While the current draft civil aviation policy 2015 has come out with some positive, forward-looking directions such as regional and remote connectivity, it has also made some issues more retrograde than necessary. Two such matters that stand out are the indecision on the 5/20 rule and the proposed new ground handling policy. While much has been written on the 5/20 rule and the matter is now with the Competition Commission of India, the ground handling policy has been turned upside down.
Ground handling at an airport involves all aspects of management of an aircraft between the time it arrives and takes off—cleaning, passenger and cargo handling, cabin service, catering service, ramp service, guiding aircraft into parking slots, lavatory cleaning, air conditioning, airstart services, baggage handling, etc. Clearly, speed, efficiency, security and accuracy are important in these services.
One aspect of these services is the use of expensive and sophisticated equipment, its maintenance and parking in the limited area available at an airport. There is a tendency amongst European airlines to outsource this business to ground handling agents (GHAs). European airports with over 20 million passengers tend to have about two GHAs while the European Union wants to have three for greater competition. It has been documented that productivity decreases in proportion to the growing number of ground handlers. More the GHAs, more space for parking their equipment is needed. The pooling of equipment has been suggested but it is found impractical due to competition.
While airlines want greater competition to lower the prices, it becomes a case of decreasing inefficiency—for one of the most efficient airports in the world like Dubai, there is only one GHA, besides the Emirates doing self-handling.
22/12/15 Dr.Sanat Kaul/The Financial Express
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Ground handling at an airport involves all aspects of management of an aircraft between the time it arrives and takes off—cleaning, passenger and cargo handling, cabin service, catering service, ramp service, guiding aircraft into parking slots, lavatory cleaning, air conditioning, airstart services, baggage handling, etc. Clearly, speed, efficiency, security and accuracy are important in these services.
One aspect of these services is the use of expensive and sophisticated equipment, its maintenance and parking in the limited area available at an airport. There is a tendency amongst European airlines to outsource this business to ground handling agents (GHAs). European airports with over 20 million passengers tend to have about two GHAs while the European Union wants to have three for greater competition. It has been documented that productivity decreases in proportion to the growing number of ground handlers. More the GHAs, more space for parking their equipment is needed. The pooling of equipment has been suggested but it is found impractical due to competition.
While airlines want greater competition to lower the prices, it becomes a case of decreasing inefficiency—for one of the most efficient airports in the world like Dubai, there is only one GHA, besides the Emirates doing self-handling.
22/12/15 Dr.Sanat Kaul/The Financial Express
