Ground Handling

Ground Handling

Anke Diana Baumann

Anke Diana BaumannGround Services2

Off we go…..Goals of the course

To understand the importance of Ground Services as a part of the

aviation industry

To understand the regulations in the ground handling market

To become familiar with the service package of ground services

To understand the interests of the market participants

Problems and future of the ground handling business

To get an idea of the advantages and disadvantages on the

globalisation of the ground handling companies

3

Sources

IATA AHM 810 Standard Ground Handling Agreement

European Regulation on the liberalization of ground handling markets in Europe 96/97 EG

www.iata.org – International Air Transport Association

Online-Publications on Ground Services and Standards (IOSA / ISAGO)

Ground Handling International and other publications (Terminal, Executive) of the Airports Publishing Network Ltd., Magazines

SH & E Ltd. Study on the quality and efficiency of ground handling services at EU airports as a result of the implementation of Council Directive 96/97 EG

Anke Diana BaumannGround Services

4

Contents

1. Basics of Ground Handling & Services – Introduction

2. Description of the Ground Handling Market

2.1. Market size and structure

2.2. Liberalisation

2.3. Outsourcing

2.4. Standard Ground Handling Agreement

3. Technological Development & Status in the ground-handling business

4. Globalisation - How to build up a ground handling network

5. Success Factors like Key Account Management and Quality & Safety Management

6. Budgeting and ReportingAnke Diana Baumann

Ground Services

1. Basics of Ground Handling & Services

5 Anke Diana BaumannGround Services

Ramp Safety


Ramp Safety

9

Ramp Safety


Ramp Safety


•

Ramp Safety


SAFETY vs. SECURITY!

14

Basics - Scope of Services

Passenger Handling / Ops• Check-in• Lounge services• Arrival services• Boarding• Weight & balance• Supervision

Special Services• Snow removal• Fuelling• Line maintenance• Baggage container management

• Transport services (crew & pax)• Wheel chair services

Cargo Handling• Cargo documentation• Storage• Build up / breakdown of Pallets

• Dangerous goods containers• Valuables / animals / Perishables

Ramp Handling• Loading / unloading• Transport baggage/ cargo• Cabin cleaning• Push back• Toilet / water service• De-icing


15

Basics – From “Ten-Miles-Out” to “Off-Block”

Production – Chain (“A/C turnaround”)

1. Pre-Services

Check-In, Flight Preparation & Editing, Service- or Ticket-DeskActivities

2. VHF – Contact

Arrangement of Special Services requested (i.e. WCHR)

Information on Position & Airport restrictions

3. Preparation of the Apron Position (Provision of Equipment)Disembarking (Steps / Stairs with Busses or Air-Bridge)

Unloading / Inbound Transportation (PAX/Bags/Cargo)

4. Cabin Cleaning / Catering


Parallel activities desired –time optimization

16


Production – Chain

5. Ground to Cockpit Communication

Pre-Briefings (Weather, Route-Map, etc.)

6. Fuelling

7. Boarding / Loading / Outbound Transportation

Embarking

Finalized Load-Sheet / Slot Allocation (can also happen earlier)

8. Closure of Holds / Doors, Clearance of Position

Push-Back / Walk-Out-Assistance / Engine Start / Taxing

Airborne


17


Production – Chain – Staff

Loading teams (incl. Team leader)

Drivers (specialised)

Check-In Agents

Ticket Agents

Load Controller

Ramp Agent

Supervisor


Parallel activities desired –time optimization,

CON: cost!

18


Production – Chain – Equipment

Passenger Busses – special forms, suitable for roads

Stairs – self propelled, towable, with/without roofs

Conveyor Belt

High loader – main deck / lower deck

Container / Pallet Dollies

Baggage trolley- for bulk baggage

Container transporter

Towing tractor – with / without towbar

Toilet / Fresh water vehicle

Ground Power (GPU)

Air Starter (ASU)

Special Equipment (i.e. vehicle for handicapped people)


Utilization to be optimized,

CON: trained staff to operate!

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Basics - Ramp Handling and Equipment


20

Ground Handling Equipment


21

Equipment


22

Equipment


23

Airport Safety = Pax Safety = A/C Safety


24

Operations 24/7 – 365 days


2. Description of the Ground Handling Market

2.1. Market Size and Structure


Structure of Airline Costs & Development


Airline cost structure has changed over last decade

Fuel & Oil prices crucial

Airline concentrating on core business

GH makes up for ~20/25%

Market Size and Structure


Independents growth substantial

Airlines focusing on core business

Competitive landscape


Independent providers will gain market shares


Competitive landscape I


Competitive landscape II


Competitive landscape (1/2014)


Name Revenue Stations Ownerin Mio. €

Swissport International Ltd. 2,780 268 HNA GroupDNATA 2,405 75 Emirates GroupSATS 1,246 43 Stock listedMenzies Aviation 993 149 John Menzies plcFraport 695 1 Hessen, Frankfurt, LH, free flowWFS 580 115 LBO FranceAviapartner 378 30 3iCelebi ~ 300 34 Family ownedAcciona Handling ~ 250 8 Acciona Group

•Merger & Aquisition

•Market Entries & Exits

Boosting Competition

Market Clearance



Air Traffic behaves cyclical & is a volatile business

2.2. Liberalisation


What is Liberalisation?


LIBERALISATION …

…is any process whereby a state lifts restrictions on some private individual activities.

…occurs when something which used to be restricted is no longer restricted or when government regulations are relaxed.

…refers to the term most often used in relation to economic liberalization, which refers to the reduction of state involvement in the economy but can be used in other context as well.

…is e.g. when state owned airlines/airports are privatised.

“Ground handling services cover a wide range of services that are necessary to successfully manage an aircraft turnaround“

REGULATED (e.g.3/4/5/7)

NON- REGULATED (e.g. 1/2/6)

-Bag. Loading

-Bag. Unloading

-Bag. Transportation

•Baggage

-Cargo Loading

-Cargo Unloading

-Cargo Transportation

•Freight & Mail

-Fueling

•Fuel & Oil

-Parking

-Push-Back

-Stairs

•Ramp

-Boarding

-Check-In

-Lost Baggage

•Passenger

-Cleaning

-Cooling & Heating

•Aircraft Services

-Flight Preparation

-Crew Administration

•Flight Operations

-Organization

-Execution

•Transport

-Representation

-Load Control

-ULD Management

•Supervision

-Routine Services

-Non-Routine Services

•Maintenance

-Preparation

-Storage

•Catering

EU Directive 96/67/EC distinguishes eleven ground handling categories


“While airports and independent providers only serve airlines, airlines may provide services for themselves as well as others”

-Neither controlled by Airport or Airline

-Change from Local Providers to Global Companies

-Increasing Market Shares

Main Beneficiaries of Deregulation

•Independent Ground Handler

-Strongest Group

Highest Market Shares

-Either by

-Business Unit

-Separate Legal Entity

-Highest Cost Base

Public Service Tariffs

•Airports

-Traditionally Network Carriers

-Complexity of Network requires High Quality Level at Higher Cost Base

-Services often provided to Alliance Partners Economies of Scale

•Self-handling Airlines

Since the introduction of EU Directive 96/67/EC the market is under current

transformation


40

1st January 1998

Airline self-handling must be allowed

• for Passenger services at all airports

• for Ramp services (e.g. baggage loading, fueling) at airports > 1 m passengers p.a.

From 1st January 1999 / 2001

Third party handling at airports > 3m / 2 m pax p.a. or > 75 000 / 50 000 t of freight

Further:

• Access to central infrastructure at non discriminatory prices

• At least one service provider to be independent from the airport

• Separation of accounts of airport’s ground handling units from other airport business

• Selection of suppliers through tender process by a body independent from managing body of the airport

EU Directive 96/67/EC Oct 15, 1996

Liberalisation in the Ground Handling Market


“With the introduction of the Directive 96/67/EC, access to ground handling services at community airports has been gradually liberalized”

Self-Handling

- Freedom of self-handling

- Number of self-handlers can be restricted

-Restriction to one airline with Commission’s approval only

Third-party Handling

- No fewer than two parties per category

- One license to be granted to independent ground handler

-Effective choice between two suppliers

Selection of Suppliers

- Relevant, objective, transparent and non-discriminatory criteria

- Official tender; selected for a maximum of 7 years

-Installation of Airport User’s Committee

EU Directive 96/67/EC applies to airports with more than

- 2.000.000 annual pax

- 50.000 annual tonnes

for handling categories 3,4,5 and 7


“Today 10 out of 27 countries have fully liberalized the market. Most Member States made use of their right to restrict the number of suppliers”


“The introduction of Directive 96/67/EC mainly led to changes on prices, products, market shares and working conditions”

-Decreasing Manpower Requirement

-Flexible Staff Planning

Conflict with Nat. Labour Law

-Worse Contract Conditions

-Downward Pressure on Wages

Ground Handling Staff

- Avg. Prices Decrease: 12%

-“Thread of Competition”

Quality Increase

- Market Power with Airlines

Airlines

-Avg. Market Shares Decrease: 12% in Germany

-Diversification Trend

Sharpened Company Profile

-Importance of Service Level Agreements

-Optimized Processes and Efficiency

Ground Handling Suppliers


44

Influence on Handling Rate


45

Increasing competition


46

Development of competition and handling rates ...

1990 1992 1994 1996 1998 2000 2002

100

75

50

25

0

Competition – KLM– Aero Ground

Rates/ margins– rate increases

still possible– reasonable

margins

Competition: – KLM– Aero Ground– Ogden obtained license

Rates/ margins:– rates dropped dramatically

(from -20% to -60 % in some cases)

Competition:– KLM– Aero Ground– Ogden

Rates/ margins:– Stabilisation at „rock-bottom“– At best CPI correction– 1997 decline in large contracts

Competition:– KLM– GG AMS– Ogden– Dutchport– Aviapartner

Rates/ margins:– Further decline in

most big contracts – smaller contracts

stabilized

1/1999EU Directive effective

The AMS Case

Competition:– KLM– GG AMS– Ogden– Aviapartner

Rates/ margins:– Slight increase

in big contracts – Larger increase in

smaller contracts


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The AMS Case

Limited competition leads to unbalanced situation between airlines and handlers

Competition needed for permanent productivity improvements

With unlimited liberalisation handlers overestimated market opportunities

Airlines benefited short-term with low prices at the price of

lower service standards

Loss situation leads to market consolidation with substantial price increase

To achieve profitability, rates have to increase further

Painful process to find the right number of handlers to perform quality services at reasonable, cost covering prices


“The revision of the directive aims to increase competition, as well as performance in terms of delays, costs, environmental and impact and safety”

• Third-party & Self Handling

- No fewer than THREE parties per category at airports with more than 5.000.000 annual pax

- No fewer than TWO parties per category at airports with less than 5.000.000 annual pax

- Right to Self-Handle

• Staff Provisions

- Right of Member States to impose Transfer of Staff

- Ground Handling Companies to prove Staff Qualifications

• Selection of Suppliers

- Harmonized Approval Requirements

- Flexible License Period; 7-10 years

- Organizational Separation of Ground Handling Divisions of Airports

Process was stopped by EU in 2014


“A well-functioning duopoly is better than a non-functioning open market with low quality levels and pressure on working conditions”

CURRENT SITUATION

• Difficult to operate profitably since the introduction of directive 96/67/EC

• Price decrease of up to 30%

• Monopolies still exist

• Pressure on staff conditions has been increased

FUTURE OUTLOOK

• More competition will lead to decrease in quality

• Lack of “Capacity” will decrease efficiency and productivity levels

• Safety issues will increase on the apron

• Pressure on staff wages will further increase Outsourcing of services

• Staff fluctuation could lead to security issues

Airports


“Airlines fear that Germany will lobby to protect the interests of the airports and fear that competition will not increase in the short-term”

CURRENT SITUATION

• Situation in Germany is outdated

• “Bigger” Airlines do not have a real choice

• Handling charges have decreased

• Increase in competition led to increase in quality

• Customer services became main focus of handling providers

• Lack of choice within Germany (3 dominant players)

FUTURE OUTLOOK

• Complete opening of the market demanded in the long-term

• Individual limits at airports

• No minimum quality standards necessary

• Minimum wages and more flexible labourlaws could increase staff dismotivation

• Organizational separation of ground handling division from airport company is a must

• Binding decision in the Airport User’s Committee demanded Airlines


“A well-functioning duopoly is better than a non-functioning open market with low quality levels and pressure on working conditions”

CURRENT SITUATION

• Current framework is working fine

• Administrative efforts and time limitation use up benefits

• Security and safety requirements by European Commission are considered sufficient

FUTURE OUTLOOK

• Complete liberalization is too muchSlow and steady deregulation

• Higher threshold for third license demandedOtherwise pressure on prices

• Decreased entry barriers will lead to quality problems

• Transfer of staff could lead to problems in daily operation

Independent Ground Handling Companies


2.3. Outsourcing


53

Increased competition (e.g. LCC) and cycles in the aviation industry force airlines and airports to reduce internal and external costs by:

Changes in customer expectations in the Ground Handling Market

optimizing in-house processes

concentrating on core business

Outsourcing of all non-core activities


54

Reasons for Outsourcing

• Market pressure through liberalisation

• Cost reduction

• Focus on core business

• Financial pressure

• Efficiency

• Risk reduction (profitability, margin drop)

• Less competitive (airline cost structure)



Outsourcing – Airline perspective

55

• 3rd party handling mainly important in home / hub airport

- To reduce unit cost

- Based on marginal cost additional income

• Airlines handling in home markets quite often a historicalmonopoly before liberalization

• Difficulty to be competitive with airline cost structure

• 3rd party handling less important outside of home markets

Outsourcing – Airport Perspective


• Is ground handling a core activity for airports?

• Tendencies towards concentration on airport- and facility Management

• Gradual outsourcing of handling units expected

• Growing competition and concentration reduced margins

• Difficult to meet competetion effectively with sometimes monopolistic cost structure

57

Areas of Outsourcing

Ramp @small outside market

Ramp @medium outside market

Pax @outside market

Cargo warehouse @small/ medium outside market

Ramp / cargo @hub airport

Airlinecore

business

Pax @hub / home airport


60

Difficulties - Airline’s View

• High number of staff to be taken over

• Difficult transfer - employee acceptance

• Omission of strikes

• Change in salary conditions

• Operational interferences

Gradual implementation of change(2-3 years until full cost benefit is achieved)



Difficulties: Handling Agents’ view

• Market acceptance

- Strong dependence on one carrier

- Possible interference with existing 3rd party business

• Integration process

- Transfer problems

- Cultural fit

- Using synergy potential

- Economic benefits

2.4. Standard Ground Handling Agreement


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IATA Standard Ground Handling Agreement

• Base for all business relations between airlines and ground handling companies is the IATA Standard Ground Handling Agreement (SGHA)

• The agreement consists of

– Main agreement (Standard of work, Remuneration, Duration, Modification and Termination)

– Annex A (Description of services)

– Annex B (Scope of services and charges at each location, variations from standard main agreement, additional SLA, bonus-malus agreements etc.)


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• Main agreement and Annex A are concluded only once between Airline and Ground Handling Company

• Annex B is signed for individual locations

Main agreement Annex A

Annex B

FRA

Annex B

CDG

Annex B

LHR

Annex B

CPH

Annex B

ARN

Annex B

JFK

Annex B

ORD


65


• Due to the high load of paperwork the IATA has established a ‘Simplified Procedure’:

Under the preamble that both parties know and agree to the

standard main agreement and standard Annex A, only

Annex B has to be concluded.

• The IATA Standard Ground Handling Agreement (Main Agreement) is updated and adjusted typically every five years

• April 2018, DOH at the IGHC (IATA Ground Handling Conference)


66



67

Description of Ground Handling Services (Annex A)

Representation and Accommodation

Load Control, Communications and Departure Control System

Cargo and Post Office Mail

Aircraft Servicing

Ramp

Unit Load Device (ULD) Control

Passengers and Baggage


68

Description of Ground Handling Services (Annex A)

Fuel and Oil

Aircraft Maintenance

Flight Operations and Crew Administration

Surface Transport

Supervision and Administration

Catering Services

Security


69



70



3. Technological Development & Status in the Ground Handling Business


72

Technological development in Ground Handling

In general: Shift from manual work to automated work

• Airport Facilities (Boarding bridges, Fuelling systems)

• Faster, closer and saver communication between aircraft and ground

• Bar-coding technologies for baggage and cargo tracing

• Faster loading and unloading through use of ULD

• Baggage reconciliation systems (BRS)

• Central Load Sheet


73

IATA Program: „Simplifying the business“

• Main topics

– E-Ticketing (ET) 100% mid of 2008

– Common Use Self Service (CUSS)

– Bar-Coded Boarding Pass (BCBP)

– Radio Frequency ID (RFID)

– IATA e-Freight in progress

• The target is to save in the industry 6.5 bio. US$ (e-ticketing only 3 bio. US$)

• IATA supports this program in different ways


74

e-freight


75

Check-in mode - Forecast 2004 - 2008

Desk (65%)

Desk (20%)

CUSS (30%)

-

500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

2,500,000,000

Y2004 Y2005 Y2006 Y2007 Y2008 Y2008 +

Full Desk Check-in Airline Dedicated SS CUSSHome printed BP - No Baggage Home printed BP - Baggage


Check-in mode Development

76

CUSS – Common Use Self Service

Moves from a single Airline kiosk…

… to Airline selection on a single kiosk


77

Self Check-In Terminals


78

Barcode Technology

• ATB2/MagStripe Technology is in fierce competition with

– Internet/Home Check-In

– High cost of the “magstripe” because of a monopolistic market

– Typical price for a ATB2 printer 2.500 €

– ATB 1 printer are available for 700 €

• Barcode Technology was delayed because

– Through-Check-In requirements

– Lack of standards – already solved

• 2D Barcode has the same storage capacity as “magstripe”

• Barcode technology is a part of the IATA Initiative “Simplifying the business”


79

Bar Code Technology

• Project calculations highlight savings of minimum 40% on the investments

• Lower maintenance costs

• Lower costs for boarding passes

• Fit for internet check-in

• Boarding Control via Bar Code reader

• CUSS kiosks – can operate with ATB2 as well as barcode

• Bar Code useful for check-in via mobile phones


80

Bar Code Technology


81

RFID baggage tag

• Move from barcode baggage tag to RFID baggage tag

• Advantages

– Passengers: better service because of reduced baggage mishandling

– Airlines: Reduction on costs out of mishandling and compensation

– Airports: faster baggage handling

– Handler: higher productivity because of faster “baggage reconciliation”

• IATA: 15% of Bag Tag Barcodes are read incorrect, with RFID reduction to about 1%

• Slow acceptance because of

– High investment (Reader for sortation and Reconciliation, Software)

– Costs for baggage tags with RFID chip (US$ 0.21 in December 2005)

– Different RFID Regulations in different countries

– Possibly lack of “private sphere”


82

IATA e-Freight• Air cargo is much more complex with additional paperwork

compared to passenger transportation

• Target: Reduction on “Paper” volume

• Advantages:

– Airlines: reduction of costs, higher data quality

– Shipper/Consignee: higher efficiency and reliable process chain

– Forwarder: higher productivity

– Customs: reduced costs, better processes, information up-front

• IATA founded Industry Action Group (IAG)

• Biggest challenge: electronic customs declaration because of lack of international standard


83

IATA e-Freight


84

Equipment for the apron

• Towbarless push-back tractor

• Remote controlled push-back tractor

• Bulk loading into cargo holds with „Ramp Snake“

• Reduction of equipment costs

–„well fitting“ equipment = cost efficient equipment

–Right volume of equipment

–New vs. Second hand equipment

–Buy or Lease


85

Baggage Sortation


86

Baggage Sortation


87

Baggage Sortation


88

Baggage Sortation


4. Globalisation


90

Three forces are behind the increase in globalisation

Changes in Customerexpectations

Deregulation andLiberalisation

Technological Progress



Globalisation – Benefits and Risks

Benefits:

• Globalisation as a mean to achieve higher levels of profitability, productivity and efficiency

• Employees achieve a higher awareness of the company - to be part of a global player

• Customers can rely on the expertise and the quality of a worldwide network

• Shareholders benefit from the use of synergies within a global network

Risks:

• Difficult integration of various nationalities, mentalities, cultures and languages

• Difficulty in efficiently coordinating the network activities

• Loosing clear strategic focus by opportunistic market approaches


Customers’ demand for single sourcing

• As customers begin to aim for global solutions their requirements and preferences have changed. Operating on a global basis requires their provider’s attention also on a global scale

• Focus has to be shifted from single airlines to alliances

• Alliances are looking for one supplier at each airport serving all partner airlines (Single Sourcing)

• Alliance partners are limited in the choice of their ground handler (e.g. Scandinavia)


Changes in customer expectations


Networks create substantial synergy potentials


Internationalisation Strategies

Decision must implement more than just the cost dimension

• Necessity of high or low coordination of the company elements

• Centralisation versus decentralisation (e.g. organisation of the company)

• Individualisation versus standardisation (e.g. products, services, processes, Marketing strategies)

• Election of appropriate business system (subsidiary, joint-venture, cooperation, franchising, etc.)

• Strategies concerning ownership (majority / minority)

5. Success Factors like

Key Account Management andQuality/Safety Management


97

Intensifying and taking care of customer-relationships

Focusing on Key Accounts (Key Customers)

Generation of tools and processes for the customers and customer groups

Define Long-term partnerships with Key Customers

Success factor Key Account Management

Functions and goals

Dependence of partly turnover of the Key Accounts to the entire turnover of the company

20-80 rule: 20% of the customers generate 80% of the turnover

Next to quantitative relevance, image, reference or technological potentials are important

What are Key Accounts ?


98

Centralised KA-Management

- Central office

- Long decision making processes

- Focus is on maximisation of the group profit

- Short-term market tendencies are difficult to meet and specific customer needs are difficult to satisfy

Decentralised KA-Management

- Decentralised profit centres

- Focus is on profit maximisation of a single company/ location

- Target of group are not taken into consideration

Centralised versus decentralised KAM



99

Benefits

- All company units are represented by one department to the customer (one-face-to-the-customer)

- One manager can sell all services at all airports

- Customer has one specific person to turn to

- Only Key Accounts

- Regional customer still handled by local profit centre

- Target: Development of stable long-term relationships with the top customers

One Face to the Customer / One Stop Shopping



Quality and Safety Management


101

Important determent for cost-and-time-aspects

Direct relation to the customer satisfaction

Many companies generate Quality-management systems (e.g. implementation of Quality-management systems through DIN ISO 9000ff or Total Quality Management (TQM))

- To meet customer needs

- To safe internal costs

- To meet time schedules

- To expand market share

Success factor Global Quality Management


102

Module 1: Staff Preparational Meeting

Module 2: CarriersWhat do you want from your Handling Company?

Module 3: StaffCan they achieve what you are asking for?

Module 4: CarriersReceive offer for standards / agreement

Module 5: Ground HandlerTips on the implementation process to the Management

Success factor Global Quality Management


103

RAMP SERVICES DEPARTURE FLIGHT:

DATE: FulfilledY N

1 STD - 120 min.2 STD - 60 min.3 STD - 60 min.4567 ETD - 10 min.8

Comments: Checked by:

AHS 1000 check sheet in practice


104

Operational Key Performance Indicators

• Operational data– Number of handled flights/passengers

– Tons of handled cargo import/export

• Aircraft Damage– Number and reasons of damages

• Customer Complaints

• Delays – Delay Codes

• Passenger Arrival Services (first bag – last bag on belt)

• Passenger Services (counter opening/ closing, queuing passengers)

• Ramp Handling

• Environment (Oil/gas consumption)


105

KPI in Practice: Fibag/Labag Minutes

0123456789

1011121314151617181920

January

Febru

ary

Marc

h

April

May

June

July

August

Septe

mber

Oct

ober

Nove

mber

Dece

mber

Ave

rage

First bag GGF Last bag GGF First bag Competitor Last bag Competitor


106

KPI in Practice: Queing Times Minutes

0123456789

101112131415

Jan

ua

ry

Fe

bru

ary

Ma

rch

Ap

ril

Ma

y

Jun

e

July

Au

gu

st

Se

pte

mb

er

Oct

ob

er

No

vem

be

r

De

cem

be

r

Ave

rag

e

C-class

M-class

Charter


107

ISAGO

IATA Safety Audit


108

ISAGO

IATA Safety Audit


109

ISAGO

IATA Safety Audit


110

ISAGO

IATA Safety Audit


111

ISAGO

IATA Safety Audit


112

IATA Safety Audit


http://www.iata.org/whatwedo/safety/audit/isago/Pages/index.aspx

113

IATA Safety Audit


Content:

• Auditors work with Checklists GH has to proof that there is a SOP (Standard Operating Procedure) or else Referencingdocument for each of the items on the list

• Duration 4 days in general (2 days SOP + 2 days OPS), 2 days for renewal

• People involved at GH: e.g. Regional Manager, Department Head of each area (Stationmanagement, Ramp handling, Pax handling, Load Control, Training)

• ISAGO Audit is not mandatory, but serves as a means ofreputation

• GH „applies“ for an audit Pool Airlines make an appointmentfor conducting the audit at the GH

114

IATA Safety Audit


• Upon an audit GH Providers have to provide all procedural documents related to their services offered, e.g.

• Passenger Services

• Ramp Handling

115

6. Budgeting and Reporting


116

Contents

• Cost components / Cost structure

• Budget of a G/H Company

• Reporting

• Staff/Equipment Volume calculation


117

Revenue components

• Revenues

– Types of revenues

• Handling as contracted

• Additional workload (e.g. GPU)

• Cargo Handling and warehousing

• Ticket Commission

• Deicing

• Baggage delivery

• Other Services

• Cute/Codeco charges if not included in handling rates


118

Revenue components

• Revenues

– Problem of complete registration of all events and all work

– Process chain:

• Importance of real time control of all work

• Direct input out of existing contracts (rates and work)


119

Cost components

• Cost of sales

– Subcontracted Handling like cleaning

– Deicing fluid

– Cute/Codeco charges

– Support from third party e.g. for baggage delivery

Revenues ./. Cost of Sales = Gross Margin


120

Cost components

• Expenditures 1

– Wages and salaries

– Subcontracted labour

– Social costs

= COL Cost of labour

• Expenditures 2

– Equipment Maintenance

– Equipment running

– Hired equipment

– Other eqmt costs ( e.g. IT etc.)

= Total equipment cost


121

Cost components

• Expenditures 3

– Rent

– Rates

– Heat, Light

– Cleaning

– Repair

= Property costs


122

Cost components

• Administration

– Concession

– Insurance

– Recharged overheads from headquarter

– Marketing and sales

– Depreciation

– IT

– Training

– Travelling

– Telephone and communication

– Auditor and lawyer

– Etc.


123

Budgeting

• Budget example

– Either based on last years forecast

– Or white paper budget

• Consists of

– Profit and loss account

– Seasonalisation per month

– Cash flow statement per month

– Balance sheet per month

– Capital expenditures (Capex)


124

Reporting

• Monthly reporting

– Budget vs actual

– Month and cumulative

– Financial KPI

– Yearsend forecast

– Revenue and cost components comparable to budget

– Graphs

– Explanations


125

Reporting example


126

Reporting example


How to calculate the necessary volume of staff and equipment?


128

Basics – Staff and Equipment Planning

Basis: Schedule of the airlines handled (STA, STD, AC-Type, in/out nightstop)

Calculation:

Manually for small operations

With the support of IT Tools e.g. Excel-based

Extensive IT support with detailed considering specialities of the

respective airport (SABRE, INFORM etc.)

Procedure

Clustering of AC with same requirements regarding g/h

Fixing of time the equipment or staff is tied with the g/h of an AC

Manual shift input (number of staff, shift length)

Input of absence days per employee and year

Calculation and output as charts and spread sheets


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Schedule


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Equipment


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Aircraft on Ground


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Necessary Equipment


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Staff


134

Shift Planning



Shift Planning

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Advantages of „State-of-the-Art“ Planning & Control IT-Solutions

• Collects and displays all relevant data in a single system

• Takes care of the allocation routine work

• Helps the allocator to concentrate on the real problems

• Can communicate the allocator‘s decisions automatically to

the staff

• Generates data for Invoicing, Quality Management, Statistics

and Business Intelligence


Ground Handling

Documents

Transcript of Ground Handling