huge support handlers in the light crackdowns and a coup d’état remov- from the holding company for airports of continuing security ing power from the then President Mo- and navigation which is reflected in concerns hamed Morsi in 2013. continuous meetings and communica- The current President, Abdel Fat- tions with both sides, and in taking all tah al-Sisi, was elected in 2014, and the needed steps to raise the security (although his rule has included mass bars and procedures at all airports.” trials, widespread jailing of opponents Ground handling in Egypt is im- and a crackdown on civil liberties), proving in respect of working practices things have stabilised in recent times, and service quality. For example, EGS according to Bahaa Tharwat, market was one of the first five companies in research manager at Egyptair Ground the world to obtain ISAGO (IATA Safety 16 Airline Ground Services Summer/Autumn 2017 www.ags-airlinegroundservices.com
EGYPT REPORT Audit for Ground Operations) and is country is slowly growing, with some now certified at six stations in Egypt: countries resuming air travel and oth- Cairo, Hurghada, Sharm el Sheikh, ers promising to do so in the near fu- Borg El Arab–Alexandria, Luxor and ture. Egyptian experts are certain that Aswan. The company remains focused the tourists will come back.” on training and is also in the process of renewing its equipment, investing SETBACK in passenger steps, conveyor belts, air However, this issue of AGS went to conditioning units (ACU), air start press in the aftermath of the terrorist units (ASU), potable water trucks, toi- attacks on two Coptic churches in Tanta let trucks and passenger buses. and Alexandria that took place on Palm Another handler, Z-Aviation Ser- Sunday. Egypt is now several weeks vices (ZAS – which operated as an air- into a three-month state of emergency line itself between 1982 and 1997 and, declared by President Abdel Fattah al- as such, has first-hand understanding Sisi, and the country’s tourism industry of the needs of its airline customers) has taken another hit just as it seemed to is also ISAGO certified and RA3 regis- be picking itself up. tered, while Link Aero Trading Agen- Bahaa Tharwat, market research manager The UK Foreign Office, as well as cy holds a security licence from the at Egyptair Ground Services Company its equivalents in some other coun- Egyptian Civil Aviation Authority and tries, warns travellers of “a high threat prides itself on its “top-of-the-line” se- from terrorism in Egypt. Terrorists curity services. Looking back on last year, Sami Eli- continue to plan and conduct attacks. Tharwat is hopeful that the overall as, vice president commercial and op- Further attacks are likely. Most terror- political stability in Egypt will contin- erations at ZAS, characterises 2016 as ist attacks target the security forces, ue for at least the next couple of years, “a year of hard work. Egypt fulfilled all their facilities and other government leading to growth in both passenger its obligations in terms of security and buildings. You should take great care and freight transport demand and equipment. It has to be noted that the near these places. It’s also likely that possibly a return to pre-2010 figures. representatives of different countries, foreigners, including tourists, will be Nonetheless, he has an eye on “some who had visited Egyptian airports, re- targeted.” promising opportunities” outside the marked on significant progress. At the Egypt is also among the countries country, too. moment, the number of tourists in the affected by the laptop ban imposed by www.ags-airlinegroundservices.com Summer/Autumn 2017 Airline Ground Services 17
EGYPT REPORT Æ Amr Samir, Link Aero Trading Agency CEO the US and UK, which requires large Elias is not surprised. Egypt, he night to adapt our capabilities, training, electronic devices to be stowed in the says, is naturally more of a target for etc to match and comply with the new hold and not brought into the cabin in terrorists than some other locations. non-stop ways of conducting attacks.” hand luggage on flights originating in “What do we expect when we have a lit- Link Aero Trading Agency CEO certain Middle Eastern and North Af- tle town (Luxor) that contains a third Amr Samir notes that although the rican nations that are deemed to pre- of the world’s monuments? What do Egyptian airport authorities have al- sent a high security risk. we expect, when Egypt is in a strategic ways implemented international secu- According to Tharwat, the ban on position for holiday makers from all rity standards, “they have also been in- flights from some countries due to se- over the world? vesting in more sophisticated security curity concerns continues to present a “Global terrorist organisations con- measures in order to regain trust from significant challenge. “Most countries tinue to demonstrate motivation to the tourism sector”. have removed the ban but still we are carry out attacks on the aviation indus- facing difficulties with receiving flights try,” he adds. In the light of that fact, POSITIVE from both UK and Russia,” he says. and the use of the technology such as Taking a wider view, geopolitical issues With air travel having fallen for the Internet (closed forums or social across the Middle East have had a all these reasons, competition among media sites, for instance) as a tool for negative impact on the handling business Egypt’s handlers has naturally be- the discussion and planning of these at- elsewhere in the region besides Egypt, come fierce. The airports most affected tacks, Elias considers: “If we agree that and major airports in countries where are those that depend for their busi- the whole world is in one war against there are active conflicts or instability ness mainly on international tourists one enemy, then it is [a case of ] coop- have been subject to significant declines – Sharm el Sheikh, Hurghada, Luxor eration on all levels from every country in activity. But: “Air traffic in Dubai, and Aswan. with every country, working day and Abu Dhabi and Doha hubs will still be strong as they are mainly driven by the major Middle Eastern carriers using these airports to connect the Asia Pacific region with Europe,” Samir says. The ongoing expansion of the private jet industry is also keeping Middle Eastern aviation growing rap- idly, he notes. This trend is creating opportunities for ground handling companies in the region – including some Egyptian firms, who are focus- ing on their neighbouring countries to obtain more business. Link Aero, for instance, is strengthening its op- erational bases in Jordan, UAE and Morocco by transferring experienced employees. It is also studying other opportunities in Africa with a view to Passengers travelling from Egypt to the US (and the expansion into new markets in order UK) may no longer carry large electronic devices in to help mitigate the negative effects of their hand luggage amid security concerns the unstable aviation sector in Egypt – all the while remaining hopeful that better times are soon to come. • See page 20 for more on the Middle East 18 Airline Ground Services Summer/Autumn 2017 www.ags-airlinegroundservices.com
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MIDDLE EAST REVIEW The Middle East may be going through troubled times, but that isn’t stopping the region’s aviation industry from expanding PROSPERITY AMID THE CONFLICTS I In the Middle East, great wealth all within less than 100 miles of each be a European company, its planes rubs shoulders with great strife. It other, all feature in the regional top include many US-made components is a place of two parts, very broadly. 10 and they have lately been joined by and would be subject to any continued There is the troubled Middle East the new Al Maktoum International (or sanctions that President Trump might – the countries torn by war and Dubai World Central), which promises choose to impose in Iran. strife and the ones that get the most eventually to outshine them all when it In any case, Iran badly needs to sort coverage in the western media like Iraq finally gets up to speed. out its aviation infrastructure before it or Syria – and the opulent Middle East In this part of the world, countries can contemplate the large-scale opera- – the UAE, Oman and Saudi Arabia, for build infrastructure first and then wor- tion of fleets of shiny new aircraft. It example. ry about finding business to fill it. has been estimated that the country’s As one might expect, the latter have But not all countries belong to the airports alone need the equivalent of well-developed aviation sectors, while elite; many have a much more troubled billions of dollars for repairs and to the former have a great deal of rebuild- recent past. bring them up to anything approach- ing to do. Iran appeared to have achieved ing contemporary standards. The region is home to some of the something of a breakthrough when Still, Iran could possibly become a world’s most dynamic aviation mar- international sanctions were lifted as regional aviation powerhouse. While kets. In the UAE, new low-cost car- part of a nuclear deal. In remarkably suggestions in the wake of the lifting riers such as flydubai and Air Arabia quick succession, it announced an or- of sanctions that it could become a are competing with somewhat longer der for over 100 Airbus planes, to mod- second Dubai now seem over-euphor- established – though still relatively ernise its decrepit fleet of ageing and ic, this country of close on 80 million young – carriers like Emirates and obsolete planes. people is in fact the Middle East’s sec- Etihad. The UAE also packs in a large However, with a new, apparently ond-largest economy and it certainly number of airports, relative to its size: much more hawkish occupant of the has the potential to grow its airports the original main hub, Dubai Inter- White House, that order has been and aviation sector several-fold. It has national, Abu Dhabi and Sharjah are thrown into doubt. While Airbus may around 55 airports, though most of 20 Airline Ground Services Summer/Autumn 2017 www.ags-airlinegroundservices.com
MIDDLE EAST REVIEW DXB’s Concourse D can accommodate 60 international airlines them are severely under-invested and welcomed a number of new carriers to winter months.” fall well short of modern standards Dubai in 2016/17. Much of the increase in traffic is and customer expectations. These include new operators to home grown, with Emirates and fly- DXB such as Corendon Dutch Airlines dubai continuing to boost their net- FROM STRENGTH TO STRENGTH and Rossiya Airlines as well as the re- work and frequencies. The gauge of the In many other countries, aviation sumption of services by Thomson Air- Emirates fleet continues to increase, continues to break all records. lines and Nepal Airlines at DWC and incidentally also making dnata the Passenger traffic at Dubai International DXB, respectively. Dnata is also “excit- largest handler of the A380 worldwide. Airport reached another all-time high edly awaiting the commencement of Likewise, regional carriers such as in January 2017 – 8 million – and traffic operations by Himalayan Airlines and Saudia, Gulf Air, Kuwait Airways and is continuing to grow at near double- Salam Air”. Qatar Airways have all bolstered their digit levels. Deane adds: “We have also seen operations to DXB over the past year, One of the major players in Middle strong growth from Air India, Air In- with Qatar Airways also adding flights Eastern handling is dnata, which has dia Express, Jet Airways, Indigo and to DWC. The geo-centricity of Dubai now expanded far beyond its original Spice Jet, as India and Dubai continue and the Middle East generally lends home market of Dubai and has op- to strengthen their tourism and busi- itself to building itself into a natural erations in countries throughout the ness ties. Given the challenges posed to hub between East and West, and with world, including the UK, Singapore, the airline industry over recent years, all regional carriers scheduled to re- the Netherlands and Australia. it is encouraging to see the eagerness ceive significant numbers of new air- Back in its ‘home’ market, vice- to be a part of the growth story of craft over the coming year, dnata an- president for commercial and business Dubai remains strong in all corners of ticipates that this trend will continue. development Emma Deane says that as the globe. We also receive regular re- Dubai World Central (DWC), Dubai’s the ground handler at Dubai Interna- quests from ad-hoc charter operators, new airport, is at the heart of the long- tional (DXB) and Al Maktoum Inter- taking advantage of the tourist ap- term growth strategy of aviation in the national (DWC) Airports, dnata has petite for exploring Dubai during the emirate. www.ags-airlinegroundservices.com Summer/Autumn 2017 Airline Ground Services 21
MIDDLE EAST REVIEW Æ In 2016, dnata handled 850,633 passengers, up 84.5% compared to 2015. Deane comments that “dna- ta is excited to support the recently launched next phase expansion of the ment such as oxygen masks. Thankfully, perhaps, the influx of refugees has abated lately, along with the number of refugee flights – though not before the estimated one million DWC Passenger Terminal, which on refugees had swelled the population of completion in late 2017, will accom- this small country by around 25%. modate 26 million passengers per an- Lebanon itself has had its troubles num. In the meantime, we continue to in the past, of course. MEAG’s parent, see significant enhancements to the Middle East Airlines (MEA/Airliban) existing facilities at DXB.” MEAG’s parent carrier, Middle East endured the country’s civil war from The latter’s Concourse D, which Airlines, has strengthened and improved 1975 to 1990, often having to operate opened almost a year ago, can accom- its services as an airline in exile with the planes modate 60 international carriers. The removed to the safety of neighbouring 18 million passengers that will pass countries. through annually can avail of the flag- a GSA through its travel business, to Everything has now stabilised, ship Marhaba lounge, which includes uplifting meals onto flights through its though, and MEA was able to rebuild sleeping rooms, a movie theatre and catering operations, not just in Dubai, its route network; indeed, it strength- business centre, various airline loung- but in 82 other countries. ened and improved its services to Eu- es and retail outlets prior to boarding As a result: “The handling market rope, the Middle East and the Gulf. through open gates, a concept which is is becoming one which values strategic MEAG now employs more than unique to Concourse D. relationships and corresponding bene- 1400 people and, as the main handler Following the refurbishment of fits generated for a carrier from dnata’s at RHIA, serves 28 airline customers Concourse C, dnata will support Emir- knowledge of its core product.” and handles over 24,000 departures a ates across three concourses, the fly- year. “Life is back to normal here,” con- dubai hub at Terminal 2 and interna- THE OTHER SIDE OF THE COIN firms Hindi. tional carriers across both Terminal 1 While life in most of the Middle East is In 2015, MEAG handled 83% of and Terminal 2. Occupying an impres- more ‘normal’ than the news bulletins passengers, 92% of cargo and 83% of sive footprint of over 2 million m2, would have you believe and this is all flights at RHIA. It lists 32 carrier DXB handled over 83 million passen- reflected in airport operations, events in customers, although the actual opera- gers in 2016, with Marhaba Meet and other countries can sometimes impinge tors tend to fluctuate. Assist agents and dnata ground staff on otherwise peaceful places, points out MEAG will concentrate on its core ensuring smooth connection of pas- Nada Hindi, responsible for marketing Beirut market for the foreseeable fu- sengers and their baggage. at MEAG – Middle East Airlines ture, Hindi adds. There are plans for Deane considers: “Carriers contin- Ground Handling – which provides full expansion outside Lebanon, but these ue to seek safe, on-time performance ground handling services at Rafic Hariri are long term, she stresses. from dnata – which we are delighted International Airport in Beirut (RHIA). Meanwhile, MEAG is expanding its to consistently deliver. Over and above Since the ending of the country’s Beirut operations, including building a basic ground handling, we have seen civil war, Lebanon has been quietly re- new, modern cargo terminal – “Cargo an increasing trend of outsourcing building its aviation sector and has en- is a growing business,” Hindi explains. non-core business to ground service joyed many years of comparative calm, Again, this is partly due to events in providers. Consequently, we are in- out of the international spotlight. neighbouring countries. Syria is effec- creasingly asked to provide a full-ser- However, it can’t entirely ignore tively closed to air transport so Leba- vice package to carriers including sta- events on its doorstep. Beirut has been non has increasingly taken on the role tion management and lounge facilities handling large numbers of refugee of transhipment hub for neighbouring to name a few.” flights from its troubled neighbour, countries such as Iraq. As an organisation, dnata can pro- Syria. Some of these unfortunate peo- Another major MEAG develop- vide a one-stop-shop for carriers by ple need immediate medical attention ment is its investment in an extensive supporting several aspects of an air- on arrival, so MEAG must arrange new handling fleet and equipment in line’s business – from selling tickets as doctors, nurses and medical equip- line with the latest IATA directives. Emirates aircraft at DXB 22 Airline Ground Services Summer/Autumn 2017 www.ags-airlinegroundservices.com
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