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AGSAIRLINE GROUND SERVICES
WINTER 2016/SPRING 2017

 AGS
                                                  AIRLINE
                                                  GROUND
                                                  SERVICES

www.ags-airlinegroundservices.com

DEALING WITH               SAFETY FIRST:    FOCUS ON           WORLDWIDE DIRECTORY
MISHANDLED                 PRIORITIES FOR   THE ASIAN          OF GROUND
BAGGAGE                    THE FUTURE       MARKET             SERVICE PROVIDERS
AGSAIRLINE GROUND SERVICES
TRANSWORLD’S VISION
 Transworld strives to provide superior ground handling services at AAkIA Airport,
Zanzibar, by investing in airport infrastructure and automation in order to promote
                   tourism by attracting new airlines year round.

“EXCELLENCE IN EVERYTHING WE DO”
                            SERVICES OFFERED
                                  ‡Passenger Services
                                  ‡ Ramp services
                                  ‡ Cargo and mail services
                                  ‡ Load control, Communication, Flight operation
                                  ‡ Airline Carrier Support services
                                  ‡Airport Automation
                                  ‡ Security & Safety
                                  ‡ Baggage Services
                                  ‡ Check-in Services

                     Plot No. 2143, Chukwani, Zanzibar, Tanzania
             Tel: +971-4-805-3000 (UAE) | Tel: +255-772-874-988 (TZ)
                 mail : info@twa-znz.com | Web: www.twa-znz.com
AGSAIRLINE GROUND SERVICES
EDITOR’S LETTER | WINTER 2016/SPRING 2017

LETTER FROM                                                                        AGS
                                                                                                                                          WINTER 2016/SPRING 2017

                                                                                                                                    AIRLINE
                                                                                                                                    GROUND
                                                                                                                                    SERVICES

THE EDITOR
                                                                                  www.ags-airlinegroundservices.com

                                                                                  DEALING WITH               SAFETY FIRST:    FOCUS ON           WORLDWIDE DIRECTORY
                                                                                  MISHANDLED                 PRIORITIES FOR   THE ASIAN          OF GROUND
                                                                                  BAGGAGE                    THE FUTURE       MARKET             SERVICE PROVIDERS

W
                    elcome to the Winter 2016/Spring 2017 issue of
                    Airline Ground Services, published against the               JAMES SHERIDAN
                                                                                 Chairman
                    backdrop of the US presidential elections that took          james@evaint.com
                    place on 8 November.
                                                                                 PARVEEN RAJA
                       Defying the polls, Donald Trump gained the
                                                                                 Publisher
victory over Hilary Clinton in a political upset somewhat reminiscent            parveen@evaint.com
of the surprise EU referendum result in the UK in June. Among the
                                                                                 MEGAN RAMSAY
remarks the president elect made during his acceptance speech was                Editor
a promise to “rebuild” the country’s infrastructure – including its              meganlouiseramsay@gmail.com
airports. At this early stage, it is of course difficult to speculate on the
                                                                                 HARLEY KHAN
details of those promises, but I for one will be watching with interest          Head of Commercial
to see how things unfold during his term of office, particularly with             harley@evaint.com

regard to the aviation industry and its environmental responsibilities.          YASMIN LYDON
    In this edition of AGS, meanwhile, we speak to the heads of two of           Events Coordinator
                                                                                 yasmin@evaint.com
the big handlers – Swissport and WFS – to see how each of them is
settling in to their roles: Eric Born became CEO of Swissport about a            GEMMA KEEN
year ago while Craig Smyth joined WFS much more recently, in August.             Events Coordinator
                                                                                 gemma@evaint.com
    This issue also looks at several aspects of baggage handling,
following on from our update on IATA’s resolution 753 in the Summer              SHOBHANA PATEL
                                                                                 Head of Finance
edition. We consider not just lost luggage and some of the ways it can           shobi@evaint.com
be minimised, but the problem of damaged luggage too.
                                                                                 CHARLOTTE WILLIS
    Safety initiatives, the latest technology updates, luxury lounge
                                                                                 Events and Circulation
design, developments in airline catering, Russia’s clampdown on                  charlotte@evaint.com
monopolies, opportunities in the Asian market and the impact of social
                                                                                 SHELDON PINK
media on ground handling are all considered in these pages – and we              Creative Director
                                                                                 sheldon@evaint.com
gather a range of perspectives on some of the big challenges facing the
industry, too.                                                                   Address changes and subscription orders to:
                                                                                 circulation@evaint.com
    I hope you find something to inspire you as we move towards 2017.             ISSN 2040-476X
It seems likely to be a year of significant change for the world at large,        EDITORIAL CONTRIBUTORS
and potentially for our industry too as a result. Q                              David Smith, Eugene Gerden, Martin
                                                                                 Courtney, Chris Lewis and Anthony
                                                                                 Harrington

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www.ags-airlinegroundservices.com                                         WINTER 2016/SPRING 2017 Airline Ground Services 1
AGSAIRLINE GROUND SERVICES
CONTENTS | 8*/5&3413*/(

                                               CONTENTS
                                                    1   Editor’s letter
 6
                                                    4   Fertile soil: an interview with Eric Born, Swissport CEO

                                                    6   Where next? Thoughts on the future
                                                        of ground handling

                                                    9   1PJOUTPGWJFXJOEVTUSZlHVSFIFBETDPNNFOUPO
                                                        TPNFPGUIFNBJOJTTVFTGBDJOHIBOEMFSTUPEBZ

                                                    14 Upgrading: we catch up with new
                                                       8'4$&0 $SBJH4NZUI

                                                    18 Diverse strategies: different approaches
                                                       UPUIF"TJBOHSPVOEIBOEMJOHNBSLFU

                                                    22 4UBZJOHUIFQBDFEFWFMPQNFOUTJOUIFBJSMJOFTFDUPS

                                                    25 4BGFUZlSTUBDPOWFSTBUJPOXJUI
                                                       ex-IGHC chair Marsha Ragusa

                                                    28 No such thing as a free lunch:
                                                       EFWFMPQNFOUTJOBJSMJOFDBUFSJOH

                                                    32 5IFDPNQMFUFUSBWFMFYQFSJFODF7*1MPVOHFEFTJHO

                                                    36 /BWJHBUJOHUISPVHIUIF5XJUUFSTUPSN
                                                       NBOBHJOHTPDJBMNFEJB
                                      14
                                                    40 Lost and found: one way to deal
                                                       XJUINJTIBOEMFECBHHBHF
 44                                                 42 2VJDLlYIPXUPDPQFXJUIUIF
                                                       QSPCMFNPGEBNBHFEMVHHBHF

                                                    44 Airport technology trends for 2016

                                                    48 4BUJTGBDUJPOCBHUSBDLJOHBOE*"5"T3FTPMVUJPO

                                                    49 "O"NFSJDBOlSTUJOBJSQPSUXJOUFSTVTUBJOBCJMJUZ

                                                    50 3VTTJBPOWFSHFPGCJHDIBOHFT

                                                    51 AGS Directory

2 Airline Ground Services Winter 2016/Spring 2017                                           www.ags-airlinegroundservices.com
AGSAIRLINE GROUND SERVICES
WE TURN AROUND
YOUR BUSINESS

Swissport International Ltd.
Ground Handling, Cargo Services, Aircraft Maintenance,
Fueling, Executive Aviation, Aviation Security

WWW.SWISSPORT.COM
AGSAIRLINE GROUND SERVICES
INTERVIEW | ERIC BORN: SWISSPORT

                                                                                        SOIL
                                               A
Eric Born took up the                                         Swiss national, Born              I have a different leadership style
                                                              holds a BBA from the           but that’s not been an issue. Rather
post of CEO of global                                         University of Applied          than multiply filtered information, I
handler Swissport on 1                                        Science in Zurich and          prefer honest interaction and open dis-
August 2015. He talks to                                      an MBA from Simon              cussion so we can all see what’s really
                                                Business School at the University of         going on – the opportunities, where we
AGSBCPVUIJTlSTUZFBSJO                    Rochester NY. He came to Swissport           can improve or develop, the good, the
that role and how he sees                       from a background in retail, logistics       bad, what is needed… I encourage my
                                                and aviation services, including six         teams to have discussions and there is
UIFDPNQBOZnBOEUIF
                                                years as CEO at Wincanton and four           perhaps more emphasis on this now
JOEVTUSZnHPJOHGPSXBSE                        years at John Menzies plc as a non-          than there was prior to my time here.
                                                executive director.                          Our role here in management is to get
                                                                                             the company to perform well.
                                                Q. You’ve been in post as CEO of
                                                Swissport for just over a year now.          Q. Can you also give an overview
                                                What were the challenges involved            of how things were at Swissport
                                                  in adapting and settling in to             when you joined – the context in
                                                     your new role, and how did you          UFSNTPGlOBODJBMQFSGPSNBODF GPS
                                                       overcome them?                        instance?
                                                             A. There haven’t been that          A. Things were ok. They were in-
                                                          many challenges actually. I        teresting times in the sense that there
                                                           used the first few months         was interest from the current share-
                                                            to travel and meet with col-     holders (HNA Group) in purchas-
                                                            leagues and customers so         ing the company from PAI Partners
                                                            I could get a good insight       when I joined. I was still working for
                                                           into our strengths and de-        the old shareholder for the first seven
                                                           velopment areas. As far as        months, so there was no change, which
                                                            things to overcome are           gave me a great opportunity to learn
                                                            concerned, we have grown         the culture of the business. There are
                                                            relatively rapidly – and a lot   in fact multiple cultures by station or
                                                            of that has been through ac-     country, which is not surprising given
                                                            quisitions such as Servisair.    our merger and acquisition activity
                                                           When you have two compa-          that has got the company to where it
                                                         nies of this size, the change       is today. Now, we are working towards
                                                       is not perfectly digested every-      a common culture that values account-
                                                     where so we did have some op-           ability and where employees are en-
                                                    erational challenges in the begin-       couraged to step up and speak up.
                                                   ning but we have dealt with them              The business continues to perform
                                                 well since then.                            well. Our revenue development plans

                                                        I have a different leadership style but that’s not been an issue.
                                                                   3BUIFSUIBONVMUJQMZlMUFSFEJOGPSNBUJPO 
                                                                I prefer honest interaction and open discussion
                                                                                    Eric Born

4 Airline Ground Services Winter 2016/Spring 2017                                                     www.ags-airlinegroundservices.com
AGSAIRLINE GROUND SERVICES
INTERVIEW | ERIC BORN: SWISSPORT

are where we want them to be. Our          day but the future so we are building        nesses. People need to take account-
biggest cost is labour while there is      on our leading position. We are strong       ability and ownership at a local level,
also a push on price from the airlines.    in Europe, North America, Africa and         there has to be a behavioural change,
We have to optimise our productivity,      Latin America but the Middle East            while we (that is, the management)
follow best practices and ensure con-      and Asia offer significant room for          help them centrally and regionally.
sistent quality at each station.           our future geographic expansion. We              The key issues for the industry in-
                                           have plans in place for that. It’s part      clude service quality, training, health
Q. Have you made any changes as            of our focus – for instance, in China        and safety and the reliability of ground
CEO? How far have you managed              with HNA Group as our shareholder.           ops. Our industry should never cut
to take these changes up to now,           I envisage we will have operations up        corners here – that is non-negotiable.
and are you happy with how they’re         and running in China within the next             At the same time, there is pressure
going?                                     12 months.                                   on prices from the customer. How do
    A. Part of the changes has been to                                                  we optimise the cost/quality equation?
give people the opportunity to speak       Q. Do you think the ground handling          We have to be able to generate a return
up, listen and share their ideas. An-      industry as a whole needs to change          in order to invest in the business at a
other part is that after the transaction   in any way(s)? If so, why – and how          market-clearing price. A certain level
in February and the meeting with the       might this be achieved? What role            of quality is expected and you have to
new shareholders, there was a change       is Swissport taking to support this          deliver. You can do a certain amount
to the top management team so that         agenda?                                      for efficiency – but it has to be within
we are a single company with a single           A. Safety is a key focus; training      these non-negotiable cornerstones.
team. Three people left, a new CFO         programmes and tools must be pro-            From what I’ve seen while travel-
joined and the role of COO was cre-        vided. Equally, aircraft damage, near        ling, as an industry, we should be very
ated – rather than having three EVPs       misses and so on are important. You          mindful of this.
at the head of three divisions, which      have to have clear targets for each sta-
created silos that were not cohesive.      tion and country. We have significantly      Q. What are your hopes for the
Everyone on the team is aligned with       beefed up our support for health and         future?
our key priorities.                        safety and quality because we want to            A. I will be further developing our
                                           continue to reduce accident rates and        leadership position, taking us to the
Q. What are your plans for taking          not damage equipment. As an indus-           next level of performance and corpo-
the company forward over the               try, we all need to do more. As the larg-    rate maturity. I’m incredibly pleased
coming years?                              est player, Swissport has a responsibil-     at the amount of commitment, at all
   A. The overall aim is to further        ity to lead that initiative.                 levels of the business, to go the extra
develop the organisation, leveraging            You have to ask how well is the first   mile on a day-to-day basis in a busi-
on our operational practices across        line trained? Do they immediately cor-       ness that, depending on geography,
the globe. When you buy from Swiss-        rect their behaviour? It is a day-to-day     can be a very tough job. I’ve been ex-
port, you get Swissport whether you’re     business objective, and a responsibil-       tremely positively surprised. This is a
in Africa, the Middle East, America        ity, to operate safely. Governments and      great platform to work with – it’s very
or Europe. There is consistency and        other authorities can help but it has        fertile soil if you want to drive plans to
quality. We are managing not just to-      to start at the level of individual busi-    further improve and expand.

www.ags-airlinegroundservices.com                                                   Winter 2016/Spring 2017 Airline Ground Services 5
AGSAIRLINE GROUND SERVICES
FORECAST | LOOKING AHEAD

Anthony Harrington looks at some of the latest developments in the ground handling sector
and where they might lead

T
             he ground handling sector                                                          Markets. This represents a forecast
             had no choice other than to                                                        compound annual growth rate (CAGR)
             come into being as a huge-                                                         of around 7.3% for the next 10 years.
             ly fragmented accumula-                                                            At that level of growth, funding for a
             tion of isolated businesses,                                                       general and potentially long-running
each springing up to handle the local                                                           consolidation of the sector, with a
requirements of one or two local air-                                                           number of mid-size and large players
ports. Many either started out as a part                                                        running ‘buy-and-build’ strategies, is
of a national airline, or quickly forged                                                        virtually guaranteed.
long-lasting agreements at a particu-
lar airport with a national airline or a                                                        LEADING THE CHARGE
handful of foreign airlines.                                                                    The history of all the larger ground
    Sometimes, when a carrier opened                                                            handling operators shows much the
up new routes at a new airport they                                                             same pattern. Dubai-headquartered
would (and still do) take their own in-                                                         dnata, which started life back in 1959
house or their favourite outsourcing                                                            as a team of five to provide ground
                                                    Gary Chapman, dnata president
baggage and cargo handler with them.                                                            handling services to the then new Dubai
However, for a couple of decades, as air                                                        International Airport, has been at the
travel developed and passenger num-             cash generative businesses that re-             forefront of international acquisitions.
bers mushroomed, new ground han-                quire significant funding both for ac-              Time and again, the purchase of es-
dling operations found it very difficult        quisitions and for capital equipment.           tablished ground handling companies
to break through established monopo-            At a time of low to negative returns            in new regions has helped dnata to ac-
lies to offer competitive services.             for cash, investing in ground handling          celerate its growth. The firm’s acquisi-
    Even today, in a number of air-             companies is essentially a bet on the           tions of ground handling operations
ports, the monopoly provider is still en-       onwards and upwards march of com-               at London Heathrow and Manchester
trenched, but there is no doubt that the        mercial air traffic.                            Airports in 2009 are an obvious case
sector is undergoing a radical change               Taken in its totality the global            in point.
that is steadily transforming the land-         ground handling business is expected                Earlier this year, dnata reportedly
scape. Established suppliers from out-          to be worth around US$7.4 billion an-           purchased US ground handling spe-
side a region are increasingly seeking          nually by 2025, according to the lat-           cialist, Ground Services International,
to outbid incumbents, offering airlines         est research report from Research and           which has operations in more than 20
better pricing and promising better
quality services. Big ground handling               SUSTAINING GROWTH
companies are getting bigger. Mid-sized
                                                    Dave Sheddon, head of communications at Menzies Aviation, feels that re-
companies are getting squeezed and
                                                    sourcing is the biggest challenge at major airports. “Whether it’s getting the
smaller single-airport organisations are
                                                    right people and keeping them, or optimising the way we deploy our teams and
under incredible cost pressure.
                                                    equipment, it remains an area on which we must always focus. Beyond that,
    The reason for the ‘big squeeze’ is
                                                    the typically competitive nature of the handling environment at large stations
simple economics. Ground handling
                                                    is a big pressure, as is the complexity of managing an operation with so many
today is an increasingly capital inten-
                                                    moving parts.”
sive business. Modern ground han-
dling equipment is expensive and ser-                 Sheddon says ground handling is always equally demanding both in terms of
vice providers have little choice other             the capital investment in equipment that it requires, and the human resources
than to automate every possible pro-                UIBU OFFE UP CF EFQMPZFE h1VU TJNQMZ  DPNQBOJFT OFFE B TVGlDJFOU CBTF PG
cess in order to hold down costs. Air-              capital on which to build. Without such a base, there’s a danger that a growing
lines are themselves trading on wafer               IBOEMFSNJHIUlOEJUTFMGTQSFBEUPPUIJOXIFODIBMMFOHFTBSJTFUIFHPPEUJNFT
thin margins and are constantly pres-               are easy to work through, but it’s tough to weather the harder times if a busi-
suring their suppliers to do more for               ness is overstretched.”
less, more efficiently.                               .FO[JFT GPSJUTQBSU JTDPOlEFOUPGJUTDPOUJOVFETVDDFTTBOESBQJEGVUVSF
    No surprise then that we are see-               growth, having announced its intention to acquire ASIG earlier this year.
ing one acquisition after another. The                As to whether the market is consolidating, Sheddon believes that “the dy-
stakes are reasonably high, given the               namics of the market are moving things in that direction. There have been a
asset base and staffing levels that many            number of major acquisitions in recent years, signalling a process of increasing
ground handling companies have built                consolidation, and we’ve contributed to that trend in announcing our proposed
up. However, funders rather like the                acquisition of ASIG.”
sector since it is comprised of solid,

6 Airline Ground Services Winter 2016/Spring 2017                                                          www.ags-airlinegroundservices.com
AGSAIRLINE GROUND SERVICES
FORECAST | LOOKING AHEAD

airports across the USA. This was dna-                Since then a series of acquisitions      STRATEGIES
ta’s first US acquisition and gives it a          around the world, from Ireland to Swe-       Despite the success stories, there is no
significant presence in the US market.            den, as well as more in the US, have         easy way for a ground handling company
    Moreover, it seems that a second              added to the Menzies portfolio. The          that begins life in a single location to
US acquisition is already on the cards.           latest move is the proposed acquisition      transform itself into a global player.
dnata president Gary Chapman was                  of ASIG, an aviation services and fuel       Çelebi started out back in 1958 as the
recently quoted in Gulf News say-                 services provider, with a useful ground      first privately owned ground handling
ing that dnata is in discussions with a           handling operation as well.                  company in Turkey. It took the company
small Canadian cargo handling opera-                  The deal for the Orlando, Flori-         just shy of 50 years to take its first step
tor. The company is said to have a war            da-headquartered company is said             on the road to becoming an international
chest of some AED3.5 billion (nearly              to be worth $202 million. When it            player, when it commenced ground
US$1 billion) for further acquisitions.           goes through it will give Menzies an         handling operations at Budapest
Chapman reckons that the company is               added presence in 88 locations across        Airport. Since then progress has been
well positioned to expand its presence            seven countries and will double the          steady rather than spectacular. In 2009
in the States through further takeovers           size of the company’s North Ameri-           it began operating in Mumbai, India,
and he signalled an interest in acquir-           can operations. One of the huge ben-         adding Delhi a year later. In 2011 it
ing part or all of two other US airport           efits that deals of this scale bring to      began providing services in Frankfurt.
service companies.                                the acquiring company is that they               The company is building up con-
    Like dnata, Menzies is another sup-           greatly enhance the relationship with        tract wins with major carriers on the
plier leading the growth-through-ac-              key airline customers by making more         ground handling side as well as pro-
quisition charge. The group’s aviation            services available in more locations         viding cargo services. Çelebi’s Delhi
business, comprising a range of ser-              around the world.                            operation, for example, began provid-
vices including cargo and ground han-                 Dr Dermot Smurfit, chairman of           ing ramp handling services to Cathay
dling, got off to a flying start in 2000,         Menzies called the deal “transforma-         Pacific Cargo from 1 February 2016.
when it bought the global ground                  tional”, adding: “It will create one of      It now has more than 300 customers
handling operations of the US-based               the largest aviation services businesses     around the world and is active in 30
Ogden Aviation Services. At a stroke              in the world and will strengthen Men-        airports in Turkey, one in Hungary,
the $118 million acquisition doubled              zies Aviation’s service offering at major    one in Austria and two in India.
Menzies’ aviation support business                international gateways such as London            Swissport International began life
and announced the group’s arrival as a            Heathrow, San Francisco, Denver and          as Swissair Ground Services, when it
major ground handling player.                     Los Angeles.”                                was simply the ground handling arm

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www.ags-airlinegroundservices.com                                                          Winter 2016/Spring 2017 Airline Ground Services 7
AGSAIRLINE GROUND SERVICES
FORECAST | LOOKING AHEAD

Æ
 CHALLENGES                                                                                   contract for low-cost carrier Scoot, a
                                                                                              subsidiary of Singapore Airlines, at
 Stewart Sinclair, CEO, Bangkok Fuel Services, gives his perspective on the
                                                                                              King Abdulaziz International.
 pressures facing a ground handling operation in a busy airport
                                                                                                  There are clear overlaps between
 “The major pressures … frequently stem from the airport operating over its                   cargo handling and ground services,
 original design capacity. This creates infrastructure-related issues such as lim-            not least because airlines like Delta
 ited check-in counters at peak periods, immigration congestion, overloaded                   carry substantial cargo loads on pas-
 baggage systems requiring transfer bags to be handled in a separate facility,                senger flights. So the larger ground
 lack of contact gates at peak periods, especially A380-capable gates, runways,               handling companies also tend to have
 taxiways and some apron areas requiring repair due to heavy usage.                           large cargo handling arms. Worldwide
   “Other challenges revolve around staff retention and suitable language                     Flight Services (WFS), the world’s
 skills. In our case, all of these infrastructure issues are being addressed by the           leading cargo handler, also has one of
 airport and other authorities. However, the growth at the airport is such that it            the most extensive global ground han-
 continually outpaces the infrastructure upgrades.                                            dling operations. In March this year
   “Ground handling is equally testing both in terms of the investment it re-                 WFS became even bigger when it ac-
 quires in capital equipment and in human resources.                                          quired Consolidated Aviation Services
                                                                                              (CAS), the largest cargo handler in
   “Expanding out from a local base is very challenging, and most local ground
                                                                                              North America.
 handling companies never make the transition to becoming an international
                                                                                                  Once again, the deal was basically
 operator with multiple sites, unless they are able to make acquisitions or are
                                                                                              an exchange between two PE houses.
 themselves acquired by an international brand. BFS is fortunate in that we are
                                                                                              Platinum Equity acquired WFS in
 part of the WFS Group, so we have access to the global network of WFS oper-
                                                                                              2015, and CAS was part of the portfo-
              ating at over 145 locations worldwide. As a special purpose com-
                                                                                              lio of investment firm ICV Partners,
                pany BFS is limited to operating at BKK. However, BFS has an
                                                                                              which specialises in middle market
                 investment in BFS Cargo DMK, which provides cargo handling
                                                                                              companies. CAS has operations in 45
                  services at DMK airport. All expansion outside Thailand is un-
                                                                                              North American and South American
                  dertaken by WFS.
                                                                                              airports.
                     “It is worth noting that for widebody aircraft there is really               WFS provides an example of yet
                     no difference between the requirements of cargo handling                 another expansion strategy avail-
                       and passenger baggage handling, as the vast majority of                able to ground handlers as they seek
                       the cargo and baggage is loaded in containers and loaded               to benefit from consolidation in the
                        BOE PGmPBEFE VTJOH IFBWZ MPBEJOH FRVJQNFOU 5IJT CFJOH       sector: its subsidiary Bangkok Flight
                        TP  B GFX NPSF QBMMFUT PS DPOUBJOFST UP MPBEPGmPBE EPFT   Services (BFS) is a joint venture with
                         not take up much time.                                               Bangkok Airways, Thailand’s second-
                           “Curiously the bigger challenge is with narrowbody air-            largest regional carrier. BFS is based
                         craft – and especially low-cost carriers who carry cargo.            at Bangkok Suvarnabhumi Airport.
                         8IJMTUUIFXFJHIUNBZOPUMPPLUPCFTJHOJlDBOU UIFOVN           Its latest carrier win was in Febru-
                          CFSPGQJFDFTUIBUOFFEUPCFMPBEFEBOEPGmPBEFEDBO             ary this year when it provided ground
                          CFTJHOJlDBOU5IFDIBMMFOHFJTGVSUIFSDPNQPVOEFECZ             handling, passenger and cargo servic-
                           this being a labour-intensive process, with relatively lit-        es for the inaugural flight of Myanmar
                           tle automation, and a requirement to complete the task             National Airlines.
                            in minimal ground times.”                                             Like many carriers, SAS, the
                                                                                              Scandanavian carrier, had a long
                                                                                              tradition of using its own ground
of Swissair, formerly Switzerland’s na-         with more than 270 locations in 48            handling arm. However, it has had
tional airline until, after various mis-        countries, and an annual turnover in          a steady programme of outsourc-
adventures, the airline became part             excess of three billion Swiss francs.         ing these services in recent years at
of Lufthansa. The private equity (PE)               Not surprisingly, with that kind          various airports around the world. In
house Candover acquired Swissport,              of reach, announcements from Swiss-           May this year, SAS signed a letter of
then a wholly owned subsidiary of               port of new contract wins with airlines       intent with Aviator Airport Alliance
Swissair in 2002 and sold it on to the          and new ground handling agreements            Europe (Aviator) whereby it agreed
Spanish infrastructure firm Ferrovial           that extend its presence globally, are        to outsource ground handling at
in 2006. It was acquired by its pre-            a frequent occurrence. The latest an-         Gothenburg and Malmö.
sent owners, the French PE firm PAI             nouncements of this sort at the time              However, SAS decided to continue
Partners in 2010 for €654 million – a           of writing were an agreement with             to do its own ground handling at the
price that already signalled the extent         COBALT, the new Cypriot national              main Scandinavian airports. Accord-
to which Swissport had become a pow-            carrier that takes Swissport into 13          ing to SAS, outsourcing has saved the
erhouse in the international ground             airports where COBALT has a pres-             group some SEK 300 million ($33.3
handling game.                                  ence, and an agreement with Jazeera           million) over the past two years. But
    Swissport has become a highly               Airways KSC to provide ground and             the carrier argues that a major digiti-
successful acquisition management               air cargo services at King Abdulaziz          sation programme currently underway
operation, with one transaction after           International airport in Jeddah, and          will enable further streamlining and
another turning cash positive for the           King Khaled International in Riyadh.          customer improvements to be made
company. It is now, with some justi-                Jazeera Airways therefore becomes         in ground handling, and that it is best
fication, able to claim the title of the        Swissport’s launch customer in the            placed to do this at the major Scandi-
world’s largest ground handing group,           Saudi capital. It has also picked up the      navian airports.

8 Airline Ground Services Winter 2016/Spring 2017                                                      www.ags-airlinegroundservices.com
GROUND HANDLING | CHALLENGES

As 2016 draws to a close, and with the discussions carried out at this year’s IATA Ground
Handling Conference in mind, AGS gathers perspectives on four major challenges facing the
ground handling industry

S
          afety is a vital pillar of        is working towards better safety per-            “Working day and night on the
          the GH industry. Which            formance is dnata’s One Safety pro-          ramp in all weather conditions is
          initiatives ought to be           gramme, which includes specific train-       challenging for man and machine so
          pursued in order to improve       ing of front-line supervisors so that        well-maintained equipment including
safety standards, and why? What             they recognise how crucial their roles       anti-collision and other safety meas-
makes these things so important?            are in managing safe turnarounds.            ures makes handling safer. And here
    The general consensus on this topic     This includes both technical train-          comes the dilemma. As a carrier, we
is that “Safety is the prime considera-     ing on risk identification as well as        of course want our GHA to use only
tion and the driver for everything that     cultural awareness and coaching, di-         GSE with the latest available technol-
happens within the industry,” as Paul       visional senior vice president Stewart       ogy; as GHA, however, upgrading all
Craig, managing director at Aviance         Angus outlines. The programme also           GSE to the latest available technology
Ghana, puts it. “When we push for           involves specific training for all ramp      is not always feasible and also costly.
faster turnarounds and examine OTP          staff on hazard identification, safety       The question here is if new technology
we must never trade safety against          awareness and cultural training. This        shouldn’t without fail be integrated
performance; however, working safely        includes training on how to perform          into new equipment by the providers?
takes no longer than cutting corners.       peer observations, so that all staff are     This would help to challenge all GSE
The golden rule of aviation is to follow    fully cognizant of the role they play in     providers to further invest in research
procedures. The human factor com-           safe turnarounds.                            and provide best possible solutions to
bined with SMS training has to be at                                                     the industry,” he suggests.
the heart of the operation. We should                                                        As for the Ground Damage Data-
not place one above the other as it is a                                                 base, which supports the reporting cul-
combination of cultures that makes it                                                    ture already alluded to, Jossart notes:
tick,” he sums up.                                                                       “By reporting every incident and thus
    Several initiatives take prime im-                                                   making it available to the experts, the
portance in the drive for improved                                                       experienced mishap will help to define
safety in ground handling. According                                                     adequate and standardised processes
to Forsyth Black, president and man-                                                     to make ramp handling all around the
aging director of Menzies Aviation,                                                      world safer. We should not hide be-
“The first is training. Ensuring that                                                    hind confidentiality or other protec-
our employees stick to official proce-                                                   tive arguments to not report aircraft
dures will make the greatest impact on                                                   damages as only by providing this in-
our safety performance. Our operating        Paul Craig, managing director               formation will solutions be elaborated.
procedures are designed explicitly to        at Aviance Ghana                            We are currently preparing our ISAGO
avoid safety risks, and they’re written                                                  implementation and are confident that
by experts on the subject; our job is to        Finally, One Safety covers “proac-       it will lead to a more standardised,
continually reinforce how important it      tive communications with our airline         documented and an even safer ramp
is that they are followed to the letter.”   customers to ensure a common focus           handling operation,” he adds.
    The second major point is estab-        on the safety of people, cargo and air-          Protege managing director Mário
lishing a reporting culture. “Hand          craft and that this is never compro-         Baptista suggests that on top of train-
in hand with a determination to do          mised for a speedy turnaround. There         ing, an efficient quality control pro-
things right, must go a willingness to      is no single solution when it comes          gramme, with a solid corrective and
report when they go wrong,” Black ex-       to ground safety. Every one of our           preventive action plan, forms an im-
plains. “Only by completing this feed-      initiatives is designed to support the       portant part of safety management – as
back loop can we maintain a clear pic-      achievement of a ‘One Safety’ mindset        does an internal safety committee that
ture of where our greatest safety risks     and putting this into action in every-       can discuss possible improvements
– and hence our most pressing training      thing that we do. Total safety is the        and bring these to fruition. These three
needs – are, and act accordingly.           product of all our initiatives working       initiatives are interdependent, but he
    “There’s a theme here, because both     together,” he points out.                    feels that having in place a good qual-
of these are behaviours. We’re a people         At LuxairCargo, executive vice pres-     ity control programme will automati-
business and behaviour matters more         ident Laurent Jossart adds that besides      cally bring about the other two recom-
than anything else: the right ones keep     training, GSE with the latest technol-       mendations through the prevention
us safe,” he adds.                          ogy is also of vital importance, as is the   and corrective action plans.
    One example of how the industry         IATA Ground Damage Database.                     Baptista also comments that man-

www.ags-airlinegroundservices.com                                                    Winter 2016/Spring 2017 Airline Ground Services 9
GROUND HANDLING | CHALLENGES

Æ
agement must participate in safety                                                              ference in a global market and we are
initiatives to help encourage staff to                                                          constantly working on new and inno-
behave in accordance with safety pro-                                                           vative ways to enhance our operations
tocols. Kürsad Koçak, general man-                                                              for our customers.”
ager at Havas Ground Handling Co,                                                                   Elsewhere, “I make no secret of the
is in strong agreement with this point.                                                         fact that I believe transitioning from a
“Safety commitment requires a strong                                                            paper-based to a digital environment
leadership, and without this manage-                                                            is the right way to go – but crucially,
ment effect, it is not possible to miti-                                                        it has to be right for our customers,”
gate the risk factors to required levels,”                                                      says Black. “We’re already incorporat-
he declares.                                                                                    ing digital processes, and it’s something
    Following a similar line of thought                                                         we’ll continue to do; however, ensuring
to Baptista, Norbert Bielderman, man-                                                           that our customers are bought in to –
aging director and CEO at Nigerian                   Protege’s Mario Baptista                   and will see benefit from – each switch
Aviation Handling Company (Nahco                                                                will be the most important factor in de-
Aviance), emphasises the importance                    tified training facility where we        termining the rate of our progress.”
of a safety management system, “gen-                   perform all sort of training but all         In the passenger business, carriers
erally described as a systematic ap-                   training have one thing in com-          began providing the possibility to indi-
proach to managing safety, including                   mon: safety first!                       vidual customers to compare rates and
the necessary organisational struc-             •      State-of-the-art and well-main-          book a ticket for themselves through
tures, accountabilities, policies and                  tained equipment. At SGS, we year-       the Internet. In order to be able to
procedures” as essential for operations                ly invest millions in purchasing and     compete, all carriers had to adapt and
in the sector. It is a process that should             maintenance of equipment.                propose an on-line booking solution,
be a significant part of the operations         •      An open culture of communication         which led to the development of a pa-
system of any ground handler as a com-                 and feedback regarding any possi-        perless process from booking through
prehensive and effective process for                   ble incidents, unsuitable routines       payment to embarking.
managing safety risks. A safety man-                   or risks. A communication culture            In the cargo business, on the other
agement system helps ground han-                       of openness and rewarding sugges-        hand, the booking and consequently
dlers to reduce safety risks to the bar-               tions on how to eliminate potential      all the paperwork including Customs
est minimum. Beyond the regulatory                     risks is key to reduce potential risks   formalities are mainly provided by for-
aspect, ground handlers should adopt                   and further improve training re-         warders or cargo agents, all of whom
and implement a safety management                      sulting in improved safety.”             use different IT tools and systems, Jos-
system from a legal and best practice                                                           sart points out.
operational perspective,” alongside             It has been said that the large-scale               “As a consequence, the process
participating in IATA’s ISAGO and               buy-in of paperless processes is                and especially the data transfer, even
Ground Damage Database initiatives.             lOBMMZHBJOJOHNPNFOUVNBTUIF                if already standardised, remains more
    “These three initiatives are im-            ‘millennials’ enter the workforce               complex. As a GHA we see it every day
portant because they provide oppor-             in greater numbers. Are efforts to              with the amounts of AWB data capture
tunities to review existing safety risk         encourage or even force change all              we need to arrange even though a hard
processes by conducting in-depth root           in vain? Can the industry afford                copy of the AWB is available and the
cause analysis into incidents and ac-           to wait longer for the change to                information on those AWB has been
cidents and providing functional solu-          take hold naturally? And why has                keyed into an IT system at the start
tions and procedures, thereby creating          cargo been so much slower than                  of the forwarding process. There is no
learning curves for safety risk improve-        passenger to get the switch to                  added value in re-arranging the full
ment,” he sums up. “I would advise that         digital processes started?                      AWB data capture and it is in fact diffi-
the most important of the three pro-                As an industry, ground handlers             cult to understand why progress takes
cesses is the ISAGO audit programme             have historically been slow to embrace          so long. Expensive manpower should
as it encompasses the SMS review                new technology and automation, An-              be used for more valued tasks and du-
and the GDDB reporting processes.               gus agrees. However: “dnata sees tech-          plicate of works prevented. Unfortu-
However, ground handlers that do not            nological innovation as a point of dif-         nately as a GHA, you do not have any
subscribed to the ISAGO programme                                                               possibility to enforce the data transfer
can implement an independent safety                                                             – with the exception that you can en-
management system and still achieve                                                             courage carriers to avoid the accept-
significant safety improvement.”                                                                ance of shipments without available
    In conclusion, summing up the                                                               electronic data by making the service
general feeling in response to this ques-                                                       payable.”
tion, Saudi Ground Services general                                                                 Koçak echoes these views, pointing
manager marketing and sales Ahmed                                                               out that when it comes to air cargo op-
Jannah considers: “Safety is, no doubt,                                                         erations, there are numerous links in
the outstanding most important aspect                                                           the supply chain, Integrating any digi-
of our service. It’s an aspect never to                                                         tal system into this complicated struc-
be compromised. To safeguard a very                                                             ture requires the systems of all parties
high level of safety I believe the follow-                                                      involved to be synchronised, making it
ing three aspects are key parts:                                                                less simple than digitising passenger
• Staff training and follow-up. At                   Ahmed Jannah of SGS                        operations. In Turkey, he says, IATA’s
    SGS, we have our own IATA-cer-                                                              e-AWB and e-Freight initiatives are

10 Airline Ground Services Winter 2016/Spring 2017                                                       www.ags-airlinegroundservices.com
Your gateway to local experts

By uniting local experts in an innovative
multi-station network, we provide custo-
mer airlines with streamlined access to
high-quality, customized ground hand-
ling services. www.ground.net
GROUND HANDLING | CHALLENGES

Æ
helping to solve the problem.                        Indeed: “Paperless processing is       and although the political situation is
    In general: “Since this is a digital        the future in aviation operations and       still foggy the way to overcome barri-
age, paperless technology has become            it is fantastic to see the momentum in      ers is always to invest in quality and
an important necessity in our daily             buy-in from across the board,” remarks      safety.”
operations. As of 2013, we have been            Bielderman enthusiastically. “The ad-            Baptista reckons Africa offers the
using electronic service forms and              vantages of implementing paperless          most challenges – but also, perhaps,
invoices. Implementing this paper-              processing across ground operations         more opportunities than other regions.
less system within our organisation             cannot be over-emphasised. Nahco            Handlers in Africa are “severely affect-
allowed us to achieve huge savings              Aviance recently upgraded its cargo         ed” by operational challenges such as
of paper while we handle thousands              management software to enable it run        inadequate infrastructure – many Afri-
of flights a week. Using computer-              better and also integrate effectively       can airports are obsolete, Bielderman
ised systems would also contribute              into the enterprise software programs       says, and this is often the reason why
to the operational productivity while           to facilitate -cargo operations.            ground handlers cannot efficiently
                                                     “I believe strongly that the efforts   meet service level agreements.
                                                to encourage paperless processing                “Handlers in the region are also
                                                are not in vain as the improvement in       plagued by the high cost of operations,
                                                numbers of organisations subscribing        high charges from regulatory authori-
                                                to the system is increasing by the day.     ties and government agencies who
                                                Airway bills are mostly paperless now       manage the airports across the conti-
                                                and major airliners and ground han-         nent and skyrocketing GSE costs due
                                                dlers have been able to integrate their     to unstable currencies and economic
                                                software to seamlessly process cargo.       challenges across African countries.”
                                                This will only improve as millennials            On the flip side, Bielderman com-
                                                who are technology savvy begin to join      ments that European sector has per-
                                                the aviation workforce.”                    haps seen greater challenges to safety
                                                     Bielderman feels that the crux of      and security with regards to the recent
 Kursad Koçak, general manager at               non-implementation of paperless pro-        terrorist attacks at airports in Turkey
 Havas Ground Handling Co
                                                cessing in cargo operations has been        and Belgium.
                                                down to “divergent interests and fear            Whatever, the efforts to overcome
increased quality and punctuality of            of the unknown”. To a large extent, ma-     challenges for the continued growth
work has become highly important in             jor stakeholders already have the re-       and stability of the aviation industry
the ground handling business.                   quired systems in place, but some are       must include all stakeholders. Govern-
    “For example, Havas uses simulator          concerned about losing control and          ments ought to take responsibility for
systems during pushback training for            independence over aspects of the cargo      increased safety and security of the fly-
its pushback operator candidates and            processes. Corruption also plays a role,    ing public in Europe, while the African
takes advantage of technology in this           he believes, especially with regards to     industry needs all industry stakehold-
area, which results in minimising the           some of the state agencies that form a      ers to make concerted efforts at re-
risk factors and enabling quick adap-           critical part of the cargo handling pro-    vamping the industry, improving air-
tation of the personnel. Both of these          cess and who have formed the greatest       port infrastructure and implementing
efforts play major roles for our envi-          roadblock to total e-Freight opera-         palliative measures against currency
ronmental policy by saving paper in             tions, in his view.                         fluctuations, he urges.
our daily operations and burning less                Furthermore, Craig notes that not           Still, as Baptista observed, there
fuel during the training.”                      all parts of the world are at the same      are opportunities in Africa. Bielder-
    Baptista, meanwhile, feels that             stage of development when it comes          man goes on: “The African market has
technology is there to help, but that           to technology. For instance: “Sub-Sa-       been growing significantly in the past
change cannot be forced because                 haran Africa is an emerging continent       years and this has been an encouraging
“in general people are afraid of any            but so many modern-day processes            factor for airliners and ground han-
change”. Therefore, smooth transitions          rely entirely on Internet-driven com-       dlers. Passenger numbers rose at our
are very important – as is staff buy-in.        munication – which we do not have. In       main hub in Lagos from 5,654,122 in
    Plus: “Costs for sure are a barrier         my opinion most ‘paperless’ processes       2009 to 7,561, 507 in 2014, a difference
for implementing new technologies               end with a paper trail.”
and nowadays even more due to the
current global economic situation. So,          Which region of the world poses
in my opinion cargo, due to safety con-         the greatest challenges for the GH
cerns and low return (maybe because             industry, and why? How can these
cargo is not a priority within the com-         challenges be overcome – is it
mercial airlines), is behind in the tech-       down to handlers, their customers,
nological race.”                                governments...? What are the
    While acknowledging that cost is a          opportunities there that make it
necessary consideration, Jannah feels           worthwhile persevering to develop a
that modern technology is “an obvi-             presence in this region?
ous opportunity that we must avail                  “If I can point out the difficulties
ourselves of. Continuous development            in Brazil, they are very related to regu-
and improvement is a normal part of             lation and economics,” says Baptista.
our work at SGS. We must all be most            “The Brazilian market has changed            Laurent Jossart of LuxairCargo
open to changes!”                               considerably in these last two years

12 Airline Ground Services Winter 2016/Spring 2017                                                    www.ags-airlinegroundservices.com
GROUND HANDLING | CHALLENGES

of about 25%. The same was the case         gion in question, because finding ways       signed the resolution denouncing the
at the busiest airports on the continent    over today’s hurdles is what will deliver    illegal trade in wildlife and wildlife
(OR Tambo, Johannesburg; Cairo In-          tomorrow’s successes.”                       products,” he adds.
ternational Airport; and Cape Town                                                           Baptista sees ground handlers as
International), which recorded growth       5IFSFJTKVTUJlBCMFDPODFSOPWFSUIF       having an important role in preventing
figures of 8.84%, 2.1% and 11.8 % re-       scale of the illegal wildlife trade.         illegal trade in wildlife – but feels that
spectively between 2009 and 2014.”          What can – and should – the GH               all players must meet to discuss and
    As far as Sub-Saharan Africa goes,      industry be doing to help put a stop         define how to stop it happening in the
Craig highlights problems relating to       to this? How can the industry’s              aviation environment.
bureaucracy, infrastructure, education      suppliers, customers and partners                Koçak is clear on how the indus-
and culture. Overcoming these chal-         help?                                        try should act. “The first step would
lenges takes time so handlers have to           “This is a subject close to my heart,”   be sustaining an operation that is in
work within local limitations while         says Angus. “dnata4good is an inter-         compliance with the global standards
steadily driving change. “Everything is     nal engagement programme which al-           of animal transportation regulated
possible but the route to achievement       lows our staff to raise money for good       under IATA Live Animals Regula-
differs from country to country,” he        causes with their donations matched          tions to avoid illegal wildlife trade.
says, stressing that “There is not and                                                   These regulations must be followed
should not be a global answer.”                                                          by industry suppliers and customers
    There are some regions where air-                                                    as well as by other involving parties.
lines have suffered disproportionately                                                   It should not be possible to accept liv-
from poor service levels, delays and                                                     ing animals that do not have a shipper
aircraft damage. These seem to in-                                                       declaration form in particular – and
clude USA, Canada and Latin America                                                      checking documents like CITES (the
according to Angus – who reckons that                                                    Convention on International Trade
challenges are overcome and improve-                                                     in Endangered Species of Wild Fauna
ments made in those areas where there                                                    and Flora) can also help handlers to
has been a commitment on the part of                                                     understand the transportation re-
all stakeholders to make a concerted                                                     strictions on animals and avoid any
effort to change the status quo.                                                         possible illegal trade risk.”
    In Koçak’s opinion: “Liberalisa-                                                         IATA Live Animal training has
tion and growth in ground handling           dnata’s Stewart Angus                       been provided to Havas Cargo staff to
markets continue particularly in Latin                                                   make sure that they are familiar with
America, Africa, the Middle East, East-     by the company up to AED1 million            the requirements of live animal ac-
ern Europe, Russia and Asian markets.       (US$272,279) per year. Through this          ceptance. Koçak is confident that fo-
On the other hand, each market has its      scheme, we have already established          cusing on industry standards should
own challenges like different local pro-    a rehabilitation centre for orphaned         be sufficient to avoid attempts at trad-
cedures and regulations, unions, infra-     rhinos along with a mobile medical           ing illegally in wildlife.
structure and working culture. These        services unit in South Africa as well            However there are obstacles. “What
elements must be carefully evaluated        as anti-poaching controls to help pre-       we have observed is that corruption
during the planning stage of an in-         serve this beautiful and rare animal. It     and compromise by some criminal gov-
vestment project. However, the strong       is a good feeling to know that our staff     ernment officials who are supposed to
growth in those markets and limited         are making a difference to the world.        be the first line of defence against il-
competition in some areas still make        We also work with many of our airline        legal wildlife trade is the reason why
those emerging markets attractive for       customers to prevent the air transpor-       the trade has continued,” Bielderman
ground handlers.                            tation of illegal wildlife.”                 remarks. “Ground handlers are not di-
    “We believe all stakeholders have to        dnata4good is just one example           rectly responsible for checking the con-
contribute to the solution of the prob-     of a proactive response to the illegal       tents of shipments and will only accept
lems in their areas. Like many other        wildlife trade. Black sees improve-          a shipment that has been certified as
foreign investors, ground handlers also     ments in cargo security as the most          OK by government officials. Govern-
seek a reliable and stable political en-    productive route, while Jannah states        ment agencies should conduct a com-
vironment and regulatory framework          simply: “The GH industry must always         prehensive risk analysis of each and
which support competition and service       follow applicable rules, laws and in-        every cargo shipment and fully under-
quality. These factors offer a strong po-   structions issued by different bodies.       stand the adverse effects of letting such
tential when combined with an emerg-        No exceptions!” Craig believes that          shipments escape their searchlight.”
ing aviation market. Eventually, all        governments should take the lead, but            Furthermore: “Government agen-
aviation industry stakeholders includ-      that “everyone is a stakeholder to drive     cies and NGOs focused on animal
ing authorities and air carriers benefit    change”.                                     rights can do a lot to create awareness
from a stable and reliable ground han-          Similarly: “Every GHA, same as           about the ills of illegal wild life trade
dling industry and therefore, all play-     the carriers and forwarders, should be       and also implement severe sanctions
ers should support it.”                     aware of and work hand in hand with          for those found erring. That said,
    Black’s view is that every region       the local authorities to prevent illegal     ground handlers can intensify moni-
has its own unique blend of challenges      wildlife trade,” Jossart affirms. “Trans-    toring efforts by double-checking at
and they are too nuanced to permit any      parency is key and as soon as you have       the screening points and exit points
sort of ranking. As for the second part     a doubt, you should proactively report       using advanced technology such as
of the question, he says: “It’s always      to the authorities and have the ship-        comprehensive RA3 protocols and
worth persevering, no matter the re-        ment checked. Luxair has recently            ETD technology.”

www.ags-airlinegroundservices.com                                                   Winter 2016/Spring 2017 Airline Ground Services 13
INTERVIEW | CRAIG SMYTH: WFS

One of the ‘big four’ handlers, WFS, appointed a new CEO just a few months ago – and he has
clear plans for the company’s growth in the years to come

C
            raig Smyth joined WFS in            couple of months into the role, how        routines of the future.
            August after more than              have things been going?                        There are no big surprises. WFS is
            two decades at John Men-                A. Today I think is eight weeks in     what you think it is: people that are
            zies, his most recent post          the post for me. I’ve been with Menzies    steeped in cargo. It’s a 40-year-old
            being CEO of Menzies                from the start and I’ve closely followed   business. Most people I’ve met have
Aviation (a role he assumed in 2004).           other businesses in the industry. WFS      been with the organisation for more
A qualified accountant, he previously           was always a business I had followed       than 20 years so slightly more history
served as the company’s CFO. AGS                closely and admired, and had certain       than somewhere like Menzies. They’re
spoke to him at The International Air           views on. Now, I’m inside the business     all very passionate about what they do
Cargo Association’s 28th Air Cargo              – in the guts of the business. I’ve been   – very passionate about cargo. They’re
Forum & Exhibition held in Paris dur-           splitting my time between induction,       all great people They’re ‘people people’
ing October, to find out how his new            learning, understanding and meet-          who are big into relationships both
role is panning out so far and how he           ing people as well as some of the basic    within the organisation and with cus-
sees the future.                                routines that have to be done in a big     tomers. They’re not ‘here today, gone
                                                organisation – so, meeting with share-     tomorrow’ with customers. Custom-
Q. You were appointed to the post               holders and bondholders, monthly           ers trust them implicitly over a long
of CEO of WFS in August. Just a                 reporting and setting up some of the       period of time. If things do go wrong,
                                                                                           there’s a lot of patience and goodwill to
                                                                                           sort out whatever the issues are.
                                                                                               Everybody has made me incredibly
                                                                                           welcome. I did say to somebody the
                                                                                           other day that WFS is like a league of
                                                                                           gentlemen. At Menzies, we came from
                                                                                           very humble beginnings with very
                                                                                           Celtic roots so we were sort of the small
                                                                                           guy hustling. I guess in the last five or
                                                                                           10 years or so the business came of age.
                                                                                           WFS is very graceful – that’s probably
                                                                                           the French heritage as well, plus the
                                                                                           type of people that have grown up in
                                                                                           that business. It’s a different culture –
                                                                                           a culture that I’m happy to belong to,
                                                                                           to grow and develop within their ex-
                                                                                           isting culture rather than change it to
                                                                                           something that would be alien to them.
                                                                                           That’s certainly not my intention.

14 Airline Ground Services Winter 2016/Spring 2017                                                  www.ags-airlinegroundservices.com
INTERVIEW | CRAIG SMYTH: WFS

Q. What particular skills and               for high-volume, low-cost and legacy        still learning the network and some
experience – whether from the               airlines, that is, narrow body airlines.    of it is a crossover with Menzies while
handling arena or elsewhere – are           So I know the cargo business pretty         some of it is new. It’s trying to work
you able to bring to your new               well but I think my skill is as an ex-      with local people from local cultures
position that you believe will take         accountant who is an administrator          and make them feel supported, be it
WFS forward?                                and who usually never had an original       with the tools or be it with the align-
     A. Well, the caveat is that I’m only   thought in his life! But you see the best   ment of goals and the spirit. This isn’t
eight weeks old. I think WFS has grown      that’s out there and you think, ‘That’s a   absolute, but you have an American
up rooted in France with acquisitions,      good idea, why don’t we do that some-       running America, a Brazilian run-
a bit of organic development and joint      where else?’ Or, ‘That’s a good process     ning Brazil, a French person running
ventures. As most handling businesses       or a good discipline or a good system.’     France – and then fuse that with the
have in common, it’s got great people,      It’s about trying to put people together    process and structure and products of
great safety and security, great financial   and borrow from different parts of the      a cargo and ground handling business.
performance and great customer rela-        organisation or other organisations,
tionships. It’s been incredibly success-    be they in this industry or other indus-    Q. How much involvement do you
ful in the main because it’s had really     tries that we could learn from.             think Platinum Equity is going to have
good people – and again, really good             That’s what I bring to the party:              in determining the future of
people in cargo and with cargo tools.       I’m an administrator of complex,                           WFS?
     I do believe in people having the      multinational businesses in avia-                                A. I had my sec-
right tools for the job so there’ll be      tion services where you really                                 ond op con, which is
an element of further investment in         are reliant on groups of people                                 like a board meet-
cargo, honing the cargo product. WFS        working as a team with com-                                     ing, last night and
is the biggest and the best cargo han-      mon goals.                                                       they’re very sup-
dler in the world and we want to make                                                                        portive. If you
sure that position is cemented for the      Q. Obviously WFS has                                             look at what they
future; there’s more support we can         EJGGFSFOUPGlDFTBSPVOEUIF                                     did, they invested
give to the people in the field when it     world. How do you bring the                                      a lot of money
comes to the cargo product – making         different cultures into play?                                   in WFS and then
sure we have the right chill stores, the    How do you manage that?
right pharma trucks, the right capabil-         A. I think it’s difficult to
ity to handle live animals or human         stipulate from a WFS point of
remains or secure products or pharma        view because I’m
so that we are a 21st-century business.
Some of that will take a small invest-
ment. The IT system is quite good but
there’s more technology we can har-
ness. There are slightly different ver-
sions of some of the cargo systems so
we’re looking at levelling up.                 WFS is the biggest and the best
     Cargospot is the main one that           cargo handler in the world and we
we use. There’s Hermes in one or two           want to make sure that position
places and there’s still ABS out there.          is cemented for the future
It could be that there’s a front end that               Craig Smyth
could sit on top and drill down, and
could give the KPIs and the customer
information, so we’re looking at that.
     WFS was run as a diverse geo-
graphical network with almost no cen-
tral functions, so at the moment I’m
building the central capability. Lots of
the business is operating very well and
has good processes and people, but
it’s not really coordinated and run as
a network. Without losing the entre-
preneurial spirit out there, I want to
give more central support so the WFS
brand gets taken to the next level and
you can say, ‘These are the 10 things
you always get with WFS,’ be it physi-
cal or intellectual property.
     I know the industry pretty well and
my roots were in cargo – starting off
with AMI with cargo forwarding, then
cargo trucking, then cargo handling.
Then ground handling was the big
success – finding the magic formula

www.ags-airlinegroundservices.com                                                  Winter 2016/Spring 2017 Airline Ground Services 15
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