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Inter Airport Excellence for the Airport Industry SUMMER/AUTUMN 2015 AIRLINE GROUND AGS SERVICES www.ags-airlinegroundservices.com MERGERS AND SAFE GROUND CONSIDERING WORLDWIDE DIRECTORY ACQUISITIONS HANDLING: AVIATION OF GROUND SERVICE ROUND-UP BEST PRACTICE INSURANCE 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 | SUMMER/AUTUMN 2015 SUMMER/AUTUMN 2015 AIRLINE GROUND LETTER FROM AGS SERVICES THE EDITOR www.ags-airlinegroundservices.com MERGERS AND SAFE GROUND CONSIDERING WORLDWIDE DIRECTORY ACQUISITIONS HANDLING: AVIATION OF GROUND SERVICE ROUND-UP BEST PRACTICE INSURANCE PROVIDERS elcome to the Summer/Autumn 2015 edition of AGS magazine. In this issue, we look at consolidation PARVEEN RAJA among both airlines and handlers, as mergers and Publisher [email protected] acquisitions continue to shape the aviation industry. Meanwhile, carriers are thinking creatively, using Wpartnerships to build better networks and expand their reach into new IAN TALBOT Sales Executive markets around the world. [email protected] We hear from underwriting executive Simon Abbott on the subject of ground damage – and who pays for it. The consequences BHAVI PATEL of ground damage are far from insignifi cant, and Abbott suggests Events Coordinator greater regulation of GSPs could be the way to improve safety on the [email protected] ramp. This theme is picked up again as AGS examines developments relating to IATA’s Ground Operations Manual – and looks ahead to the SHOBHANA PATEL Head of Finance imminent 28th IGHC. fi [email protected] Two articles look at IT in this edition: James Graham considers how IT-based services benefi t numerous sectors of the aviation world, while CHARLOTTE WILLIS David Smith examines the role of IT and logistics in airline catering. Events and Circulation We also take an overview of developments in the Asia Pacifi c [email protected] handling market, and we hear from TCR, which recently expanded its presence in Scandinavia. SHELDON PINK Finally, having reintroduced our directory of ground service Creative Director [email protected] providers in the last edition, we welcome any updates to that section. Please advise us of any changes or omissions. AGS welcomes your feedback and any interest in contributing an Address changes and subscription orders to: [email protected] article or interview. I hope you enjoy this issue of the magazine. Q ISSN 2040-476X EDITORIAL CONTRIBUTORS Simon Abbott, Bernard Fitzsimons, James Graham, Megan Ramsay and David Smith PUBLISHED TWICE A YEAR BY EVA International Media Ltd Boswell Cottage, 19 South End Croydon, London CR0 1BE Tel: + 44 (0) 20 8253 4000 Fax: + 44 (0)20 8603 7369 Website: www.evaint.com PRINTED BY Headley Brothers The Invicta Press, Lower Queens Road Ashford, Kent, TN24 8HH, UK DISTRIBUTED BY Ascendia EVA INTERNATIONAL MEDIA LTD PUBLISHERS & EVENTS SPECIALISTS KIRSTY POWELL Issue 19 © 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 SUMMER/AUTUMN 2015 Airline Ground Services 1 CONTENTS | SUMMER/AUTUMN 2015 4 CONTENTS 1 Editor’s letter 4 Working together The aviation sector has gone through numerous changes in the past, not least of which has been a trend for consolidation among carriers. Looking at Europe in particular, how have mergers and acquisitions among airlines filtered down to affect the handlers that serve them? 6 Carriers think smart Tough times call for more creative approaches to developing route networks. Airlines are increasingly exploiting partnerships and using each others’ hubs to penetrate into new territory. 12 Handlers start to get it together Once highly fragmented, the airline handling industry is showing strong merger and acquisition activity as companies strive to offer their customers a truly global service. 18 Ground damage – who pays? Simon Abbott, underwriting executive for worldwide aviation insurance provider Global Aerospace, looks at who bears the cost of ground damage to aircraft. 20 The fusion of catering and logistics Airline catering is a huge undertaking. David Smith looks at how airlines and catering companies are employing logistical and IT solutions to support the operation. 26 "TJB1BDJlDSPVOEVQ Bernard Fitzsimons reviews recent activity in the world’s most dynamic 18 air transport region. 32 IT connects aviation 32 Whether an organisation is an airport, air navigation service provider (ANSP), ground handler or airline, IT-based services deliver tangible benefi ts to the organisation, discovers James Graham 37 Scandinavian expansion Brussels-headquartered GSE provider TCR began operations in Norway in 2011 – and it is continuing to grow its footprint in the surrounding region. 39 Sharing best practice Effi cient, safe airline ground handling services are the bedrock of the modern aviation system. To ensure continued improvement, the industry is focusing on safety, quality, transparency and sustainability across all its operations. 43 Worldwide Directory of Ground Service Providers 2 Airline Ground Services Summer/Autumn 2015 www.ags-airlinegroundservices.com Your trusted partner Available at 27 airports in the kingdom of Saudi Arabia, Saudi Ground Services Company is determined to provide its client airlines the best services for a smooth & efficient operation with safety and on-Time performance sgsaviation.com.sa FEATURE | CARRIERS & HANDLERS WORKING TOGETHER: MERGERS AND ACQUISITIONS The aviation sector has gone through numerous changes in the past, not least of which has been a trend for consolidation among carriers. Looking at Europe in particular, how have NFSHFSTBOEBDRVJTJUJPOTBNPOHBJSMJOFTlMUFSFEEPXOUPBGGFDUUIFIBOEMFSTUIBUTFSWFUIFN here are four large, pri- as well as at Malabo and Bata airports in marily full-service airline Equatorial Guinea. Customers include groups in Europe. Air IAG airlines BA, Iberia and Vueling. France-KLM, Internation- al Airlines Group (IAG), MUTUAL STRENGTHS TLufthansa Group and SAS Group Air France-KLM came into being in have all grown over the years through 2004, with the merger of Air France and mergers and/or acquisitions. KLM Royal Dutch Airlines. The group IAG is the most recently formed air- also includes Martinair, which provides line grouping in Europe, having started cargo-carrying services in addition to trading in early 2011. It comprises the the freighter fl ights offered by the two UK’s British Airways (BA), Spanish car- other airlines. Air France and KLM each rier Iberia and low-cost carrier Vueling, run their own operations from their plus short and medium-haul subsidiary respective hubs in Paris and Amsterdam Iberia Express, the cargo-carrying arms Peter Schelvis, group chief procurement but their procurement divisions – of BA and Iberia, and UK domestic and offi cer at Air France-KLM including the procurement of handling short-haul carrier British Midland In- services – have been merged. ternational (bmi) – the latter formerly 2014, adding a new station to the han- According to Peter Schelvis, group part of the Lufthansa Group. dler’s network. chief procurement offi cer at Air France- In the months following the creation BA itself provides ground handling KLM, the procurement organisations of of IAG, while handling costs rose, joint services both for its own fl ights and for Air France and KLM “were combined in airport handling procurement offset these external clients. In September last year September 2008, taking full advantage increases to some extent, as the Group it was selected to provide technical han- of their mutual strengths”. Air France- synergy programme took effect. dling services for Qatar Airways B787 KLM Procurement is responsible for the BA fl ights at Heathrow, Glasgow, fl ights at Edinburgh; BA also began acquisition of goods and services for the Manchester and Edinburgh are handled providing maintenance services for the whole Group. by UK-based Menzies Aviation, which Middle Eastern carrier’s A380 fl ights at Schelvis explains: “The procurement began passenger services, ramp han- Heathrow in October 2014. (Qatar Air- organisation generates added value dling and lounge and ticketing services ways bought a 10 percent stake in IAG through cost-effective solutions direct- for BA and BA CityFlyer at these loca- earlier this year.) ed at connecting internal departments tions in 2012 – adding an extra 19,500 Iberia Airport Services, meanwhile, and external suppliers. Our mission is fl ights per year to its portfolio. is the handling arm of BA’s sister carrier. to secure a sustainable competitive ad- Menzies was already well established It provides ramp, passenger, operations vantage for the group, derived from cost with other carriers at all four stations, and cargo handling services for over leadership and procurement profession- and had in fact been
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