Guidance to Members Template on Ground Handling Service Provider Agreement

GUIDANCE TO MEMBERS TEMPLATE ON GROUND HANDLING SERVICE PROVIDER AGREEMENT

Version 1.0 September 2018

Approved by the ACI World Governing Board 57th meeting on June 17th 2018

ACI Ground Handling Service Provider Agreement

PURPOSE

This document is provided as guidance to ACI Members in drafting and negotiating an agreement with a Ground Handling Service Provider (GHSP). It is based on best practice gathered through the ACI Ground Handling Working Group and aims to support the ACI Ground Handling Policy Paper published in 2016, which states that “Airport operators should require each Ground Handling Service Provider to sign a license or concession agreement in order for it to operate on the airport”.

The main content of this document is a template for a Ground Handling Service Provider Agreement. The airport operator should modify and adapt the contents to fit local context, laws, regulations, customs and practices as well as the needs established when negotiating the agreement.

The first portion of this document contains a number of initial considerations the Airport Operator should review prior to establishing such an agreement.

CAUTIONARY NOTE AND DISCLAIMER

The standard clauses provided herein are to be used with discretion and are not to be applied without regard to the context and local laws, regulations, customs and practices.

This document is not intended to be considered legal advice. It is strongly recommended that legal advice be obtained when concluding such an agreement with a Ground Handling Service Provider.

ACI and its employees do not accept any responsibility or liability for the incorrect use of the guidance material provided.

DOCUMENT USE

Throughout this document, options have been provided for the Airport Operator to develop the agreement, as well as parts to be completed. The options allow for the best possible fit to the local environment, however, these may still need to be adapted or modified. In some cases, comments or additional information have been added into various clauses (between brackets and in italics) to provide additional guidance.

Version 1.0 ACI World Safety and Technical Standing Committee Page 2 Ground Handling Working Group

ACI Ground Handling Service Provider Agreement

GENERAL CONSIDERATIONS

The following elements are important to be considered by an Airport Operator before negotiating a new Ground Handling Service Provider Agreement.

a) Scope of services: the menu of services included in the scope of the agreement should be carefully considered according to the need for smooth and efficient operations at the airport.

b) Term of Agreement: investment in GSE is substantial and a sufficient term should be provided to enable the GHSP to amortize its investment and provide quality equipment, especially where there is a provision for equipment renewal.

c) General Aviation: define whether the concession agreement will include or exclude general aviation.

d) Number of handling companies: Factors such as aerodrome capacity, apron congestion and the safety of apron operations may be justification for limiting the number of handling companies, within the limits of applicable competition laws.

e) Temporary labour: the use of temporary labour may be contentious. Adequate monitoring of training provided for temporary personnel must be considered to ensure it meets the same standards as for full time employees.

f) Self-handling: the entitlement of airlines to self-handle must be clearly established in rules and guidelines.

g) Service Levels: these should be defined and agreed as the impact of poor service can also affect the airport which may suffer reputational damage or loss of revenue.

h) Equipment or resource pooling: such arrangements can provide for efficiency, standardised quality of service and best use of available space as well as reduction of costs.