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Economic impact of ground handling industry

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Economic impact of ground handling industry

  1. 1. Brendan Korman April 25, 2014 TIM 353 Dr. Chi Air Transportation Management The Ground Handling Industry and its Economic Impact on Aviation Sponsored by:
  2. 2. Overview of GSPs Main Responsibilities • Passenger services • Aircraft turnaround • Baggage handling • Cargo transport • Airport Lounges • Ground Service Providers • Operates from when the time the aircraft is first and last spent on the ground. • Speed, efficiency, and accuracy are essential attributes for GSPs NASCAR Pit Crew American Airlines audit for Aloha Contract Services (ACS) Lihue Airport (Kauai) March 2014
  3. 3. GSPs on Worldwide Scale • Aloha Contract Services (ACS) – • Delta Global Services (DGS) – • Swissport International Ltd. (SAS) – • Worldwide Flight Services (WFS) – • AeroGround Flughafen München GmbH – • Baltic Ground Services (BGS) – • Saudi Ground Services (SGS) – • Abu Dhabi Airport Services (ADAS) –
  4. 4. Layers of Operation Marshaling Safety Measures Passenger Steps Baggage Handling Ramp Services Push Back and Towing Aircraft Belt Loader
  5. 5. Layers of Operation Deicing Toilet servicing, potable water, dematerialized water Cleaning of cockpit windows, wings, nacelles and cabin windows Fueling, Wheel, and Tire Check On-ramp aircraft services Repair of Faults Ground Power Supply Routine and Non-Routine Maintenance
  6. 6. Layers of Operation On-board Services • Cleaning • Catering • In-flight entertainment • Minor servicing of cabin fittings • Alteration of seat configuration
  7. 7. Layers of Operation External Ramp Equipment Mail and Equipment Loading Cargo Loaders Catering Loaders
  8. 8. Layers of Operation Passenger Service (PAX) Passenger & Crew Transport ServicesBaggage Agents and Porter Service TicketingSafety and Wheelchair Assistance Airport Lounge Services Passenger Boarding Lei Greeting Check In
  9. 9. Safety Concerns • Case Study – Ground Handling Operations Safety Team (GHOST) - A Civil Aviation Authority (CAA) initiative to address / share the learning from ground handling issues with the aim of improving safety. (UK) - GHOST is made up of a main group which develops strategies to mitigate the safety risks from ground handling and supports activities in the UK and elsewhere. - There are also two subgroups, one addressing loading errors and one overseeing ‘capability issues’ and human performance • Case Study - Exposure to high levels of aircraft noise (>63 dB v≤51 dB) is associated with an increased risk of cardiovascular disease (, an online British medical journal) • Results - Averaged across all airports and using the 90th centile noise exposure metric, a zip code with 10 dB higher noise exposure had a 3.5% higher cardiovascular hospital admission rate, after controlling for covariates.
  10. 10. Economic Implications Jobs in the Industry • Aviation ground handling companies offers a wide range of jobs in services and administrative area. • Different aviation ground handling companies also offers higher level of jobs which involves higher qualification and particular professional skills. • The lower level jobs are offered in different sections of ground handling services. • There are not many restrictions for recruitment of service providers. • The future is quite bright in this particular field if the companies further contribute efforts to improve and raise their standards.
  11. 11. Information Systems and Technology Accelya • Accelya’s FinesseGH offers a design of automatic platform to solve the operational and financial problems experienced by ground handling companies. • By this the companies can keep record of all customers and contracts across the globe. • FinesseGH can help in managing the system of airport in that manner every aircraft to be served. Sabre Airline Solutions • In 2009, more than 287 million revenue passengers were checked in for their flights by SabreSonic Check-in. • Empowers customers with a greater freedom of choice regarding when, where and how to check-in – Web, kiosk, mobile, agent – the • SabreSonic Check-in has superior load management capabilities to generate automatic transfer of passenger and baggage data. This ensures the correct weight and balance distribution on the aircraft. • Automating the collection of fees means that you are no longer dependent on manual intervention by your check-in team, eliminating the human impulse to waive fees thus allowing them to go uncollected.
  12. 12. Future of GSPs Market Trends - A report by the International Air Transport Association (IATA) suggests up to half of ground handling services in airports around the world are outsourced. - Hub airports have acted as a third party ground handling unit in major destinations and some airports control the entire ground operations of all incoming flights. - Ground handling market is estimated to be worth $347.5 billion in 2014 and is expected to continue its growth with a very quick speed according to the Aircraft Ground Handling System Market - Global Forecasts and Analysis to 2014 – 2019. - Most of the companies have established their own code of ethics in order to make better reputation in the aviation industry. The companies are obliged to follow the laws and regulations and mutual operate in accordance of code of ethics including the rules of correctness, transparency and objectivity. - GSPs contribute in improving quality of facilities delivered at airports. They help to enforce a competitive environment in the aviation industry. - Since the ground handling is a very labor intensive field of work, competition in increasing at the structured quality level.
  13. 13. Grandpa Luis Cartegena – Aircraft Mechanic
  14. 14. Conclusion • Continued signs of value and promise to aviation. • Airlines contract companies to just take care of ground duties. • Speed, efficiency, and accuracy. • Influenced airports and airlines. • Financial incentives increase competition amongst ground handlers. • GSP companies will side by side flourish with airline growth.
  15. 15. “Have a nice flight!”
  16. 16. References • International Air Transport Association, 2013. Ground Handling, International Air Transport Association. Gomez, F; Scholz, D (2009), Improvements to ground handling operations and their benefits to direct operating costs, Hamburg University of Applied Sciences. Onayoade. N.d. The future of aviation ground handling. Ghana MMA. Retrieved from<> • Eva International Media LTD. 2013. WHAT LIES AHEAD? Retrieved from< issues/airline-ground-services-june-013/what-lies-aheads> • Airline ground services. 2012.A BALANCING ACT: THE MARKET FOR GROUND HANDLING SERVICES. Retrieved from< market-for-ground-handling-services> • "Aircraft Ground Handling System Market - Global Forecasts and Analysis to 2014 - 2019". 2014. Research and Markets. Retrieved from< 249666291.html> • A.D. Balk, 2008. Safety of ground handling. Nationaal Lucht- en Ruimtevaartlaboratorium.Code of ethics. 2011. Società per Azioni Esercizi Aeroportuali S.E.A. retrieved from <>