www.airlinergs.com WINTER 2019

Ground handler focus Route Development AGS Global Networking Airport Spotlight A look at the current fortunes Regulation and congestion Summit Vienna International Airport of Swissport and Menzies set to have impact Review of this year’s event at and San Bernardino Heathrow Published by: EVA International Media ltd Boswell Cottage, 19 South End, Croydon, , CR0 1BE, UK Welcome to the Winter 2019 edition of Airline on climate change, predictive technology RoutesEditor’s & Ground Services. andNotes employee satisfaction, in a wide-ranging Tel: +44 (0) 20 8253 4000 Fax: +44 (0) 20 8603 7369 examination of the Swiss ground handling This magazine aims to explore the changing giant. www.evaintmedia.com impact of climate, consumer habits and technology on airline routes and ground Justin Burns tackles the topic of gender Printed by: services, and how companies respond to this. diversity in aviation, talking to Nikki Ozols The Manson Group Limited and Tammy McKenzie, two key figures at TUI St Albans, Hertfordshire, This issue features a one-to-one interview Aviation, about their thoughts on the matter. AL3 6PZ, UK with Finnair’s Chief Commercial Officer, Ole Distributed By: Orvér. He shares his thoughts on recent route Meghan Ramsey investigates the services for Air Business developments, strategic partnerships and a passengers with restricted mobility (PRM) INDIA The Merlin Centre, Acrewood green aviation agenda. at Atlanta and Heathrow Airports, looking Way, St Albans, AL4 0JY, at issues such as technology and an ageing We have a European low-cost carrier (LCC) population. overview, with a focus on and Norwegian. Using two different models, these George Anjaparidze takes a look at the airlines look set to face contrasting fortunes Carbon Offset and Reduction Scheme for Join the conversation Twitter: @args_eva as we move into the new year. International Aviation (CORSIA), and what this Linkedin: /args-magazine means for the aviation industry in the short- Route development in this issue focuses on to-medium term. Advertising opportunities the Americas, noting how regulatory restraints Contact Humza Raja on and growing airport congestion could both And finally, a report by engineering firm + 44 (0) 20 8253 4005 come to have a significant impact on airline Thornton Tomasetti and not-for-profit activities in the region. Resilience First examines the ways in which airport communities can change and adapt to Issue 30 2019 Our airport spotlight this issue is on Vienna maximise their potential in a changing world. https://airlinergs.com/ Airport and Luxivair San Bernadino, covering topics such as airport competition, employee I hope you enjoy reading this issue. Content may not be strike action and drone threats. reproduced in any format without written permission from EVA International Also included in this issue is a review of the Media Ltd AGS Global Networking Summit 2019, an event which saw a multitude of ground service providers come together to discuss the state Centralized Load Control Address changes and and future direction of the industry. subscriptions: [email protected] Speaking of ground service providers, this ISSN 2516-8002 issue features an exclusive interview with Menzies Aviation CEO Giles Wilson, touching

L R EVA INTERNATIONAL MEDIA LTD on issues such as innovation, the green PUBLISHERS & EVENTS SPECIALISTS L R L R revolution and market consolidation. William Hayes

L R L R

L R Swissport Senior Communications Manager Editor Stefan Hartung has some interesting insights [email protected] Zero fuel Planning Loading confirmation Ramp clearance Final ACARS Post departure The opinions expressed in this publication are those Constant ZFW monitoring Real time monitoring of load activities Load sheet issuance of the individual authors or advertisers and do not Efficient load planning Post-departure activities and follow-ups necessarily reflect those of EVA or its members. James Sheridan Humza Raja Charlotte Willis Chairman Sales Manager Office Manager The mention of specific [email protected] [email protected] [email protected] Operational excellence worldwide companies or products in articles or advertisements contained herein does not Due to the consistent growth in business over the past years, we are proud to announce the opening of our imply that they are endorsed Parveen Raja Gemma Keen Jordan Newton Centralized Load Control office at New Delhi, India. Our state of the art facility is designed to provide or recommended by EVA. Publisher Events Coordinator Graphic Designer comfortable and safe working environment and is equipped with the latest technology features to provide the [email protected] [email protected] [email protected] services in an undisrupted and safe manner. Megan Ramsay For more information visit qataraviation.com [email protected] Shobhana Patel Nenad Panic Graham Newton Head of Finance Graphic Designer George Anjaparidze [email protected] [email protected] Editorial Contributors Contents Winter 2019

View from the airports 18

12 08 Spotlight on the Americas Airline interview: Finnair chief operating officer Ole Orvér

04 Airline interview: Finnair chief 24 AGS Global 40 Passenger experience: passengers operating officer Ole Orvér Network Summit with restricted mobility (PRM) Finnair outlines how its long-haul Airlines and ground handling The need to provide PRM services is network strategy of focusing on Asia professionals had a chance to discuss growing as the population ages, but how and, to a lesser extent, on North key industry issues at the AGS Global well-equipped is aviation to deal with the America, is paying off. Networking Summit in London in problem? ARGS examines the issue at two September. airports. 08 European LCC Focus: 30 Ground handler focus: 44 Change of Norwegian and Ryanair Menzies Aviation CORSIA Norwegian and Ryanair are among ARGS examines the fortunes of The Carbon Offset and Reduction Scheme for Europe’s biggest LCCs, but both face Menzies Aviation a year after International Aviation (CORSIA) addresses the challenges in 2020. branching out as a standalone ground issues of CO2 emissions in aviation, but how handling business. effective is it? ARGS investigates. 12 Spotlight on 32 Ground handler focus: 47 Resilience in airport the Americas Swissport communities ARGS takes a look at the big network Following its successful debt The resilience of several airports and challenges and opportunities across the refinancing in August, Swissport looks their surrounding business communities Americas region. to have several interesting projects on is examined by engineering firm Thornton the – ARGS takes a closer look. Tomasetti and not-for-profit Resilience First. 18 Views from 36 Women in the airports aviation Under the spotlight in this issue are Vienna Gender diversity in aviation is a hot Airport and San Bernardino. topic, and two high-ranking women at TUI Aviation share their experiences of working in a male-dominated industry. FULL-SERVICE CARRIER FULL-SERVICE CARRIER

Q&A with Finnair’s chief commercial officer, Ole Orvér Finnair’s investment in a fleet of more eco-efficient Airbus A350s and its partnership with fellow carriers is helping the Helsinki-based carrier realise its ambitions of connecting Europe with an ever-wider set of Asian destinations, writes David Smith.

How has your geographical position influenced route Ole Orvér, development over the past few chief commercial officer, Finnair years?

Helsinki occupies a unique position on the flight path between Europe and Asia. On average, flight times via Helsinki can be more than two hours shorter than flights from other European hubs with our competitor carriers. In some cases, flights are four hours quicker compared to flights from hub airports in the Middle East. This has powered our strategy to focus on Asia.

Helsinki Airport also supports the growth of traffic between Asia and Europe thanks to its three runways, quick connection times from as little as 40 minutes, and relatively uncongested airspace. These conditions make has also made a significant contribution routes and a record summer, carrying 4 with judicious growth and are looking Helsinki Airport ideal for customers to Sapporo, in December 2019. Finnair’s “ to revenue. Finnair is a member of the million customers, compared to 3.7 million forward to launching new routes to Japan connecting between flights. This short-haul fleet has continued to grow Atlantic Joint Business in partnership with by Q3 2018. Revenue increased by 7.9 in December and Busan in South Korea advantage features prominently in our to meet the demand for transfer traffic Finnair has made American Airlines, (BA) and per cent to €870.3 million and capacity next March. marketing and PR approach. onto our expanding long-haul route Iberia on flights across the Atlantic and the increased by 9.5 per cent. We have also network. a significant Siberian Joint Business with Iberia, BA and seen an increase in market share in both Is Finnair pushing a greener aviation Have recent route developments investment in new Japan Airlines on flights to Asia. Asian and European traffic. Ancillary sales agenda? been successful? How have strategic partnerships grew by 8.8 per cent, slightly faster than helped Finnair? more eco-efficient Has Finnair performed well this year? passenger revenue which rose by 8.7 per We want Finnair to contribute to a more Our route network strategy, focusing cent. Profitability has been affected by sustainable aviation industry and future. on Asia and, to a lesser extent North Our membership of the Oneworld aircraft. Our Airbus Finnair has continued to expand its higher fuel costs, adverse exchange rates, a The launch of our Push for Change carbon America, has paid off. Finnair now alliance has enhanced our ability to offer operations despite strong headwinds in 10.9 per cent rise in operating costs and a offsetting and biofuel initiative is our latest operates to 19 destinations in Asia, a wide choice of routes and pricing A350 fleet is key to what has been a volatile year for many in 3.9 per cent weakening in the global cargo move in this direction. Finnair customers eight destinations in the Americas and options. It has helped to increase our the aviation sector. Our Q3 results were market. As expected, demand on some of can now offset the CO2 emissions of more than 100 across Europe. Offering global network to more than 1,000 Finnair’s strategy broadly in line with our expectations. our Asian routes has fallen, most notably their flights by supporting CO2 emission more routes to Japan than any other destinations in more than 160 countries. and ambitious Growth continued and our market share Hong Kong. While concerns over Chinese- reduction projects or help to buy biofuel European carrier, Finnair is getting set Finnair’s membership of Oneworld, increased, with a strong performance in US trade relations have also impacted for a future flight. We flew our first two to launch its fifth Japanese destination, along with our strategic joint businesses, expansion plans. European traffic, new North American demand we are steering Finnair forward biofuel flights supported by the Push for

4 Airline Routes & Ground Services | Winter 2019 Winter 2019 | Airline Routes & Ground Services 5 FULL-SERVICE CARRIER

The A350 is about 25 per cent more fuel by 2023 – has been extremely positive our transformation efficient than older similar generation aircraft and helps drive passenger numbers. Focusing on fuel efficiency, in tandem with optimising flight speeds and altitudes and ON THE GROUND reducing aircraft weight, is also helping us combat CO2 emissions. We are now saving 450 tonnes of fuel a year by removing 150kg of weight from the A350 following your advantage a recent cabin reconfiguration. Smaller actions, such as using recycled plastics in IN THE AIR our amenity kits is similarly helping reduce plastic waste by almost 4,500kg per year. Our sustainability strategy is making a significant contribution to our bottom line.

How is Finnair’s success linked to wider developments in the local economy and growth at Helsinki Airport?

Helsinki Airport’s continued growth is Finnair has 14 A350s currently in its fleet essential for Finnair’s ambitious expansion plans. The airport is preparing to serve up to 30 million passengers in the future. With three runways, Helsinki Airport reduces the need for aircraft to be held in holding patterns, thereby reducing fuel burn and emissions. Enhancing the airport, with investments in new digital services, ensures Finnair customers can transfer easily and quickly between aircraft and continue choosing the airline.

What are Finnair’s future ambitions?

Our route network includes more than 100 European destinations, 19 in Asia and eight in America. From November onwards, we will increase frequencies to Beijing, launching flights to the new Beijing Daxing International Airport. Alongside existing Change initiative this summer. As an airline strategy and ambitious expansion plans. flights to Tokyo, Osaka, Nagoya and championing sustainable and responsible We were the first airline in Europe to Fukuoka, we are launching flights to our aviation, we remain committed to the take delivery of the A350, which offers fifth destination in Japan, Sapporo. And common goals of the aviation sector to our customers enhanced comfort from March 2020, flights to Tokyo will be halve CO2 emissions by 2050 and achieving and capacity in cabins featuring our boosted with the launch of services to the carbon neutral growth by 2020. Nordic design elements. The A350 also city’s Haneda Airport, in addition to Narita contributes to our drive for greater Airport. We also recently announced that +263 242 575137-9 Are you investing in greener aircraft? efficiency and sustainability. The A350 is we are opening a second route to South leading ground handler in zimbabwe about 25 per cent more fuel efficient than Korea next summer – making Finnair the www.nhszim.com Finnair has made a significant investment older similar generation aircraft. Customer only European airline flying non-stop to in new more eco-efficient aircraft. Our feedback on the 14 A350s currently in the Busan, the second largest city in South • Passenger Handling Services Airbus A350 fleet is key to Finnair’s fleet – with another five to be delivered Korea. • Ramp Handling Services • Cargo Handling Services • VIP/ Charter Handling 6 Airline Routes & Ground Services | Winter 2019 • Freighter Handling LOW-COST CARRIERS LOW-COST CARRIERS

for Norwegian in 2020/21. This is partly ever. But all the new planes demanded “ Mixed fortunes down to his admiration for the business additional running costs and many of its approach of acting CEO Geir Karlsen, who 787s have had to be grounded for engine Against took control this summer. Karlsen had repairs. Further financial stresses came Amid challenging market conditions in Europe, Ryanair and Norwegian face already been working on the company’s when its 18 737 Max aircraft had to be the current very different challenges as they prepare for next year, writes David Smith. finances for a year. taken out of service in March. background “Karlsen’s plan is to move from growth Despite the setbacks, Norwegian remains at any cost to a more measured business confident that the long-haul model is perhaps the only Two of Europe’s largest low-cost model. A slower rate of growth will be working. The airline will be increasing the European airlines face very different more stable and not expose the company number of services it operates to the certainty is that outlooks for 2020. There is heated debate in the industry about the suitability of to the additional risks that come with new US next year, including introducing daily Norwegian’s long-haul model for low-cost airlines routes,” said Tarry. flights to San Francisco in the summer uncertainty will Ryanair looks likely to overtake of 2020. Other routes getting beefed up this year as Europe’s biggest airline Tarry also believes Norwegian’s long-haul include London Gatwick to Austin and to increase. It’s by passenger numbers. Meanwhile, model is working well despite the “heated Denver, both of which will get four extra Norwegian, Europe’s third largest low- debate” in the industry about its suitability flights. Meanwhile, its Gatwick to Tampa time to hold on cost airline, has been struggling under the for low cost airlines. The airline exploded service will have three more flights. weight of enormous debt. in popularity when it offered flights for a bumpy ride between US cities on the east coast and Matthew Wood, SVP commercial at “They are very different businesses. European airports. Norwegian, said the expansion was in Ryanair is very established as a short-haul line with the company’s strategy of carrier and generates a lot of cash. It flew Beginning its low-cost model in 2002, it concentrating on key routes across where more than 85 million people in the first became one of the fastest-growing airlines there was strong demand. half of the year and has built a successful model,” said Chris Tarry, founder of the aviation consultancy CTAIRA. “Meanwhile, Norwegian has a large debt burden, but I have become more optimistic recently UGANDA CIVIL AVIATION AUTHORITY about its prospects. I think it has turned a corner by developing a more measured +256 312 352 000 Airport Road-Entebbe business model.” [email protected] P.O.Box 5536 Kla

Even the bosses of the low-cost behemoth that is Ryanair have admitted that they expect a slowdown in 2020/21. In July, the company cut its growth subsidiary, , that will fly to more Ryanair Group CEO Michael O’Leary To maintain the highest ambitions for next summer from 7 per than 60 destinations across Europe certainly thinks so. cent to 3 per cent. and North Africa next year. It won’t be standard of safety, Ryanair’s first subsidiary. Since March In early October he said it was “bound security & service In October, Ryanair said it expected to 2018, it has run the Austria-based airline to go bust sooner or later” and was carry 157 million passengers in 2020/21, , and also owns Poland-based , “doomed”. O’Leary’s argument was that in Civil Aviation which would be a rise of 2.4 per cent. The which begins operations this autumn with Norwegian was saddled with too much downgrades are partly due to delays in the a fleet of 25 aircraft. It has also established debt to survive. arrival of 210 Boeing 737 Max aircraft, as a UK subsidiary - Ryanair UK - as an THE FUNCTIONS the airframer seeks regulatory clearance insurance policy against a hard Brexit. He noted that Norwegian had resorted to to fly the planes again following updates selling five aircraft to raise US$50 million to flight control software. Boeing hopes Last year, Lufthansa was Europe’s largest to keep the business afloat. This summer Licenses operators and Coordinates & directs Establishes, maintains, operates, for a green light from the US Federal airline with 142.3 million passengers, but the Oslo-based carrier also had to ask aviation crew search and rescue services and owns aerodromes Aviation Administration by the end of this Ryanair was closing in fast on 139.2 million bondholders for a two-year extension in Provides air navigation Certifies operators and Carries out functions as required year. passengers. It has a fleet of 439 aircraft repaying two bonds, totalling $380 million, services aircraft by government or any other law and orders for a further 260. which were about to reach maturity. Ryanair, however, remains a dynamic and relatively stable presence in European On the face of it, the prospects of But Tarry disagrees with O’Leary’s dismal aviation. It will launch a new Malta-based Norwegian for 2021 seem much bleaker. prognosis and sees brighter prospects caa.go.ug Awarded ITC Government Agency of the year 2019

8 Airline Routes & Ground Services | Winter 2019 LOW-COST CARRIERS

“The approach is similar to what Ryanair said it expected to carry 157 million Virgin [Atlantic] achieved on routes in passengers in 2020/21 competition with British Airways 30 years ago. It’s about pulling demand away from the established carriers and the CAA [Civil Aviation Authority] data suggests it’s working for Norwegian,” said Tarry.

Although he has some faith in the 2020/21 performance of both Norwegian and Ryanair, Tarry says the market will continue to remain volatile, highly competitive and unpredictable. Since 2017, the European market has seen a number of closures, including Aigle Azur and XL Airways in France, Icelandic carrier Wow Air, Germany’s Germania and Air Berlin, the UK’s and Monarch, Denmark’s Primera Air and Lithuania’s Small Planet Airlines.

To some extent, there has been market consolidation. In its 2019 report Tackling Headwinds, KPMG suggested that the bankruptcies of Alitalia, Air Berlin and Monarch within a short space of time in 2017, had only had a “muted” impact. The aircraft were taken up by other carriers, Meanwhile, the US economy was forecast “ mainly in Europe. But Tarry still expects to grow at 2 per cent compared to 3 per to see more airline failures as the 2015- cent in 2018, while China’s growth was Last year, 16 period of peak profits for the low- forecast to slow to 5.7 per cent from 6.6 costs has long passed and the market is per cent. The euro area was predicted Lufthansa was struggling with over-capacity. to grow at 1 per cent compared to 1.9 Europe’s largest per cent in 2018. Tarry said: “The risk Making firm predictions for the 2020/21 is very much on the downside which is airline with 142.3 low-cost market in such a volatile time for likely to result in further reductions in the world economy is difficult, Tarry says. expectations as we move into and through million passengers, But there are four key factors to consider: 2020.” but Ryanair was GDP, fuel, currency and capacity. The volatility in the oil price remains closing in fast The current position on economic another unpredictable factor. A year prospects, he says, was well summed up ago, Brent oil was at some $80 a barrel on 139.2 million by the OECD’s chief economist Laurence and is now closer to $60, but the price passengers.” Boone in September when she noted has fluctuated widely. There are also that “growth was taking a dangerous challenges in getting enough capacity to downturn.” maintain all routes, not least because of the delays in 737 Max deliveries. The OECD report highlighted that in mid- 2018, GDP growth for 2019 was expected “There should be no doubt that the to be some 4 per cent, but on the basis underlying operating environment has of their own latest forecasts the expected again become more challenging. Against outturn for 2019 had fallen to 2.9 per cent. the current background perhaps the only International trade, which grew by some certainty is that uncertainty will increase. 4 per cent in 2018, was also expected to It’s time to hold on for a bumpy ride,” said decline in 2019. Tarry.

10 Airline Routes & Ground Services | Winter 2019 ROUTE DEVELOPMENT AMERICAS ROUTE DEVELOPMENT AMERICAS

“ The fine balance Infrastructure constraints between demand and look set to top aviation agendas for supply the foreseeable The Americas are enjoying solid growth, but route development could future. be affected by airport congestion and regulatory restraints, writes Graham Newton the next 20 years,” said Peter Cerda, gets just 14 per cent of the seats. The programme – known as ORD21 – to ease IATA’s regional vice president for the government’s indecision is affecting fleet its capacity concerns. The centrepiece Americas. “Many of the region’s hubs planning, he claims. of the development is the O’Hare Global are already operating at or over their United has announced 26 new international routes in Terminal, which will enable airlines to existing capacities. It is essential that the Airport congestion is alsothe an last issue two yearsat continue steady growth at the airport.

At 2.2 million square feet, the Global Terminal will more than double the space Delta Air Line’s decision to acquire a 20 per of today’s Terminal 2. The project is due cent stake in LATAM will add a further dynamic to break ground in 2023 and will open in to the Latin American market 2028. To ensure no gate capacity is lost during construction, ORD21 also includes two new satellite concourses, known as S1 and S2. There will also be significant improvements to Terminal 5, which will add 10 gates and a host of improved passenger amenities. The first completed features of Terminal 5 will be opened in 2021 and a new will come online by the end of 2022. The O’Hare Global Terminal project Is the centrepiece of the airport’s $85 billion development programme To facilitate further investment in US infrastructure, there is a proposal to increase the US airport passenger facility Aviation’s focus has tended to fall eastward in recent helped keep load factors well above the 59.5 per cent relevant stakeholders seek joint solutions some of the major North American hubs. charge (PFC). Airlines argue, however, that years. The looming giants of China and India are the breakeven. to ensure that aviation can continue to There are East Coast and West Coast funding is not the issue and that airports bedrock of enormous air travel demand in Asia- Latin American airlines will deliver a humble $0.2 grow and plays its important role in the problems as airports struggle to keep up collected $3.5 billion through the PFC in Pacific while the Middle East’s big three – Qatar, billion net profit. IATA suggests “this reflects a social and economic development of the with demand. 2018 alone. Furthermore, being owned by Emirates and Etihad – continue to widen eyes with moderate improvement from the $0.5 billion loss region.” public entities in the main, airport access the level of their ambition, on the ground and in the in 2018, as the recovery of the Brazilian economy is “North America continues to be one to money is rarely troublesome. air. offsetting higher oil prices”. In Central America, despite the fact that of the most profitable aviation markets Mexico City International Airport handles in the world with a projected healthy Airlines note that the US ranks 100 out of In contrast, the Americas have veered more towards Airport congestion some 45 million passengers in a facility passenger growth,” said Cerda. “However, 136 countries in travel and tourism cost unremarkable but steady progress. The mature There are, nevertheless, challenges to overcome. fit for about 32 million, a proposed new available capacity especially at some of competitiveness, according to the World market of North America continues to grow at a Infrastructure and regulations could yet dampen At 2.2 million square airport has been put on hold. the larger international hubs is becoming Economic Forum and a PFC hike would reasonable rate and the under-developed Central and longer-term forecasts. feet, the Global increasingly limited. IATA therefore reduce the country’s cost competitiveness Latin America regions are putting aside economic Terminal - due to Enrique Beltranena, president and CEO welcomes the projects underway to further. US taxes and fees account for hardships to show some modest profitability. In Latin America, Bogota, Havana, Lima, Santiago break ground in of Volaris, recently called for “an urgent expand and redesign terminal capacities at about 21 per cent of a typical $300 ticket. and Sao Paulo are among the airports with capacity 2023 and open in decision by the government on how the hubs like Chicago, New York-JFK and Los The International Air Transport Association (IATA) issues. 2028 - will more airport situation will develop”. Beltranena Angeles, just to mention a few.” But it is true that congestion could expects North American carriers to post a US$15 than double the says Volaris is dominant in the domestic get worse. Air travel in North America billion post tax profit in 2019. Net margins and growth “Latin America is projected to have on average space of today’s market from Mexico City and has the Chicago’s O’Hare International Airport is predicted to grow at 2.4 per cent are down on 2018 levels, but consolidation has an annual growth rate of around 4 per cent over Terminal 2. largest share of passengers overall but has an $8.5 billion development annually meaning 1.4 billion passengers

12 Airline Routes & Ground Services | Winter 2019 Winter 2019 | Airline Routes & Ground Services 13 ROUTE DEVELOPMENT AMERICAS ROUTE DEVELOPMENT AMERICAS

will need to be handled annually in 2037, In the US, the Department of overbooking or lost luggage. There are “ 527 million more passengers than today. Transportation (DOT) imposed three even extraterritorial provisions. United’s joint venture with Air New Zealand will yield the only Latin American markets will only get an separate sets of consumer rights rules In the last two nonstop service between Auckland and New York additional 371 million passengers by that on the industry during the Obama Joint ventures time but that represents a near doubling Administration as regulation fought Airlines remain focused on expansion, years, United has of numbers. back in what was supposed to be a nonetheless. Route development has announced 26 deregulated market. enjoyed a prolific period recently. In the Such much-vaunted technologies last two years, United has announced new international as biometrics as well as off-airport Airlines, through IATA and local body, 26 new international routes, including processes might alleviate some of the Airlines for America (A4A) continue to nonstop services to Cape Town, Naples, routes, including congestion, but infrastructure constraints campaign against the full fare advertising Nice, Palermo, Porto, Reykjavik and Tahiti. nonstop services look set to top aviation agendas for the rule that hides fees and taxes in the foreseeable future. overall ticket price, and the tarmac United’s joint venture with Air New to Cape Town, delay rule that can punish an airline for Zealand will yield the only nonstop service Non-global standards trying to act in passengers’ best interest, between Auckland and Newark (New Naples, Nice, Regulatory concerns also threaten such as getting them onboard to take York) due to begin in October 2020. Palermo, Porto, the efficiency and sustainability of the advantage of the earliest possible take-off The three-times weekly service will join industry in the Americas. Non-global slot. a Chicago to Auckland nonstop flight on Reykjavik and standards are rife in Latin America. Some the carriers’ networks. It will use a Boeing governments insist baggage fees are In Canada, a new air passenger 787-9 taking approximately 17 hours and Tahiti. included in the ticket price, for example, protection regulation has been proposed 40 minutes southbound and 15 hours 40 which limits airline commercial models. that contains punitive measures for minutes northbound.

Individual. Reliable. Innovative. We take care. You take off.

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FRA_BVD_Anzeige_2017-06_fin_20170626.indd Alle Seiten 26.06.17 17:24 ROUTE DEVELOPMENT AMERICAS Global “ Regulatory Outreach concerns also It all begins at Miami International Airport, threaten the Florida’s Global Gateway: efficiency and • Among the Top 3 Gateways to the USA and the Leading Airport Connecting the Americas. sustainability of • The USA’s #1 International Freight Hub and the #1 Airport for the industry in International Passengers to Florida. • Served by Over 100 Airlines with Flights From 167 Passenger the Americas and 112 Cargo Destinations Around The World. • New Air Service Incentive Program – ASIP6 – now available. owns about 8 per cent of Azul. The Brazilian carrier was previously rumoured to be considering a tie-up with American and the move may push American to consider GOL instead.

Azul enjoys a monopoly on the majority of its routes and offers well over 100 destinations. In the summer it added its 12th international connection, flying between Sao Paulo and Porto. Azul will end 2019 with 21 new aircraft and The airlines offer more than 1,100 weekly has begun operating the new 136-seat “Air New Zealand’s nonstop flight will cut flights on 64 routes between 11 cities in Embraer E195-E2 variant. travel time by around three hours, putting Mexico and 33 in the US. New Zealand in easy reach of New York Another joint venture between United Azul’s fellow Brazilian airline, GOL, is also and the east coast United States,” said Jeff Airlines, Panama’s Copa Airlines and performing well. It continues to lead the McDowall, Air New Zealand’s acting CEO Colombia’s Avianca probably won’t domestic market and has benefitted from at the route’s announcement. “It’s terrific get approval until 2021. The three the withdrawal of Avianca Brazil. GOL has we can make a seamless journey a reality carriers announced their been at the forefront of low-cost carrier for Kiwis wanting to experience New York intention to cooperate in November 2018 (LCC) operations in Latin America, a and for US travellers who have added New but getting the regulatory green light is business model that is nowhere near as Zealand to their bucket list and we look a lengthy process. Avianca has also had developed as it is in North America. forward to partnering with financial trouble and a new management to grow travel in both directions.” team is reviewing the strategic plan. Although Argentina, Chile and Colombia The airline’s Bogota hub operation will are also seeing strong LCC performance, New Zealand visitors will get access to be a prime focus with higher-yielding it remains to be seen whether their LCCs more than 90 US destinations from destinations and connections on the can be profitable in the long term given United’s New York hub. cards. the economic volatility of the region.

The Delta-Aeromexico joint venture (JV) Delta Air Line’s decision to acquire a 20 Overall, aviation in the Americas seems set has similarly lofty aspirations. As of May per cent stake in LATAM and take the to continue on an upward if unspectacular 2019, the JV had transported more than airline out of Oneworld alliance will add trajectory. Infrastructural and regulatory 14.4 million passengers since its approval a further dynamic to the Latin American pain points will apply brakes to the two years earlier. Eight new routes and market, although it is too early to say how industry and the future economic two new joint destinations in Mexico this will pan out. situation is anybody’s guess. Airlines in the have been announced and 80 per cent region have come through tougher times, of the differences in service have been Party time however, and the emphasis on route eliminated. There are also reports that Brazil’s Azul development demonstrates a degree of Lineas Aereas will join the party. United confidence in the years ahead. www.miami-airport.com iflyMIA | [email protected]

16 Airline Routes & Ground Services | Winter 2019 Photo Courtesy: Felipe Galvez

03567_ARGS_210mm_X_297mm_2019.indd 1 11/21/2019 10:21:28 AM AIRPORT SPOTLIGHT AIRPORT SPOTLIGHT

“ Green and growing in San LAX is busting at the seams, and Bernardino we’re here to San Bernardino is an airport with a bright future – and not just thanks to its new energy relieve some of efficient lighting system. Its green investments bode well for the future, as does its that traffic in the determination to succeed in the passenger service market, writes William Hayes passenger market

Gibbs, director of aviation for San Bernardino that we haven’t really established ourselves in International Airport. is the passenger service market.”

“You walk up to the car with your app, you What would you say some of the get in, you pay by the hour. So, you know, the obstacles are to entering the passenger price point on it is scalable. Which is customer market for SBD? friendly, and at the same time good for the environment.” “The challenge for us is establishing that initial service, but we are in a very strong The move appears forward-thinking, but market. It’s a population of nearly 20 million also prudent during a year marked by in the LA basin, we’ve got international global climate change protests, with Collins capabilities, with facilities that can Dictionary even picking “climate strike” as its accommodate any aircraft in the world. LAX word of the year for 2019. is busting at the seams, and we’re here to relieve some of that traffic in the passenger But it isn’t just in environmental terms that market, and have the facilities and the abilities San Bernardino international Airport (SBD) (GSE), partnered up with car rental company the airport is hoping to make progress this to do it.” and it’s fixed-base operator (FBO), Luxivair StratoShare to offer its customers hydrogen- coming year, as Gibbs admits one area of SBD, hit headlines recently for showcasing the powered sedans, and converted to energy its business has been neglected more than Have there been any first entrant depth of its commitment to environmentally efficient LED lighting throughout its others. opportunities for SBD so far? friendly practices. operation. “Like a lot of other commercial airports we’ve “Volaris announced in 2017, they were ready The airport invested in a range of low and “We’re the first airport in the world to offer got our five business lines, and we’ve had a lot to go but customs and border protection zero emission ground support equipment hydrogen cars that can be rented,” said Mark of success in four out of those five. The one didn’t have the personnel necessary to make the flights happen unfortunately. So there has been interest and Mexico is one of the markets that is ideally situated for “ us. Certainly not the only market, but it is certainly an opportunity.” through our very nice facilities that will exceed What do you see for air travel in general We’re the first the customer’s expectations.” in the future? What are you doing to optimise airport in the passenger experience at SBD? What are your objectives for SBD in “I think it’s a great time for aviation. I think world to offer 2020? we’ve seen growth, and I think we’ll continue “We’ve got right sized facilities with a limited to see growth, certainly in 2020. Fuel prices hydrogen cars that number of gates that are available right now - “We’re looking to continue our growth in are steady, with a downward bias to them. and in a lot of ways that’s a really good thing. our different market segments, including There’s low unemployment, and usually when can be rented.” If you think of some of the more crowded passenger airline service. It’s one we continue there’s low unemployment, a lot of people airports, parking is a hassle, getting to the to pursue, we think we’ve got a great offering, are travelling and want to see the world. airport itself is a hassle, and you kind of lose and we know our airport costs are far below Generally speaking airlines are helping – we touch with your customer. We’re a smaller, anyone else in Southern California. We are haven’t seen any bankruptcies in quite some more nimble airport with great facilities, and confident that a savvy airline company will time - and we’re seeing an expansion of seats. really our niche is operating for an airline that recognise that and recognise our market I think all of that is a good marker for the year comes in with low prices that they can pass size, which is tremendous - and recognise the ahead.” along to their customers, and an experience opportunity and benefit from it.”

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also one of only a handful of European airports to be certified with the 4-Star Airport Rating by the review and ranking LCC revolution consultancy. “Fair competition is quite a healthy thing,” said Jäger. “Keeping markets alive at Vienna artificially and on the basis of public sector intervention distorts competition and must be rejected. Airport “Vienna Airport positions itself against competitive flight hubs thanks to a fair, transparent and non-discriminatory Following Vienna Airport’s record-breaking 2018, Julian Jäger incentive programme designed to talks to ARGS about the international hub’s plans for the increase the number of frequencies or routes and to strengthen the hub function future, and why an increase in LCC activity is a good thing. by airlines.”

The incentive scheme, discounts on airline airport charges introduced recently by Vienna, has seen an increase in low-cost Vienna International Airport (VIE) “Although we can only impact this to a carrier (LCC) activity at the airport, a handled 27 million passengers for the limited extent, we are constantly working trend that Jäger sees increasing. first time last year, riding a wave of traffic with airlines and handling agents to growth that looks set to see it surpass 30 optimise processes as a means of already “At Vienna Airport we recognize strong million passengers in 2019. making up for lost time during the peak growth in the long haul and low-cost morning periods,” said Jäger. trend segment,” said the Vienna Airport Julian Jäger, joint CEO and COO of CEO. Vienna Airport, said a major challenge The airport is known for having a high against the backdrop of such rapid quality of service, having received the “We anticipate an increase of low-cost passenger growth would be to maintain “Best Airport Staff in Europe” accolade flight connections to comprise up to a a high level of travel quality, especially in at the Skytrax World Airport Awards 2019 30 per cent overall share. An increasing terms of punctuality. for the fourth time in five years, and is number of airlines are incorporating

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low-cost or premium-economy offers to respond to the growing demand for more attractively priced offers.”

LCC activity is not the only area VIE is /AeroGround experiencing growth, with the airport also experiencing an upsurge in long-haul flight traffic. This expanded by 24 per cent in 2018 alone and new carriers launching Living ideas – Connecting lives flight operations from Vienna Airport this year include ANA, Air Canada and China Southern Airlines.

Further global trends which VIE have identified and are now implementing in their own hub include automation and digitalisation, both areas the aviation industry has been slow to pick up on in comparison to other sectors.

“From a global perspective, the automation of different service processes is becoming perceptible, such as self- service check-in or baggage drop-off counters and more services,” said Jäger. “Digitalisation is also shaping developments, for example automated procedures in passport control which we have already initiated as well as security checks.”

As part of a wider modernisation drive, Vienna Airport is also planning to adapt the Terminal 2 and East Pier sections of At the present we are managing with time of 25 minutes is one of the fastest in its operation, bring them into line with existing capacities up to approximately Europe. How much of this has to do with contemporary standards. 35-40 million passengers,” said Jäger. collaboration between the various parts – “After that more runway capacity will ground handling, airlines and airport – of “Terminal 3 will also be extended, adding be necessary. At present VIE has two the aviation chain? 20,000 m² of space for new lounges, intersecting runways which mean a 1.5 shops and a spacious security checkpoint runway capacity in reality. “At Vienna Airport the collaboration of all for a relaxed departure at Vienna Airport,” these areas works very well,” said Jäger. said Jäger. “The third runway is [also] in “In the future, a third runway would run “We offer passenger and aircraft handling the makings as a long-term construction parallel to one of the existing runways and as well as security checks on our own. As project.” create new arrival and departure capacities a result, we are capable of working very Experts in Ground Handling at Vienna Airport. According to current efficiently and in a closely-knit manner. Plans for the third runway were approved estimates, the [third runway] project could AeroGround provides flexible solutions by offering the full range of premium ground handling for construction by the Supreme be put into operation in the year 2030.” “On balance, it would be good for the services at Munich, Berlin-Schönefeld and Berlin-Tegel airports. Administrative Court in Austria in March aviation sector to work more intensively 2019, surviving appeals made by local The final decision on the third runway together and pull in the same direction residents and environmental groups after was surely welcome news for VIE, which when it comes to reliable operational initially gaining authorisation in March last has a reputation for efficient airport procedures, for example in order to year. management - its minimum connecting substantially reduce delays.”

www.aeroground.de

22 Airline Routes & Ground Services | Winter 2019 AGS GLOBAL NETWORKING SUMMIT AGS GLOBAL NETWORKING SUMMIT

The 2nd AGS Global Networking Summit from 10-12 September brought together Industry key decision-makers from across the ground handling industry stakeholders need to collaborate more effectively Justin Burns reports from the 2nd AGS Global Networking Summit. The event took place in September in London, and saw key industry issues debated.

The 2nd AGS Global Networking Summit airlines and other stakeholders talked relationships at the welcome reception less safe, more expensive and people get Burak Tayanc of Havas with Didem Barutcu and Furkan Kiyici from 10-12 September proved a huge business and where the industry is at, and then at the dinner on day two. a worse customer experience than they of Turkish Ground Services succes, bringing together key-decision when they attended the summit at the should be.” makers from across the ground handling Hilton London Heathrow Terminal 4 A plenary session moderated by industry. Hotel. experienced industry professional Des The new chairman of the Airport Services Vertannes, on the morning of day two, Association (ASA) said ground handling More than 70 high-level professionals Delegates also attended the extensive helped set the scene for the event, as should be a very simple, safe and seamless from ground service providers, airports, networking that was on offer, forging new pertinent industry issues were discussed service, but is not as efficiently operated by a panel of senior industry figures and as it should be at some airports across the saw strong interaction from delegates. globe. More than 70 professionals linked to the ground service industry attended the event Collaboration is the answer “A lot of effort goes into the passenger The three principle ground handling experience but there is still a lot of work stakeholders – ground handlers, airlines to do below the wing on the ramp,” and airports – need to collaborate more Allen noted. “My view is we need more to help develop and grow the industry, the collaboration between all the entities at plenary session heard. the airports. All the focus should be on the customer experience, as that is where Panellist Steve Allen, head of UAE airport we make our money.” operations at dnata, told delegates that the biggest problem in his opinion is that This point was noted by fellow plenary positive impact that technology can have staff and training. If we go into robotics airports are a “total mess” and are also panellist Robert Derr, ramp and ground on ground handling in the future to aid and automation, then we don’t need the being developed without consultation handling manager at , operational efficiency and collaboration. manual handling we have today so that is with operators and ground handlers. who said the hub’s ethos is to treat every one aspect.” airline’s customer like their own. Allen said: “I think technology has a “We have this mish mash of everything key place to play in eliminating some “The second is the ability to collaborate. trying to do business,” he said. “It makes it The plenary session also heard of the problems in ground handling like retaining If we get the right technology where we

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share data between all the entities – the airport, ground handler and airline – the data is shared and decisions are based on collaboration,” he noted.

“At the moment this has worked really well with ACDM [Airport Collaborative Decision Making] because it is ATC of the ground handler on pushback, but that could flow through everything we do if we all work off the same data to help us make decisions. If we bring AI into that, that could tell us what to do and help us to solve some of these problems.” The event had plenty of networking opportunities Allen said in his view technology has a key role to play in the future of the industry and has a “massive role” in solving any problems across ground handling and in driving collaboration.

Pressure on ground handlers Ground handlers are facing unprecedented challenges as air traffic passenger figures continue to grow strongly and aircraft turnarounds surge.

Derr said Heathrow Airport itself is seeing a great deal of pressure at the UK hub on ground handlers to “constantly challenge their prices” whilst also delivering a high- quality service.

Heathrow has more than 80 airlines and Des Vertannes moderated a plenary session on the airport sees around 470,000 air traffic day two, which saw key industry issues debated movements across its two runways a year. It has been given permission to build a third runway that will ease capacity issues, but it could be six or seven years until it is opened.

“I see the tension and stress between ground handlers and airlines,” Derr said. “I think ground handlers struggle to structure business when they are on three-year contracts but with 90 days’ notice - so how do you build more robust business plans to work across that environment that can generate churn and instability?”

Heathrow has eight ground handlers providing services to airlines, and at one of the world’s busiest hubs, where around 80 million passengers pass through each year, operators continually face immense Tal Leemor and Safi Sasson of hoopo challenges.

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Collaboration across the industry was one of Fabienne Allaeys of AGA Airlines Ground the key themes of the event Assistance with Des Vertannes Derr also said that in his view, more data needs to be shared across the chain, as this would help boost operational efficiency and standards.

The second airline Ground handlers are often arguably the forgotten part of the aviation chain, the middle-man, and it could be said their importance is sometimes not regarded highly enough.

Panellist Samir Shaikh, station manager at Air Astana, certainly holds ground handlers in high esteem and said that as “The second thing is the moment your an airline it relies on the ground handlers, ground handler abuses one of your who are in his view the “second airline” customers or doesn’t deal with them - so it is vital the carrier supports them very well, and the customer does not where needed. come back, again you have wiped out the savings you have made on those He noted that it can be difficult to incremental costs from the ground choose an operator and in coming to a handling contract.” decision as to which handler is chosen for a station contract, the Kazakhstani Allen said that once the contract is carrier looks at KPIs, customer service signed that should not be the end of and reliability of the operator. the agreement and ground handlers and airlines should continue to have an Shaikh said one thing he would like to see ongoing dialogue for the entirety of the implemented was ground handling staff contract, discussing how things have been wearing uniforms that match the airline or can be improved and how things can so that they both look the same. be done differently.

However, Allen noted that these kinds One interesting sub-debate during the of details stem from the difficulties plenary was whether ground handling is in the negotiation of contracts. Part seen by airlines as a non-core or core part of the problem, he noted, is they are of operational activities. The event was held at the Hilton London often negotiated solely with the airline’s Heathrow Terminal 4 Hotel procurement team, who are only Shaikh said Air Astana views it is a core focusing on keeping costs as low as component of service, but one view from possible. a delegate from the floor was that it is simply “something that has to be done,” “When we look at that part of the world, Derr said that at Heathrow Airport, there “Contracts are negotiated to reduce so not a core activity. we are concerned that there is any kind is a wide variety of ground handling costs without taking into account the of pressure to race to the bottom,” Derr standards utilised across different operational realities for what they have Tammy McKenzie, head of ground said. “From the feedback from ground providers, which in his opinion does not negotiated,” he said. “The best airlines operations at TUI Aviation, disagreed: handlers at Heathrow, I see a constant have a positive effect on operational we deal with are where the operators “From a customer point of view, it is pressure and struggle to recruit and retain efficiency. and the procurement team work hand absolutely core. From our perspective staff, I see that is one of the challenges in hand. Sometimes you can easily pay a we are a holiday airline and getting each of the handlers have. Even those at “I see ground handlers handling 30 very low price for a ground handler, but people from point A to point B, it is the the more premium end of the market still airlines with huge amounts of variation the moment you get one aircraft damage, first impression of their holiday and the struggle to recruit and retain people.” and even airlines within the same group you have wiped all those savings 10 times. last impression of their holiday for our that cannot agree standardisation for the customers, so it is absolutely core.” There is often talk of the need for a more same aircraft type,” he said. “That just “I think that is a big issue in the industry standardised approach across the ground drives instability and hesitation, drives - we don’t recognise the impact of saving Tammy McKenzie, Head of Ground Operations Challenging but exciting times lie ahead, handling industry, to drive operational a lack of consistency of process and a few pennies that create some multi- at TUI Aviation it would seem - for all ground handling levels of operators. safety.” million-pound issues. stakeholders.

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are much more delicate and if there is an Striking out incident they tend to be a lot more costly, Menzies boss Giles Wilson made the or create delays. step up from chief financial officer earlier this year. “So I think the more you can invest into alone fewer, more professional handlers, the better the industry will become and I Despite facing challenging market conditions, Menzies Aviation think that’s where it will go.” is optimistic about its future as a standalone aviation services One area in which smaller players may business company. CEO Giles Wilson speaks to William Hayes find it hard to keep up is innovation and technology, something Menzies has a persistent focus on, said Wilson. company is actively trying to change. “Our biggest cost is people, and our “We have spent a lot of money over biggest challenge will always be retention the past few years on our systems and of people. We work in an industry, in processes, on IT, WorkBridge, telematics… a number of markets, where at the we’re always continually investing in our moment unemployment is at record lows. systems and processes and I think we’ve So the cost of inflation is coming through got some market leading systems. that, which you always have to talk to your customers about as it pushes cost “So we continually invest, we don’t stop into the industry. that drive…I think the big thing for us is about making sure the innovation is “We’re heavily focused on rolling out a what’s needed,” he said. new leadership programme. It’s not just about the pay for people, it’s about all Many would argue that what is the other things - be that recognition, needed in 2019 and onwards is a move the ability for a career, being able to towards more sustainable practices “Our biggest cost is people, and our biggest challenge will recognise flexibility. and technology, following the global always be retention of people” ‘green revolution’ which has normalised “We believe fundamentally that you discourse around climate change should be paid the right amount for what catastrophe. you do and we believe that if we can This year may have seen the demise of It may be exciting, but it has certainly be efficient and if we can look after our “The drive is away from diesel to green, Britain’s oldest travel company in Thomas looked challenging at times over the past people, we can provide a better service.” to electric, and you see that all the time, Cook - but Menzies Aviation, one of year. Factors such as the US-China trade where the airport infrastructure allows ’s oldest and largest companies, is war, the global grounding of Boeing’s 737 In theory, the future does look brighter it. So obviously we have to work around still alive and kicking in the airline industry. Max jets and a general market slow down for Menzies, as well as the other ground the airport infrastructures as well,” said saw the company fall into losses in the handling market leaders. The industry Wilson. In its first full year operating solely as first half of 2019 and sent Menzies shares has a history of fragmentation, but the an aviation services business, Menzies hitting a 52-week low in July. trend is towards consolidation and “We use a lot of electric tugs, and I think Aviation has weathered a turbulent greater outsourcing of aviation services as a rule we try to buy electric as the top does drive people to spend less,” said “ situation to emerge in a positive frame “Of course, this is the first year of being by airlines. priority where we can - both for the green Wilson. of mind about the future. Giles Wilson, a pure-play aviation business, so it’s a big side and for the longer term, because We believe CEO of parent company John Menzies year of change for us,” said Wilson, quick “If you look back five years and you now there’s less things to go wrong with them.” “So of course you are going to get plc, spoke to ARGS about his strategy to point out that 2019 was always likely to look forward five years, I think that trend impacted...but we are also a global fundamentally for developing the business and the be unpredictable for Menzies, following will continue,” said Wilson, adding: “and Although the environmental agenda business, so we have got some markets that you should challenges it faces. the sale of its newspaper and magazine I believe that’s the right thing for the is undoubtedly shaping trends in the that are doing really well. distribution arm in September last year. industry.” ground handling industry and beyond, the be paid the right “One or two customers have obviously “So the drive for us is about setting instability of global politics has arguably “We must make sure that we balance that had some difficult times and we’re very ourselves up for the next five years, it’s “We are now dealing with a change in played a greater role in affecting cargo and we grow the business and take the amount for what sad to see a few of them gone - the likes not just about what 2019 is about.” the markets we are working in. In Europe volumes, with the US-China trade war a opportunities where those come. I do you do. of Thomas Cook, for example,” said the particularly, you’ve got the EU 261 [Flight notable example. believe that airlines will look to the more Menzies boss, who made the step up from The issue of staff retention is noted as a Compensation Regulation], the fine professional service that is part of that chief financial officer earlier this year. “So problem for Menzies, as it is across the mechanism which has obviously cost our “I think the general comment about and that will play into the hands of the it is tough, but the basic economics of ground handling industry as a whole, customers a lot of money, and you’ve got political uncertainty is it drives economic bigger players as well.” what we do is still very exciting.” although this is something Wilson said the new carbon composite aircraft. These uncertainty and economic uncertainty

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“These are smaller projects, as well as rise, to 50 per cent by 2025.” Helsinki for the third time in a day.” Stefan Hartung, data related projects we are investing in Senior A global player where you might not see it right away, Investment is not only limited to GSE This touches on the wider point of Communications like with a new building or a new facility.” Manager at though, with the company receiving operational efficiency for Swissport, As the biggest player in the game, the industry’s eyes Swissport plaudits for its delay prediction tool with Hartung highlighting “operational Yet that is not to say new facilities are currently in use at Helsinki Airport for challenges regarding to airspace are always on Swissport and its next move. William not being built, as Hartung disclosed Finnair. the opening of a “brand new Swissport Hayes talks to Senior Communications Manager Stefan pharma centre in Brussels,” which he The machine-learning tool is based Hartung about what that might be. claimed would be the most modern on an algorithm developed by Finnish “ building of its kind. This was in addition information technology company Bluugo to a “brand new cargo facility” at and uses a variety of factors for its It’s all about , which “will have predictions, including weather data, data which equipment Earlier this year, Swissport looked on ARGS caught up with Stefan Hartung, ground breaking by the end of November from air traffic control and information the verge of being sold, with Reuters senior communications manager at and go live into operation mid to end “A major part is the green revolution and from other airport operators. is running on reporting that “everyone in the world” the Swiss company, to find out what it next year.” if we look at this part it’s all about which was looking at what Chinese owner HNA was doing with its newfound breathing equipment is running on the ground at “This data model is quite precise and the ground at Group would do with the world’s leading space. It would seem the company is operating Swissport - the shift goes from fossil this really helps us to better plan our Swissport - the ground service provider. in line with Born’s assertion that the fuels to electrically powered vehicles. equipment and staff in Helsinki, and then “Mainly a lot of investments, to go to successful refinancing “significantly they don’t have to wait at an empty ramp shift goes from However, following a successful debt the ground service equipment [GSE],” increases” its cash position, enabling it “We are already operating many of these or gate position. refinancing in August, the company said Hartung, adding that “we are to further enhance its “leading global electric vehicles, currently about two fossil fuels to looks resurgent – with CEO Eric Born also investing in training, innovation, market position through organic growth and a half to three thousand eGSE which “If a flight from Finnair flies from Helsinki even suggesting “selective bolt-on and we had some trials going on with opportunities.” But what else is it are run through our different airport to Paris and London and vice versa, we electrically acquisitions” could be on the cards. autonomous vehicles. spending its money on, and why? locations, and this share will definitely already can predict when it will be back in powered vehicles.

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management” as one of the key problems the company faces in We know these are tough jobs with regard to weather, shifts, digital processes, be it rosters, shift switches etc.” our first lounge… [which] will be in Perth,” further expanding its its day-to-day work. comparatively low pay, although industry level. At the end of the footprint down under, following the acquisition of Australasian day it’s a low margin business and we have high expectations The digitisation of the industry has certainly been a slow process ground handler Aerocare last year. “We rely on the punctuality of the airlines and the airlines rely from our customers, from the airlines. - as documented by CAAS magazine in its August-September “We also just started our executive aviation business there in on certain conditions with airspace management. The more 2019 issue – but what does Swissport think about digitisation as New Zealand, in Auckland and we will see more progress there I punctual they are, the better we can plan our staff and our “So yes, it’s a tough job, but we do the best we can do to keep a means to drive the industry forward? think,” said Hartung. ground service equipment.” that attractive, because it still is an attractive environment in the airline and aviation industry. We are a global player and we have “It’s definitely a part, digital processes, but there you need all “When we bought Aerocare it was just a ground handling This was important, Hartung added, because as “the punctuality a lot of career steps also in place. players involved. I mean we do the first steps, as I mentioned business and this was always meant to be a platform for further gets better for the airlines, so does the operational stability for in Helsinki, but you need more players all involved in the whole growth, also in other business units besides ground handling.” us in terms of cost.” “What do we want to do to make this even more attractive? We passenger journey and I think this integration of players and are always working on open communication culture, with new data… [it] will go on and will be deepened in the months to Certainly the noises coming out of Swissport sound like a Another problem identified by the company is one surely and strong communication platforms. come.” company on the ascendancy, despite the market downturn recognisable to all providers across the ground service industry, surrounding it (“the [ground handling] market is softening,” and that is the challenge of staff turnover. “For example, more and more of the millennials are our staff Digitisation or not, Swissport looks determined to grow its admitted Hartung). But as the savvy spokesman also said, workers out there, via check in or ramp, so they have an business in inventive and perhaps unexpected ways, with Swissport is a global player – and it looks set to weather the “[This is] a topic where the whole industry is pressurised. expectation with regards to communication platforms. And of Hartung revealing the company “just started the construction of storm once more.

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Nikki Ozols, Area Manager of “ Ground Operations for UK & TUI Aviation Ireland at TUI Aviation. I think ground setting the handling is really interesting, bar for gender regardless of your gender, as it gives diversity you a really good Ground handling is not the most gender diverse oversight into aviation industry sector, but TUI Aviation is bucking airport operations. the trend and has women in key operational roles, writes Justin Burns.

Women have played a pivotal role in having the glamour of other areas and female director of in-flight service and on our board aviation over the last 100 years, but top due to the nature of work that can be of directors. We have about a 40/60 split of males industry positions have been dominated in very physically demanding. and females, nearly 50/50.” recent decades by men. However, it seems this trend could finally be changing (with Not so at TUI Aviation, which has two McKenzie said that TUI is very strong on diversity the notable exception, it could be said, of women in highly responsible and key and equal opportunities and in more than 15 years ground handling). roles, both of whom are at the forefront of working for the company, being a female has of ground handling operations in the UK never held her back from any opportunity within the One high profile female airline CEO of and Ireland - something that might come business. recent times was Carolyn McCall, who led as a surprise to some. “ EasyJet for seven years from 2010. During “I think TUI is very positive for that diversity but not her time at the helm, the carrier’s share Both play a key role in ensuring ground I do not think in the wider ground operations industry. Why is it start out as a student to move into price almost quadrupled. handling operations are efficiently carried not attracting many females and is it dominated by this industry and it just happened by out for the 63 aircraft that TUI operates that gender is males?” she says. accident, but it is very interesting and Other key positions held by women from various airports in the region to very exciting and subject to change. There include Joanna Geraghty, who is president about 160 destinations. an issue, other Her colleague Nikki Ozols is area manager of ground is also a wide scope of learning if you are and chief operating officer of JetBlue, operations for UK & Ireland at TUI Aviation, a role she someone who likes to be challenged and while Anne Rigail was appointed CEO of Aviation love affair than it does seem has held June 2017. She is responsible for operational to learn new things.” in December 2018 and Dawn Experienced industry professional Tammy not to attract as delivery of the carrier’s ground operations in the Wilson was named as TUI Airways MD in McKenzie is head of ground operations UK and Ireland, including safety and compliance, Ground handling is certainly becoming November last year. in the UK, Ireland and the Nordics for TUI many women for customer service, cost and OTP KPI’s. a tough and demanding sector of and has worked in aviation since 1990. commercial aviation as passenger traffic Meanwhile, the number of female airline different reasons. Ozols started her career in aviation by accident nine grows, but while Nikki said that despite pilots is still low and recent research Speaking at the AGS Global Networking years ago at after returning from her travels. the challenge growing every year, it is one taken from the Air Line Pilots Association Summit in September, Tammy said her crew resource & development manager, Since then, she has been a quality auditor at the she relishes day-to-day. (ALPA) and International Society of love affair started with the industry in head of crew planning, operations training Exeter-based airline, which she left in April 2013, and Women Airline Pilots (ISWAP) by online 1990 as cabin crew for 10 years, before manager, flight operations training has also been a safety and compliance officer at “I think ground handling is really travel platform fromAtoB found the global she left to work in retail for a few years, manager and ground training manager. ExecuJet, and compliance officer at . interesting, regardless of your gender, as average in the cockpit was only 5.2 per only to miss the industry and secure her After nearly three decades in the industry, it gives you are really good oversight into cent. first job with TUI 15 years ago. McKenzie believes that aviation is getting She has no regrets about how her career path has led airport operations, which is a huge part of more diverse. “Females in aviation is her into the ground handling sector over the last four any airline’s operation,” she says. Ground handling, it is fair to say, is She has been head of ground operations positive, as there are quite a lot,” she said. years, and her passion for the industry is evident. Tammy McKenzie, Head of arguably the aviation industry sector that at TUI for the last 18 months. Prior to “If you look at TUI alone, we have a female Lack of diversity in ground handling Ground Operations at TUI has the least diversity, partly due to it not joining TUI, Tammy held roles as cabin MD, a female director of operations and a “It is a very dynamic industry,” she says. “I didn’t The number of women working on the Aviation

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there are more and more women becoming dispatchers but generally, ground handling teams are mainly made up of men.

Gender diversity will help industry grow Both McKenzie and Ozols feel the ground handling industry has become too traditional and is stuck in the past, and although more technology and innovation is slowly being adopted, it is not coming at a fast-enough pace.

“Ground handling is so behind when it comes to technology,” McKenzie says. “It is not moving quick enough. There is so much talk about innovation and being more digital. There is always a challenge of investment, as it will always be the airport or the airline making that.”

“You have got to take people with you. We ramp and in ground handling operations airports and ground handling companies still have people sitting behind the check- does seem low, and both McKenzie and as well? Maybe part of it is that people in desks, still doing the same job they did • Ozols are exceptions to the norm it work their way through the ranks,” she years ago, and we are still doing the same CROWNE PLAZA DUBLIN BLANCHARDSTOWN seems. adds. things on the ramp.” 9th - 11th September 2020 Whenever you seem to lookout to Ozols notes that being a woman in ground McKenzie feels that the ground handling the airport apron during an aircraft handling at TUI is great, as it is a balanced industry needs to move away from its turnaround, it is clear, maybe due to workforce. However, when she goes out traditional ways and in 10 years’ time, International event for ground service providers, airlines and airports the nature and physicality of ground to stakeholder meetings and to other ground handling cannot still be using the operations, that gender diversity is limited. parts of the industry, it is noticeable that same technology as it does today and it is predominately men who occupy the there needs to be an injection of fresh McKenzie agreed that when you get to the roles. ears and eyes. ground operations side of aviation it is a different story to other sectors, as there “I do not believe in the UK that is In her opinion, the more gender diversity What’s new in 2020? is a lack of diversity and it is dominated by detrimental though, and I think everyone and mix of staff the better, as a balance of males. works well together and I do not think skills, expertise and new thinking will help ASA Ground Handling Innovation - Wednesday 9th September that gender is an issue, other than it does drive the industry forward in the future However, it seems not so at TUI, where seem not to attract as many women - just as it seems other sectors within she noted on her ground handling for different reasons,” she says, adding: aviation have done over the last decade. operations team of around 30, there is a “However, it is certainly not an area of nice balance of males and females. the aviation industry that women should Ground handling might not have the same discount working in.” gender diversity as some sectors within “When you come outside of TUI and look aviation, but it is good to see the trend at the airports, handling agents, etc, that Ozols said there is “no two ways about is changing and more women are getting is where you know that there is definitely it” that when you go to an aircraft into the industry. Conference session open to all attendees a more prominent male population than turnaround it is very rare that the ramp female,” McKenzie says. handler, cargo agent or dispatcher is a Judging from the experiences and careers woman. of Ozols and McKenzie, the opportunities “I think the thing is, how do we get more do exist for ambitious and driven women Airline Working Groups - Wednesday 9th September women into similar positions across However, on a positive note, she said who have a passion for aviation.

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Facilitating independence Busy airports around the world are working hard to take care of every traveller that passes through their terminals, including those passengers whose mobility is restricted in some way, writes Meghan Ramsay.

Each year global passenger numbers continue to rise and be empathetic and they have to assist. along with this comes greater need to cater for passengers “If they are not aware of what to do, that can lead to with restricted mobility (PRM). frustration. We do a lot of training so staff know what is required by law, and how to refer people to someone who Sensitive screening “Globally, the need for PRM services is growing by 8-12 per knows how to help if they are unable to answer a question cent every year,” says a spokesperson for ground services themselves.” The British-Irish Airport Expo held in June this year described provider Swissport, whose majority-owned joint venture airport security as “the most complex touchpoint in the vulnerable GVAssistance offers special services at Geneva Airport. According to Marchant: “Aviation is leading the transport traveller process”. sector for special assistance, and is seen as the gold “The needs of travellers with reduced mobility are very diverse. Our staff For instance, London Heathrow Airport provided assistance standard internationally. With that said, there’s still more is especially trained to identify the physical disabilities and special needs to over 1.4 million passengers with restricted mobility in work to be done across our industry.” of travellers. Based on their assessment, the security staff is informed. The 2018, and that figure is expected to rise by 10 per cent for airport security then decides whether a person can walk through the metal 2019. Among initiatives at Heathrow is the launch of the detector, or needs to be searched manually,” the Swissport spokesperson says. Heathrow Access Advisory Group (HAAG). This group, “This growth is partly due to our ageing population, but along with other charities and support groups, works with As Marchant points out, airports are required to search every person who also the improvements being made to assistance services the airport operator to critique its facilities and processes, enters the departures lounge. But, she says: “We understand that we need which have given more people the confidence to fly,” says so that it can improve its special assistance services. to take everyone’s individual conditions into account and we work with passengers to ensure that this is done with dignity and respect, whilst Sara Marchant, customer relations manager at Heathrow. keeping the airport compliant. Prior to formation of the HAAG, Heathrow was rated as The situation across the pond at the world’s busiest ‘poor’ in the Civil Aviation Authority’s airport accessibility “For example, people who have medical aids such as stomas may feel more passenger airport, Hartsfield-Jackson Atlanta International report, but since the launch of the group and after investing comfortable requesting a search in a private room, a request we’re happy to accommodate. Airport, is very similar. £23 million (US$30 million) in new equipment, facilities and training, the airport’s rating was restored to ‘good’ in 2018. “For wheelchair users, all our security staff are trained on how to search Steve Mayers is Atlanta’s airport director, customer people in a way that satisfies our regulatory requirement, without requiring experience, Americans with Disabilities Act (ADA) and Title At Atlanta: “The biggest problem we have is wait times, them to walk through a metal detector,” she adds. VI coordinator. He explains: “My office is concerned with because of the labour problems we have today,” Mayers Mayers elaborates: “If a passenger is unable to walk through an x-ray civil rights and ensuring staff adhere to the Americans says. The availability of staff has a ripple effect; wages in the machine, they can be wheeled through, but this has to be followed by with Disabilities Act. That includes passengers requiring US are rising, but those offered in the PRM sector are not additional screening that is more imposing.” wheelchair assistance and any official complaints of attractive – and not all passengers give tips. That is, a person can be physically searched whilst in a wheelchair. “The discrimination.” agent must explain the process first, because s/he has to touch the In order to address this, the airport discusses with its passenger and may have to get close to some private areas. This can be PRMs are not limited solely to those individuals who need partners the wages of comparable staff that the airport done in a private room on request,” Mayers confirms – “but everyone has wheelchair assistance. It is also necessary to consider employs directly. It also speaks with airlines – which, after to be properly checked for security.” passengers with a hearing or sight impairment, for example, all, are responsible for engaging subcontractors and often Mayers is keen to point out that the travelling public “needs to ensure they who might need to be accompanied or guided through the “nickel and dime” them to cut costs, Mayers notes. understand what happens through security. airport or may be travelling with an assistance animal. A seamless experience “Usually, if we have a complaint and I explain the process and why it has to be done that way, the passenger ends up nearly 100 per cent Given that variation, it is vital that airport staff understand With many airlines operating on a 35-minute turnaround understanding why things have to happen. It’s very important to have an what might be required of them. time, PRM services must focus on technological innovation active campaign to teach the public, including those with a disability, so to become more efficient. that they understand the process, we get fewer complaints and everything Mayers outlines: “Handling PRMs can be difficult if you is smoother.” don’t have a programme to assist employees. They have to “Those innovations will also help us to ensure the best

40 Airline Routes & Ground Services | Winter 2019 Winter 2019 | Airline Routes & Ground Services 41 PASSENGER EXPERIENCE

possible travel experience for people with services all work in unison for the benefit of want people to travel and explore,” Mayers reduced mobility,” the Swissport spokesperson the passenger. concludes. says. “We are keen for Heathrow to serve as a test- The main trend is to enable people with bed for new technologies and our teams are reduced mobility to travel independently, “We are currently testing different wheelchair constantly trialling new technologies, which the Swissport spokesperson adds. “Service models that enable people with reduced have the potential to transform our service in providers … and airports must work together mobility to travel more independently. Other future,” Marchant says. to build an efficient infrastructure that meets examples we are looking at are a remote-guide- the needs of travellers with special needs system for blind passengers and a lanyard Among such developments: “The introduction but also allows more freedom in the way of system for people with hidden disabilities.” of SignLive, a real-time British Sign Language interpretation service, and AIRA, a similar Of course, the Swissport spokesperson points service to help people who have a visual out: “The challenge with automation on PRM impairment, demonstrate how technology services is that the special needs of disabled is already making an impact on the service travellers are very diverse. We would not be that we’re able to offer. Both of these able to meet these needs with a ‘one size fits services, which help to give passengers their all’ solution. independence when travelling, are free of charge and available 24 hours a day.” “Our focus is therefore on optimising our infrastructure. By implementing more modern Future trends travellators, large electric cars or larger lifts we Mayers predicts “a huge increase” in PRMs in want to ensure a smooth and enjoyable trip for the US over the next 20 years. The main reason people with reduced mobility.” for this is the ageing population that is already driving growth in this passenger group. Like Multifaceted Atlanta, meanwhile, is about to test new Marchant, he also highlights the improvement travelling.”approach technology to help PRMs. “We will be starting in services to help individuals with restricted a trial in the next couple of months, using mobility and give them more opportunities to Between 5-6 November, Emirates autonomous wheelchairs and vehicles to get travel. hosted the International Air Transport people from A to B in particular areas,” says Association’s (IATA) first Global Accessibility Symposium in Dubai. Mayers. “The public is also more aware of the services available and the rights of disabled travellers,” Referring to the resolution on For instance: “The definition of an accessible he considers. “People aren’t ashamed to passengers with disabilities made at the route at an airport ends at the door of the request help anymore, whether they need a association’s annual general meeting that terminal; the distance between a car rental wheelchair or they’re travelling with a child, or took place in June 2019, IATA director or a train to that point is not included, so they’re an older passenger.” general and CEO Alexandre de Juniac there’s a gap. We already have driven vehicles said: “Industry standards have made air transport accessible to passengers with for this but we could supplement those with An airport that does not prepare for the disabilities for decades. But we recognise autonomous vehicles.” continuing rise in numbers of PRMs, especially that more needs to be done to ensure elderly passengers, will face increasing the seamless journey that we owe our At Heathrow, Marchant also has plans to difficulties in the future, Mayers warns. customers.” continue improving the PRM travel experience. There is already a great deal of assistance “In future, we hope to offer a seamless for people who are blind or travelling with Tim Clark, president of Emirates, said: experience to a growing number of passengers support animals, for example – but the “As an industry, we need to do more through championing a multifaceted with reduced mobility,” she states. population is going to keep ageing, so solutions approach to accessibility, and working like autonomous vehicles and educational with our industry partners to make “Technology will be key to us personalising campaigns about PRM services will be bigger strides in responding to the our service and will play a role in bringing important. diversity of disabilities, the multiplicity the aviation industry together, making the of access needs, and unique travel industry’s approach more joined up, so that As such: “I do a lot of outreach through our circumstances of an aging travel service providers, airlines, the airports of ADA committee via advertisements, podcasts population.” departure and arrival and onward travel and interviews with pressure groups. We

42 Airline Routes & Ground Services | Winter 2019 Winter 2019 | Airline Routes & Ground Services 43 OPINION OPINION

Infrastructure Operations Change of

“ CORSIA In the short-to- European ATM Improvements Optimizing Fuel New initiatives are needed medium term, Cost Index Management to deliver on the aviation carbon offsets sector’s climate goals, writes sourced from Taxiing with George Anjaparidze. other sectors and Flexible some engines usage of shut down sustainable aviation China military fuels will make the Redesign space Use of Cabin Takeoff largest contributions Ground Pilot and landing RVSM Russia Weight to achieve carbon Next Gen Power etc Reductions Technique procedures etc neutral growth’ – Chart:

if this is too long, Cost effective CO2 reductions within aviation in 2030 delete ‘In the short- Source: Veritas Global using data from IATA march 2016 presentation (Mckinsey & Company, IATA) to-medium term’ Note: Jet fuel price assumption $90 per barrel, the size of each rectangle is in proportion to the share of CO2 abatement potential of the labeled measure.

The latest policy brief from the Harvard within the sector can also make an that ignores unneeded extra weight to that mobilises industry stakeholders addressing the climate crisis, airlines “ Project on Climate Agreements provides important contribution. Beyond fleet be carried on flights leading to more fuel and the climate community to get need to demand better performance rare insight into the inner workings of renewal and load factor performance, burn. These issues can be overcome only governments to prioritize reforms at air of their supply chain. By developing a It is shareholders, the airline industry. The extraordinary improvements in infrastructure and through additional interventions that navigation system providers. globally harmonized set of performance agreement on international aviation airline operations can deliver about target the specific barriers. If the within metrics for its supply chain, in a way not Greta, that explains the key role played by the airline 20 per cent of the cost-effective CO2 sector abatement measures (see chart) For airline operations, a targeted capacity that incorporates climate issues, can industry in the design of the Carbon emission reductions needed to achieve are fully implemented, annual cost saving building initiative is needed that will help benchmark performance and drive should be most Offset and Reduction Scheme for the CNG2020 target over the next of US$37 billion in 2030 will be achieved first diagnose problematic practices and better business outcomes in the aviation International Aviation (CORSIA). decade. by the aviation industry. subsequently offer trainings on how to industry. demanding of the implement solutions. A broader focus aviation industry The scheme addresses the growth in About 60 per cent of the within sector For comparison, IATA forecasts global on addressing barriers is also warranted, It is shareholders, not Greta Thunberg, total CO2 emissions from international abatement opportunities can be airline profits in 2019 at $28 billion. In for example helping remove political that should be most demanding of the on performance aviation above 2020 levels. CORSIA will realised from undertaking infrastructure contrast to generating cost savings, barriers in markets where access to the aviation industry on performance against save the aviation industry tens of billions improvements (mostly at air navigation purchasing offsets will impose additional latest environmentally friendly aviation climate metrics. Realising cost-effective against climate of US dollars each year by avoiding a system providers). Airline operations, in costs to industry. To meet CNG2020 technologies is hindered. Crucially, these opportunities within the sector and costly patchwork of overlapping and the air and on the ground, make up the industry will spend over $7 billion in 2030 initiatives would need to complement taking a proactive stance on the climate metrics. distortive measures. remaining share (see chart). on offsets (assuming a global carbon and go well beyond existing efforts. issue is good for business. Collective price of $20). Given the options, the industry leadership is needed to propel In the short-to-medium term, carbon Cost-effective CO2 emission reduction priority needs to be to target the cost- In addition, the industry needs to become this change and address the climate crisis. offsets sourced from other sectors and opportunities within aviation are not effective abatement opportunities within more proactive on the climate issue. Just sustainable aviation fuels will make the being realised because of “non-price the sector. as consumers have placed new demands About the author: As senior economist at Direct Link to Paper: largest contributions to achieve carbon barriers.” Meaning there are non-financial on airlines, airlines as consumers need to the IATA chief economist office, George https://www.belfercenter.org/sites/default/ neutral growth from 2020 (CNG 2020). factors that prevent the realisation of To deliver on the opportunities within the also be more vigilant of their supply chain Anjaparidze led the design of CORSIA and files/files/publication/191021-anjaparidze- these opportunities. sector, the industry needs to introduce performance. In many cases, the on the was the lead economist on air cargo and viewpoint.pdf However, it is wrong to think that interventions that target the barriers that ground supply chain CO2 emissions will aviation infrastructure. He is currently Source: the climate issue has somehow been One example is a restriction on the use are preventing the implementation of fall outside the scope of CORSIA. CEO of Veritas Global, a Swiss economics https://www.veritasglobal.ch/post/the- outsourced through the use of offsets of airspace leading to longer flights. these measures. For infrastructure, a new and strategy think tank and advisory extraordinary-climate-agreement-on- or sustainable aviation fuels. Measures Another example is a corporate culture advocacy initiative needs to be launched Nevertheless, as stakeholders in service: www.veritasglobal.ch international-aviation

44 Airline Routes & Ground Services | Winter 2019 Winter 2019 | Airline Routes & Ground Services 45 BUSINESS

Airports, take note: how Explore business to put resilience first Airports face a range of challenges in a rapidly shifting modern environment: from climate opportunities change to technology, and even within their own communities. A report by Thornton Tomasetti and Resilience First aims to unpick these issues and produce an airport guide to in Indianapolis resilience, writes William Hayes Airports are constantly looking for ways to adapt in a rapidly changing business Indianapolis, USA environment, and one word stands out as a mantra for survival in trying times: 4-6 February 2020 resilience.

“Resilience is the ability to absorb and adapt in a changing environment,” said Richard Look, Senior Resilience Consultant at global engineering firm Thornton Tomasetti, which specialises in tackling the issue of resilience at all scales, from cities to buildings and organisations. Stansted was one of the airports looked at in Thornton Tomasetti’s resilience report “And so when you break that [resilience] down a bit further, it’s the ability of any entity or organisation to absorb a shock “Our study has revealed that there is of technological issues coming into the - like a flood or a fire etc - to absorb that still much to do to make the component arena of airports which are going to be shock and not be derailed by it.” parts work more harmoniously and disruptive and force change,” said Look. holistically. In this way, greater value for A thriving centre for business Thornton Tomasetti teamed up with all can be achieved in both normal and “The organisations which have high Resilience First - a not-for-profit business abnormal situations.” agility…they have much less change Centrally located in the USA, Indianapolis serves as the organisation that aims to improve resistance, because they have to keep economic and cultural hub of Indiana. Discuss new market business resilience in urban areas - to According to Look, the two main forces on moving the organisation through a produce a study of airports and their at work within the area of resilience are change or transformation cycle.” opportunities and negotiate future air services with senior business partners, in order to identify called shocks and stresses. A shock, as route development professionals in an inspirational and best practice and areas for improvement previously mentioned, is a one-off event “And so in the short, medium and long dynamic city built for events. in resilience, especially agility. that causes some disruption and then term, more agile organisations should fades away – a fire, security breaches, survive better in the future, take advance routesonline.com “Airports are microcosms of business cyber-attacks, to name but a few. But of any opportunities and sidestep any communities—in effect, mini-cities— stresses are forces that are constantly hazards.” where companies are working together moving, with technological change being for the common purpose of serving a key example. A quick note on agility – for the purposes customers,” said Robert Hall, Executive of this report, Look used the McKinsey Director of Resilience First. “We know that there’s a whole series definition for the concept, which is: the

Hosts of Routes Americas 2020 Winter 2019 | Airline Routes & Ground Services 47

RAM20 - A4.indd 1 09/12/2019 16:19 BUSINESS

ability of an organisation to renew itself, to the entire business community that critical to the economy - so we get a adapt, change quickly, and succeed in a surrounds them. philosophical debate about extinction rapidly changing, ambiguous, turbulent rebellion and about how it goes about its environment. Indeed, the issues that confront airports business. Does it really want to damage are global in nature – take the climate the economy, is there not a way we can And there are two main ways you can crisis, for example. Protests at airports achieve both things: not damaging the orient your organisation in such a way, became something of a trend in 2019 economy, while still reducing our carbon said the Senior Resilience Consultant: you and are surely set to continue in years dioxide emissions?” can create hard-engineered solutions to to come, unless the aviation industry protect yourself, i.e. make your structures takes urgent action to mitigate its carbon Another way Look foresees airports more robust, or add layers of security; footprint. changing in the future is through the use or you can be more adaptive, by creating of a technology which hit headlines for a community of people, a culture within “It’s interesting that EasyJet is moving to the wrong reasons with Uber, but has also your organisation which accepts a certain electric,” said Look, referencing the British been trialled at Heathrow in the form of way of thinking. budget airline’s plans to test a nine-seater driverless baggage dollies. electric plane as early as next year. “So in this report we were looking at that “There’s a lot of speculation at the second aspect,” said Look. “So looking “And I think airlines moving to electric moment about self-driving cars, self- at airports, primarily Stansted and the pose huge infrastructure issues on guided vehicles are going to come to Group, and also some airports, because there’s this huge maturity fairly rapidly,” said Look. of their organisations, and how well they amount of energy they need. But on the are structured in terms of their culture to other hand, it may - definitely may, not will “They also pose a huge change to the be agile, for all intents and purposes.” - allay some climate fears, depending on way airports function, because airports where the energy comes from. get a significant amount of revenue from Look was keen to stress that the guidance car parking. Would car parks become an laid out in the report is very generic and “So it’s an interesting one, because irrelevant piece of infrastructure when could be helpful, not just to airports, but airports are obviously absolutely people can just send their cars home, rather than paying airport fees?”

All things considered, the take home message from the report, said Look, is the element around strong leadership being important, strong leadership that engages the business, but also business partners and the business community.

“[This] helps reduce barriers to change, but also improves information flow - so when you’re dealing with shock it will improve your ability to deal with shock, and dealing with stress it will reduce change resistance and therefore you will be able to adapt to future change more quickly,” said Look.

“Ultimately we are on a change curve which is constantly accelerating, so we don’t know what the change will be, but we do know that change is coming, and it’s accelerating. So the quicker you “Airports are microcosms of business communities—in effect, mini- can identify and adapt to that change, cities— where companies are working together for the common the quicker you will be able to take purpose of serving customers.” – Robert Hall competitive advantage and mitigate any losses.”

48 Airline Routes & Ground Services | Winter 2019 Amadeus solutions for ground handlers

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