2 HANDLING NEWS
Menzies’ expectations bang on track for 2012
Britain’s John Menzies has confirmed that the positive start to the second half of its financial year has continued and that it anticipated that full-year results would be in line with expectations. The company added that its aviation support services business was on track to report full-year underlying EBIT growth in line with expectations, this despite the fact that it has been being hit by adverse currency exchange rates. Like-for-like ground handling volumes
rose in all by 2.7% in the year to date although in line with many other operators, cargo volumes, fell by 7.3%. In absolute terms, volumes increased by 2.5%, however, reflecting the annualisation of contracts won in the previous year.
The company also said that the
restructuring of its struggling UK cargo business had been completed.
Collaboration to achieve further efficiencies in sector
With the entire aviation sector facing patchy air traffic growth in the short term, as well as significant financing challenges and a growing focus on emissions, the themes of efficiency and performance have become paramount at Europe’s airports. In 2008, European airport trade bodies ACI EUROPE and EUROCONTROL began a collaboration to increase operational efficiencies at European airports. At the seventh ACI AIRPORT EXCHANGE event, which was hosted by Amsterdam’s Schiphol airport, an announcement was made on the benefits achieved to date. Airport Collaborative Decision- Making was one item on the agenda: this facility allows for real time sharing of operational data and information between the stakeholders using an airport, thus creating common situational awareness, which in turn helps optimise interactions between airport operators, air traffic control, airlines on the ground and the recently established EU Network Manager. This results in improved use of available airport capacity. A-CDM is also essential to the work of SESAR. Airports where A-CDM is already fully implemented include Munich, Brussels, Paris Charles de Gaulle and Frankfurt, with Helsinki-Vantaa airport following. These airports collectively welcome over 150m passengers a year and their experience has recorded significant benefits for airlines and passengers.
In this context better punctuality has
GROUND HANDLING INTERNATIONAL FEBRUARY 2013
of fuel savings, around €20.8m has been recouped over a year. A further 25 airports are currently in
the process of implementing A-CDM either locally or fully.
SAS to divest - again
Scandinavian airline SAS is looking to sell its ground handling unit in a move that is aimed at restoring its profitability. The airline, which has been burdened with high costs and intense competition from rivals Norwegian Air and Ryanair, announced plans in November 2012 that would see it slash costs and sell some of its assets.
SAS said that its asset sales would bring in around SEK3bn (approximately US$450m) to help boost its balance sheet. At the time of the announcement, the airline gave no indication of what would actually be sold. Ground handling, which brought in
revenues of SEK1.3bn in 2011, was one unit that was widely expected to be sold, and a source with knowledge of the situation said that SAS had already contacted potential buyers. SAS has previously looked at selling its
ground handling arm: that was in 2008, but in the event, it decided to hold on to the facility. SAS has also previously said that it would look at selling more of its property portfolio. In fact, over the last 12 years SAS has sold assets to the tune of SEK100bn. Despite this, the carrier has not made a full year’s profit since 2007. A series of restructuring plans have seen it cut staff and sell some of its non-core operations: these have included its hotel business and its Jetpak logistics unit. It is known that pilots at its Norwegian unit (Wideroe) have expressed an interest in buying the Eurobonus frequent flier scheme, should it be put up for sale. Aside from this Denmark, which owns a 14.3% stake in SAS, has said that it is not discussing a cash injection for the carrier and that it will not do so until the Scandinavian airline has a viable business plan in place.
Following talks, SAS confirmed that it would be attempting to streamline its organisation in order to bring its costs down and increase its flexibility. To that end it will negotiate with external parties to take over its ground handling operations in Scandinavia. The exact time for this was not specified, however. Furthermore, SAS is to centralise and move its administration to Sweden
been noted and there has been on average a three minute reduction in aircraft taxi-ing time. Reduced emissions have also come into focus, with more than 120,000 tonnes of CO2
saved on an annual basis. In terms
whilst Norway and Denmark will retain their essential local functions. SAS is also looking to make a total of 800 administrative employees redundant in Norway, Denmark and Sweden and will significantly reduce the number of executive positions. The outsourcing, streamlining and sales contained in this plan will result in the number of SAS employees falling from around 15,000 to 9,000. It also appears that many SAS employees will be given new employment terms and conditions. Pension schemes will also be changing, with every employee having a defined contribution plan in the future.
Indian government looks anew at aviation policy
When your business model is losing around US$2bn annually, it’s arguably time to refocus on your product. The above figure relates to India’s losses within the aviation sector. Despite the government’s attempts to open up the business to outside investors, there has been little progress. In September last the launch of a Foreign Direct Investment scheme, whereby external parties could own up to 49% of a domestic carrier, fell on stony ground. Every carrier, with the exception of IndiGo, has been losing money regularly and the authorities have been attempting to pinpoint and remedy the problems that are contributing to this situation.
Inflated landing fees at certain airports
haven’t helped matters, whilst the high tax on aviation fuel has been another discouraging factor to outsiders looking in. Moreover, the country’s ground handling philosophy has been constantly changing, with independents in favour one moment, and not the next. For 2013 the government has said that it will be looking to put the sector back on track.
Second equine handling centre for Schiphol
Schiphol has enjoyed the use of a second equine handling centre since December last year. This has been arranged through a joint venture between Aviapartner and Dutch equine transport specialist, European Cargo Services.
Construction of the new facility began late in 2012, and comprises a self- contained unit which is sited within the existing Aviapartner handling centre, this being in the centre of Schiphol’s cargo area. It is also very close to the nearest freighter parking stand.
It will have its own landside entry
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