LECTURE NOTES

915333 - AVIATION ANCILLARY SERVICE

BBA – AIRLINE AND AIRPORT MANAGEMENT
SEMESTER – III

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 UNIT – 1

ROLE AND RESPONSIBILITY OF GROUND HANDLING

In aviation, the term "ground handling" refers to the wide range of services
provided to facilitate an aircraft flight or aircraft ground repositioning,
preparation for and upon conclusion of a flight which will include both
customer service and ramp service functions.

Ground handlers, also known as ground handling staff, are employees of airline
companies or airports who load and unload baggage and freight, as well as
perform various odd jobs to prepare planes for flight. While duties vary between
airports and airlines, there are a number of tasks common to most positions.

 Manning the check-in counters that serve departing passengers. Here, the
duties include checking the passengers in for their flights, redirecting or
rebooking customers whose flights have either been delayed or canceled,
and giving updates to passengers who are waiting in the lobbies.
 Manning the arrival and departure gates. This involves attending to
customers before they board, after they land, or when they are switching
between flights.
 Performing cabin services to ensure that passengers are comfortable
during their flights. Cabin services include cleaning and restocking the
planes before the passengers can board them.
 Issuing tickets to passengers.
 Assisting passengers by answering questions, providing directions, or
attending to their other needs. This includes helping passengers with
inquiries about delayed or lost baggage.
 Taking reservations from passengers who call in.
 Assisting passengers with luggage check-ins at the ticket counter.
 Making sure that all baggage is delivered.
 Confirming the identities of passengers, and providing them with
boarding passes.
 In some cases, ground staff may be responsible for screening passengers
and their luggage for security purposes.
 Giving special assistance to disabled passengers. Outside the terminal, the
ground staff is responsible for:
 Loading and unloading bags and other luggage to and from the plane.

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  Helping passengers and the flight crew to get on and off the plane by
providing the stairs.
 Indicating to the pilots which taxi spots they should use after the plane
has landed.

SELF HANDLING VS OUTSOURCING

SL.NO SELF HANDLING OUTSOURCING

1. Self-handling means the ground Outsourcing part of your business
handling services relating to its to a third party is a proven and
own aircraft or helicopter by an effective way to keep costs down.
airline or helicopter operator.
2. Speed, efficiency, and accuracy Outsourcing can also allow
are important in ground handling airlines to provide services for
services in order to minimize the which they lack the resources to
turnaround time provide themselves, either due to
a lack of appropriate
infrastructure, technology, or
personnel
3.

CASE STUDIES AT INDIAN AIRPORT GROUND HANDLING

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India Ground Handling Services Market Outlook to 2026

The research report titled “India Ground Handling Services Market Outlook to
2026 – Compelling Potential with New Tenders for 90 AAI Airports” provides
a comprehensive analysis on the India airport Ground Handling Services,
passenger and ramp handling services and cargo handling services Market. The
report covers overview and genesis of ground handling services market in India,
market size, market segmentation (passenger and ramp handling services and
cargo handling services) and competitive landscape of major players including
Air India Air Transport Services Limited, Air India SATS, Bird Worldwide
Flight Services, Celebi NAS Airport Services India Private Limited, Globe
Ground India Private Limited, Menzies Aviation Bobba (Bangalore) Private
Limited, Bhadra International India Private Limited and Indo-Thai Airport
Management Services Private Limited. The report also covers Asia-Pacific
ground handling services market snapshot including market overview and size,
competitive landscape, growth drivers and restraints and future outlook, Value
Chain Analysis in India ground handling services market, Growth Drivers and
Restraints, Regulatory Framework, SWOT analysis, Future Outlook, Expert
Opinion and Analyst Recommendations.

India Ground Handling Services Market Size and Overview

The market for ground handling services in India is at a growth stage with a
large number of players competing for a share in the market. The market grew
at an increasing rate during FY’2013 – FY’2018. The primary growth drivers of
the ground handling services market have been increasing air passenger traffic,
rising amount of air freight and increasing number of tourist visits in India.
These were backed by technological advancement in GSE (Ground Support
Equipment) and favorable government policies.

India Ground Handling Services Market Segmentation

The ground handling services market in India has been segmented by types of
services offered into passenger and ramp handling services and cargo handling
services. Passenger and ramp handling services are offered in passenger flights
and cargo handling services are offered in freighter flights. Revenue from
passenger and ramp handling services has accounted for a higher share in the
market due to the large number of and high frequency of passenger flights in
India.

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Competitive Landscape in India Ground Handling Services Market

The India ground handling services market is fragmented with a large number
of players competing in the market. Air India Air Transport Services Limited is
the leading player in terms of revenue in the India ground handling services
market. Air India SATS Airport Services is the second largest company
followed by Bird Worldwide Flight Services and Celebi NAS Airport Services
Private Limited. The other major companies in India ground handling services
market are GlobeGround India Private Limited, Menzies Aviation Bobba
(Bangalore) Private Limited, Bhadra International India Private Limited and
Indo-Thai Airport Management Services. Companies compete on the basis of
service costs and number of ground handling stations.

Future Outlook of India Ground Handling Services Market

The ground handling services market in India is expected to grow at a positive

double digit CAGR during FY’2019 – FY’2026. Increase in the level of
implementation of favorable government schemes in the ground handling and
aviation sector will be the major contributor to this growth. Future catalysts will
be the entry of new domestic and foreign players in the airport ground handling
services market with airlines increasing their fleet sizes and completion of
construction of new airports.

Products Covered:

Airport Ground Handling Services, Passenger Handling Services, Ramp

Handling Services, Cargo Handling Services, check-in, gate arrival/departure,
customer service counters, lost/damaged/transfer baggage handling,
unaccompanied minors and special needs customers, interior cabin cleaning,
temperature control and de-icing, lavatory/water services, handling checked-in
baggage, aircraft tow/pushback, airport bussing, offloading/loading and storage
of pallets, containers and unit load devices, cargo supervision and security
screening, export/import cargo handling and mail, perishable cargo handling,
DG handling, VAL handling, notification of recipients, ULD build up and
break-down

Companies Covered:

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Air India Air Transport Services Ltd. (AIATSL), Air India SATS Ltd., Bird
Worldwide Flight Services, Celebi Nas Airport Services India Pvt. Ltd., Bhadra
International Pvt. Ltd., Indo-thai Airport Management Services, Menzies
Aviation Bobba (Bangalore) Pvt. Ltd, GlobeGround India, Celebi Delhi Cargo
Terminal Management Private India Limited, IFOS Aviation Services Private
Limited, Bird Execujet Airport Services Private Limited, Bangalore Airport
Terminal Management Private India Limited, Cargo Service Centre, KCIC
Private Limited and Indamer MJets Airport Services Private Limited.

Key Target Audience

 Ground Handling Services Companies

 Air Cargo Handling Companies
 Different Airlines and Air Transport Companies
 Airport Management Companies and Airport Authority
 Ground Support Equipment Providers

Key Topics Covered in the Report:

 Introduction to Airport Ground Handling Services Market

 Introduction to Airport Ground Handling Services in India
 Overview of Airports in India
 Regulatory Framework for Ground Handling Service Market in India
 India Ground Handling Services Market, FY’2013 – FY’2018
 Company Profiles of Major Players in India Ground Handling Services
Market
 Success and Failure Case Studies in India Ground Handling Services
Market
 India Ground Handling Services Market Future Outlook and Projections,
FY’2019 – FY’2026
 Asia-Pacific Ground Handling Services Market, FY’2016 – FY’2026
 SWOT Analysis of India Ground Handling Services Market
 Analyst Recommendations
 Industry Speak for India Ground Handling Services Market

CASE STUDIES AT ABROAD AIRPORT GROUND HANDLING

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Airport ownership

Context

Until 1987 all runway and terminal assets in the United Kingdom
(ABROAD) were either owned by the British Airports Authority (BAA),
a corporate enterprise belonging to the ABROAD government, or by
airports’ respective local authorities (ABROAD Local Government).
Airport ownership legislation changed with the publication of the
Airports Act 1986353. The introductory text of this law states that it is
“to provide for the dissolution of the British Airports Authority and the
vesting of its property, rights and liabilities in a company nominated by
the Secretary of State; to provide for the reorganization of other airport
undertakings in the public sector; […] to make provision with respect to
the control of capital expenditure by local authority airport undertakings;
and for connected purposes.”354
The Airports Act 1986, c. 31 Part 1 sets out the transfer of undertaking of
BAA, c. 31 Part 2 setsout the transfer of airports undertaking of local
authorities. British Airports Authority (BAA)
In 1985, BAA was responsible for 7 state-owned airports (Heathrow,
Gatwick, Stansted, Prestwick, Glasgow, Edinburgh and Aberdeen). BAA
was incorporated under the Airport Act 1986 at the end of 1985 and was
privatised in July 1987. The ABROAD government retained only a 2.9%
stake355 in the new private company BAA Plc, which it then sold in
1996.
In 1990 BAA Plc purchased Southampton Airport; in 1992 it sold
Prestwick Airport to PIK Facilities. In 2006, a consortium led by Spanish
construction group Ferro vial took over BAA Plc, changing the name to
BAA Ltd. In 2009, the ABROAD Competition Commission required
BAA to sell two of its three London airports and one airport in Scotland.
In 2009, therefore, BAA Ltd sold Gatwick Airport to Global
Infrastructure Partners (GIP), a USA based group, and shares were
subsequently sold on to four international investors. The 2015 ownership
structure of Gatwick Airport is shown in Figure.

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BAA Ltd then sold Edinburgh airport to GIP in April 2012 and London
Stansted airport to the Manchester Airports Group (MAG) in January
2013.Following this, BAA Ltd changed its name to Heathrow Airport
Holdings Limited (HAL). By 2014, HAL owned only Heathrow airport,
having sold Glasgow, Southampton and Aberdeen airports to AGS
Airports Ltd, a company 100% owned by Macquarie and Ferrovial.
In 2016, there are 7 international stakeholders356 with a stake in HAL, as
shown in Figure.

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Ground Handling

ABROAD legislation on ground handling activities

 ABROAD legislation on ground handling is based on The Airports

(Ground handling) Regulations 1997367 (GHRs), enacted on 3 October
1997. The GHRs implement the European directive (Ground Handling
Directive EU 96/67) on access to the ground handling market at
Community airports, and delegates regulatory oversight powers to the
ABROAD Civil Aviation Authority (CAA).
 The GHRs do not include any specific nationality requirements for
ground handling operators wishing to access the ABROAD ground
handling market, with an exception taking the form of a reciprocity rule:
third countries (either EU or non-EU) that either do not grant ABROAD
ground handlers access to their own markets, or grant ground handlers
from the third country more favourable treatment than ABROAD
handlers, may have the obligations arising from the GHRs in respect of
suppliers of ground handling services and airport users from that third
country wholly or partially suspended by the ABROAD Secretary of
State.
 Approvals for ground handling licences are granted for a 7 year
renewable period for all operators and subcontractors. Approvals are
granted by the managing body of the airport in accordance with the GHRs
rules.

The ground handling market in the ABROAD

 Six of the ten largest ground handlers in the ABROAD are either
international, or part of an international group.

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IATA GROUND HANDLING COUNCIL

Safe and efficient ground operations are essential to airline operations. We are
pursuing a number of projects in this field with the assistance of our ground
handling partners.

The Ground Operations agenda

The IATA Ground Operations objectives focus on four pillars:

 Reduction of ground damage, injury and operational incidents through

standardized processes and training
 Operational efficiency and quality service delivery through the innovation
and technology
 Open, effective market
 Sustainability

This ambitious agenda is led by the Ground Operations Group (GOG) with
support of the Ground Operations Technical Groups formed of ground handlers,
airlines and other industry stakeholders.

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Safety

The IATA Safety Audit for Ground Operations (ISAGO)

ISAGO is a safety audit standards designed in a way that makes it applicable

consistently to multinational ground handlers, as well as to smaller companies
providing services at a single station.

Join the IATA Ground Handling Partnership (GHP)

The IATA Ground Handling Partnership is a forum of ground handling

professionals who can influence the future of the industry by developing
standards and solutions.

Cargo special

Cargo handling is performed at thousands of airports all over the world by

hundreds of companies, big and small. IATA actively drives the development of
ground handling operations standards, best-practice processes and procedures
and promotes global consistency and harmonization.

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