Uncle Sam's Ground Handling Year
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WINTER 2015/SPRING 2016 AIRLINE GROUND AGS SERVICES www.ags-airlinegroundservices.com WESTJET HANDLING WHAT IF WORLDWIDE DIRECTORY ACROSS LESSONS FROM UK SAYS OF GROUND THE WAVES THE CLASSROOM ADIOS TO EU? SERVICE PROVIDERS From XS to XXL. Fraport provides the perfect service tailored to every plane. Every airline customer is unique – and should expect customized service. A ground handling partner with years of experience and expertise, Fraport AG knows exactly what each airline needs. Together, we develop the right solutions designed to meet your specific requirements. Flexibility is a major advantage, especially when we have to get late arriving planes out even faster. We know the processes on the ground and can move into action with speed, precision and efficiency. We put performance first, not size. Let us be your flexible ground handling partner. Contact the Fraport ground services: phone +49 (0) 69 690-71101 / [email protected] / www.fraport.com Fraport. The Airport Managers. EDITOR’S LETTER | WINTER 2015/SUMMER 2016 WINTER 2015/SPRING 2016 AIRLINE GROUND LETTER FROM AGS SERVICES THE EDITOR www.ags-airlinegroundservices.com WESTJET HANDLING WHAT IF WORLDWIDE DIRECTORY ACROSS LESSONS FROM UK SAYS OF GROUND THE WAVES THE CLASSROOM ADIOS TO EU? SERVICE PROVIDERS here is an old adage in journalism: follow the money. Ground handlers, like the rest of aviation, are reaping PARVEEN RAJA Publisher the benefits of lower prices at the pump that the world [email protected] has enjoyed this year. Our look at the American ground handling market discovers that the lower prices are Tallowing airlines to slash fares – thus attracting more passengers that HARLEY KHAN Head of Commercial have to be handled. [email protected] Iraq has been selling its low grade ‘Basra heavy’ crude on global markets for as little as $30 a barrel. It is no surprise that there are now BHAVI PATEL at least 100 million barrels being stored on tankers offshore. Events Coordinator [email protected] According to the London Daily Telegraph, Goldman Sachs has told clients that the glut of oil on the global market combined with mild weather from a freak El Niño this winter could send prices SHOBHANA PATEL Head of Finance plummeting to $20 a barrel. Early last year, oil was $110 a barrel. [email protected] At the same time, the Fight for 15 in the US may produce higher staff and personnel costs for US handlers as staff agitate for a living CHARLOTTE WILLIS wage. Many bean-counters may have sharp intakes of breath when Events and Circulation faced with a higher salary costs but surely a better paid staff are a [email protected] better motivated staff? In this issue, we look at the acquisitions by HNA of Swissport SHELDON PINK and Platinum Equity of Worldwide Flight Services (WFS) and the Creative Director [email protected] interesting Indian ground handler who has become an airline. Cybersecurity on the apron remains a hot topic and we look at the dangers of hacking the increasing number of computers used in GSE. Address changes and subscription orders to: [email protected] AGS readers outside the UK, and especially outside of the EU, may ISSN 2040-476X not be familiar with the prospects of Britain voting to stay in or leave the Union. While many might say this is simply a political matter for EDITORIAL CONTRIBUTORS Chris Lewis, David Smith, the UK government and people, global handlers with, say, a branch Eugene Gerden and Martin Courtney at London Heathrow and Paris CDG could find they have one station inside the EU and one outside the Union. At the time of going to press, No 10 Downing Street has remained PUBLISHED TWICE A YEAR BY tight-lipped as to a likely date for a vote on EU membership. We will EVA International Media Ltd Boswell Cottage, 19 South End have to wait and see. Q Croydon, London CR0 1BE Tel: + 44 (0) 20 8253 4000 Fax: + 44 (0)20 8603 7369 Website: www.evaint.com PRINTED BY Headley Brothers The Invicta Press, Lower Queens Road Ashford, Kent, TN24 8HH, UK DISTRIBUTED BY Ascendia EVA INTERNATIONAL MEDIA LTD PUBLISHERS & EVENTS SPECIALISTS JAMES GRAHAM Issue 20 © 2015 | www.evaint.com Editor Content may not be reproduced in any format without written permission from [email protected] EVA International Media Ltd www.ags-airlinegroundservices.com WINTER 2015/SPRING 2016 Airline Ground Services 1 CONTENTS | WINTER 2015/SPRING 2016 CONTENTS 1 Editor’s letter 4 4 WestJet hops the Atlantic Canadian low-cost carrier WestJet has jumped the Pond with new services to the EU. Has it been a smooth landing? 8 The ground handler that became an airline Fifteen years after founding a ground handling company, the demise of Air Deccan prompted Indian entrepreneur Shyson Thomas to take to the skies to capture some of India’s booming domestic passenger market 10 Uncle Sam’s ground handling year There were mixed fortunes for airline ground handling activity in the United States in 2015 as the year saw deals inked and labour unsettled 16 Cooking up competition In-fl ight catering is dominated by two giants: LSG Sky Chefs, which provides 578 million meals a year for 300 airlines and Gate Gourmet, which supplies 250 million meals a year at around 120 airports. Can smaller operators get a slice of the pie? David Smith looks into the kitchen 20 Green initiatives on view at Frankfurt Being green is not enough – initiatives must be visible to passengers to avoid charges of greenwashing 22 Ground handling training in a virtual classroom Today, almost all ground handlers must have valid training according to their job description. The Internet can now bring learning to the workplace around the clock 25 Greening airside operations The 21st-century ground handler has a role to play in creating and delivering sustainable, green airports worldwide, discovers James Graham 28 Money moves in the billion-dollar business 30 In? Out? Will Brexit shake the airline industry all about? To paraphrase Groucho Marx, why join a club that wants you as a member? Noted transport journalist Chris Lewis looks at what might happen to airline ground handling in 16 the UK if the country says ‘adios’ 32 Regional focus: Russia 32 On-ramp data security more critical than ever Few cyber security attacks on ground handling IT systems have been recorded to date, but 37 operators cannot afford to be complacent, discovers Martin Courtney 37 From the moment the chocks are set Janet Wallace, director, airport services, contracts & administration for Air Canada looks at whether the industry has reached ‘peak’ turnaround. AGS editor James Graham asked the questions 38 SGS IPO massively oversubscribed /New logo new member for ground.net 39 Scandinavian Airlines in GSE sale and leaseback 41 Smart use of Smartphones at JFK 42 T-Systems reinvents ground handling software with GHAMS 43 Worldwide Directory of Ground Service Providers 2 Airline Ground Services Winter 2015/Spring 2016 www.ags-airlinegroundservices.com FEATURE | WESTJET AIRLINES WESTJET HOPS THE ATLANTIC Canadian low-cost carrier WestJet has hen WestJet Airlines, a Calgary-based low- cost carrier established in 1996, featured jumped the Pond with new services to the in Airline Ground Services’ Winter 2013/ EU. Has it been a smooth landing? Spring 2014 edition, it operated an exten- sive network across Canada, the US, Mexi- Wco and the Caribbean. Two years later, it has taken its services to the next level by launching two summer services to the UK and Ireland and announcing a third service to another European Union destination. The start of routes to Glasgow and Dublin in May, 2015, to be followed in 2016 by the launch of a service to Lon- don Gatwick, means the carrier has entered one of the most competitive traffi c lanes in the world. As there is not a ton of growth among new fl yers crossing the Atlantic, will WestJet have to bear down on what it pays for ground handling to stop the bottom line bleeding red? Andrew Kay, WestJet director of International Airports, considers that its partnerships with third party ground handlers will ensure the expansion is profi table. He says: 4 Airline Ground Services Winter 2015/Spring 2016 www.ags-airlinegroundservices.com FEATURE | WESTJET AIRLINES “We do what we do to liberate Canadians regards to ground handling operations. from the high cost of air travel. Apart That is why they undertook due diligence from Air Canada, there are many other checks on the new markets. carriers our guests or potential guests He says: “There was nothing that can book with. Our partners are also in was signifi cantly surprising. We do this business to make sure our guests our best, through publications like Air- keep coming back. We work with these line Ground Services as well as industry handling companies to ensure a success- events and groups, to remain up to date ful relationship.” in as many jurisdictions as possible. Glasgow Airport (GLA) welcomed “There have been some additional WestJet as a new customer on 30 May “We do our best, through procedures we have needed to put into with the launch of a daily service until 31 publications like Airline Ground place to ensure we are in compliance October. The same-aircraft daily service Services as well as industry events with European passenger rights legisla- begins in Toronto with a stop in Halifax. and groups, to remain up to date in tion. At this point, in using both Men- The airline is Menzies Aviation’s fi rst Ca- as many jurisdictions as possible” zies and SkyHandling Partner, we have nadian carrier at GLA.