26 WORLD ANALYSIS
GROUND HANDLING INTERNATIONAL JUNE 2013
Latin American update
Politics aside, it has been an interesting period for handlers within South America.
or Alfonso Fernández Jr, President of Ivyport Logistical Services, the privatisation of the airport in Puerto Rico has been something of an ongoing saga, and the most significant event in the last 12 months. “Generally, the situation in Puerto Rico has been in state of flux, given the year-long efforts to privatise the airport. Some minor handlers have shut their doors, as there was a diminution of air traffic as a result of the general economic downturn in Puerto Rico. Ivyport, though, has continued to work with independent entities in advising to how to best enter the Puerto Rico market, which includes Aguadilla airport. “After a comprehensive process
Aerostar Airport Holdings, a consortium comprising Grupo of Aeropuertos de Sureste ASUR out of Mexico and Highstar Capital IV, were awarded a 40 year concession to run Luis Munoz International airport. On July 19, 2012 former Governor Luis G Fortuno announced that Puerto Rico had received a proposal amounting to US$2.6bn in private infrastructure investment, the first major US airport investment of its type, to immediately improve Luis Munoz Marín International, the island’s main airport. The Governor said that the multi-billion dollar investment would also help improve the Puerto Rico Ports Authority’s financial status, so that it may regain its capacity to adequately fund, develop and maintain maritime and regional airport operations.
“Clearly, this privatisation process will enhance the desirability of operating at Luis Munoz, and a number of airlines have announced expansion of existing routes, including JetBlue and Southwest, which for the first time is flying a route outside of the US mainland. This will also improve the business climate for handlers, who have high hopes for business expansion. The operator has pledged to make substantial investments, and make great efforts in promoting the airport.”
As an aside, it is worth noting that whilst not affecting local handlers, both Iberia (which has been flying to the island for over 60 years) and American Eagle ceased operations at Luis Munoz during the first quarter of 2013. Tania Mena Sandoval is Corporate Filght Services Director at the AirSupport Group of Central America. “The past 12 months have been outstanding for our company: we grew by 100%. We were successful in signing new contracts, which included United Airlines, totalling 1,200 flights a year, Delta Air Lines (with 365 flights a year) and Aeromexico, with 365 flights a year. “Alongside this, our investment in GSE
reached US$1m in 2012; we reinforced our whole fleet, from baggage carts to ASUs. We are currently looking into environmentally-friendly GPUs. “We have also established ASG
Training and Certification, a division whose sole objective is to ensure that
we maintain the highest standards in staff training. It is very difficult to find candidates that fit the profile we require, which is mainly due to different socio-economic issues, such as academic profile, housing location, personal values and so on. This is the challenge that brought about the creation of our ASG Training and Certification division, which has enabled us to out-perform our competition. In fact, we have hired over 100 employees, and successfully trained them, within the last 12 months.” Tania adds that she believes that in many parts of the world not all handlers have matured at the same rate as the top-level carriers, who deal on a daily basis with innumerable safety and operational regulations, together with day-to-day experiences. “When summed up, these allow for the development of a higher level of understanding of ground handling needs. “Thus, many independent ground services providers have the tendency to be reactive to a carrier’s needs, and end up relying on directives from airlines to steer their businesses. That said, only those creative enough to pursue development amidst the industry’s challenges, such as airlines driving cost- cutting, stiff regulations and market service expectations, will succeed.”
More customers and more investment
Carolina Ramelli, at LASA, also brings some good news to these pages. “Last year our operation was
pretty good, thanks to the increasing operations of our clients and the opening of new airports. Because of this, we made investments in conveyor belts, tow tractors, starter units and power plants. We have being training our personnel in accordance with our training programme, with no significant changes during the last year.” She relates, though, that it is difficult to find the right personnel, mainly because of the customer requirement with regard to educational levels and the lack of this type of suitably-qualified personnel within some cities. Further, security requirements limit the available prospects as well, so therefore the labour pool is noticeably reduced in some areas of the country. Staff levels have changed by about 30% over the last 12 months, she adds. “Even though the Colombian economy is doing well, the airline industry continues to be affected by the global economy,” she cautions. Eduardo Barrero, Gerente General at Desacol Colombia, relates that the company has a long list of carriers
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