Shanghai Airport Authority, Shanghai International airport, Air China and Cathay Pacific Airways have announced the establishment of a joint venture company in Shanghai for the provision of airport ground handling services at Shanghai Pudong International and Shanghai Hongqiao International airports.

The joint venture company, to be known as Shanghai International Airport Services, will be 41% owned by Shanghai International and 10% by Shanghai Airport Authority which is the majority shareholder of Shanghai International airport. Air China and Cathay Pacific’s wholly-owned subsidiary, Hong Kong Airport Services (HAS), will hold 24% and 25% of the joint venture company respectively.

Air China and HAS will contribute RMB86.4m and RMB90m in cash to the registered capital of the joint venture company for their respective 24% and 25% shareholding. Moreover, Cathay Pacific and HAS will provide strategic management support to the joint venture company.

Shanghai Airport Authority and Shanghai International will inject cash and their existing ground service equipment into the joint venture company as their contributions in kind in respect of their respective 10% and 41% shareholding in the joint venture.

Shanghai Airport Authority and Shanghai International will facilitate the switching of their existing airport ground handling services contracts, including those in respect of Cathay Pacific and its sister airline Dragonair, to the joint venture company. Air China will also transfer its relevant ground handling services business to the joint venture company at an appropriate time. The existing ground handling services staff of Shanghai Airport Authority and Shanghai International will be transferred to the new joint venture company to ensure the continuity of operations at both Pudong and Hongqiao airports.

Subject to approval by the relevant Chinese government authorities, the joint venture company is expected to commence operations in the third quarter of 2012.

The joint venture shareholders of Shanghai International Airport Services commented on the proposals.

“The joint venture company established by Shanghai Airport Authority, Shanghai International, Air China and Cathay Pacific will leverage on the resources and management expertise of each of the shareholders to enhance the hub operations and efficiency of ground handling services at the two Shanghai airports, providing a solid platform for developing Shanghai into a key aviation hub in the Asia Pacific region.

“Using the extensive ground handling management experience of its shareholders, the joint venture company will deliver improved services to the airlines and passengers flying in and out of Shanghai airports, catering for the increasing demand for air passenger and cargo services in Shanghai and creating economic benefits for the whole community.”

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Jeppesen, a unit of Boeing Flight Services, recently recognised five leading ground handling companies with a Jeppesen Handler of the Year award in respect of their levels of customer service excellence. Divided into five global regions, each regional award winner teamed with the Jeppesen International Trip Planning organisation to provide exemplary service with ground-based aircraft operations and customer relations management for business and commercial aviation operators.

Jeppesen Handler of the Year award criteria includes operation response time, problem solving skills, knowledge of region, customer feedback, ability to manage complaints and overall customer relationship evaluation.

The 2011 Jeppesen Handler of the Year award winners were Air Consult for the Europe and Russia region. Based in Rome, Air Consult co-ordinates and supervises ground handling services throughout Italy. Air Consult accommodates challenging customer requests and provides excellent overall service based on their knowledge and relationships with local authorities and ground handling companies.

Manny Aviation Services took the Canada, Latin America, Australia and the Pacific region award. This year, MAS celebrates 15 years of service, providing personalised coordination and ground support services for business aviation operators in Mexico. MAS provides ground handling services at more than 60 Mexican airports.

Jet Aviation Dubai won the prize for Africa, the Middle East and India. Jet Aviation Dubai provides fixed base operator and maintenance services for business aviation operators. Jet Aviation Dubai’s FBO facility features VIP customer and pilot lounges, a 45,000 square foot hangar and an in-house immigration and customs clearance department.

Argentina Ground Support was voted the best in the US, Caribbean and South America region. Based in Buenos Aries, this growing company provides ground handling services for customers throughout Argentina, Uruguay and Paraguay and offers access to VIP facilities at Ezeiza International airport,

Mainami Kuko Service took the award for the Asia region. Rated as a Jeppesen preferred handler for more than 15 years, Mainami Kuko Service provides ground handling services at all airports in Japan for all types of aircraft. Mainami Kuko Service provides service for operators in Japan.

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Russians arrive in Hong Kong to assess best practice

A Russian delegation, comprising government authorities and leading airlines and airports, has visited Hactl SuperTerminal 1 as the highlight of a fact-finding mission to explore latest developments and best practice in air cargo processing.

The mission included 25 delegates from the Ministry of Transport, Federal Customs Service, the Federal Agency for the Development of State Border Facilities, the Federal Air Transport Agency of the Russian Federation and other State agencies, Aeroflot, AirBridgeCargo, Volga-Dnepr, Tolmachevo airport and STS Logistics.

The visit to Hactl and Hong Kong airport focused on best practice in e-Freight implementation. All the delegates were members of a working group for e-Freight implementation in the Russian Federation. The visit itself was organised by the Russian company Innovation Center of Civil Aviation, a co-ordinator of the Pilot Project of e-Freight implementation in Russia.

The visit to Hactl included a tour of the giant facility, and centred on Hactl’s enhanced e-Freight capabilities within its recently-launched HK$240m COSAC-Plus operating system. Delegates also investigated the airport’s layout, its rôle within the local airfreight community, cargo infrastructural needs, competition in ground handling and precisely how Hong Kong accommodates inter-modal traffic.

ICCA’s President, Dr Rano Dzhuraeva, spoke about the tour. “For more than ten years, Hong Kong airport and Hactl have successfully worked with electronic data messages and documents up to IATA standards. We are very grateful to Hactl for allowing us to look at their impressive facilities and new IT system.

“It is very important for us to see all details of e-Freight experience and practice in Hactl because the first test transit flights in a frame of the Pilot Project will be provided by Aeroflot from Hong Kong via Tolmachevo airport to Frankfurt Hahn, and by ABC also from Hong Kong via Sheremetyevo airport to Amsterdam. All the presentations by Hactl and the Airport Authority’s representatives, and their commentaries, were very interesting and impressive for all delegates.”

Hactl’s MD, Mark Whitehead, adds: “We are flattered that our friends from Russia spent so much time looking at the Hactl operation and seeking our guidance, and we hope that this visit has given them a clearer insight into the most effective ways of developing their air cargo infrastructure, so that Russia can play an integral rôle in the global industry.”

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Amsterdam’s Schiphol has once again been ranked in the top two major European airports (handling over 1m tonnes per annum) in this year’s Air Cargo Excellence Survey.

Schiphol’s 2012 score of 104 was a slight improvement on 2011’s 103 points. And, despite the challenges of running a large airport with significant cargo tonnages and many aircraft movements, Schiphol’s score ranked very high again this year compared to other major airports around the world, positioning it in the top 35% of all airports surveyed.

However, this year’s top spot went to Frankfurt, which has consistently been ranked in the top two alongside Schiphol for some years now. The results were announced at a ceremony in Kuala Lumpur, where senior representatives of the global air cargo community were gathered for the IATA World Cargo Symposium.
Says Schiphol Cargo’s Senior VP Enno Osinga: “There are two airports in Europe which consistently score above average (in other words over 100), and which every year emerge as the top two in Europe. Schiphol is proud to be one of those two.

“After winning the award for a number of consecutive years, we applaud Frankfurt for the improvements they have made, resulting in their number one position this year.”

He continues: “The high scores achieved both by Frankfurt and Schiphol are a reflection of the constant drive for innovation and improvement. We will continue on this track to ensure that we remain one of the top cargo airports in Europe. We thank all those who ranked Schiphol so highly.”

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Already representing over 70% of the global air cargo market, Cargo 2000’s quality management system has been strengthened further by Damco’s decision to join the group.
Cargo 2000 now has over 80 members representing the airline, freight forwarding, ground handling, road transport, IT and airport sectors, all working to improve the quality of air cargo by implementing Cargo 2000’s Master Operating Plan. It defines an industry standard process for moving goods from the door of the shipper to the door of the consignee with shipment planning and measurement systems which pro-actively monitor progress and alert operators to deviations to the plan. The program also generates the data needed to drive the quality management process.

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It has been a good start to the year for AirRadio.

In February, ASIG joined the Community Trunk Network at Aberdeen airport. This was a strategic decision for ASIG to use a common communications platform to that at London’s Heathrow, which the handler actually joined in the summer of 2011.

Also new for 2012 has been Servisair, although the handler was already a multi-station user of AirRadio’s Community Trunk Networks; the company joined the AirRadio trunk network at Glasgow airport.
The network provides Servisair operations with a wider coverage area, a more resilient platform (that is backed up by a fully supported maintenance and one-on-one replacement service) that ensure operations are maintained should devices be out of service for repair. Commonality of network and device use with other locations provides a useful opportunity for economies of scale and other efficiencies for Servisair.

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RAK Airways, the youngest national carrier of the United Arab Emirates and the first hybrid carrier with low fares and full-service passenger offerings in the Middle East, has selected Horizon, the passenger service solution from SITA.

The airline is reiterating its commitment to satisfy passenger travel needs by selecting Horizon, which will facilitate interlining with other carriers as well as enable exponential growth in the airline’s business in the coming years. Omar Jahameh, CEO of RAK Airways, commented on the choice.

“RAK Airways is on a steady path of growth, thanks to the trust and commitment of our passengers. Signing up with SITA Horizon will meet all of RAK Airways’ passenger management needs as well as enable exponential growth in the airline’s business in the coming years.

“The SITA solution is very comprehensive and is backed by an investment programme at RAK Airways. SITA has the state-of-the-art technology, depth of industry expertise and local presence to work in partnership with us on this very significant implementation. The solution will give us the ability to operate interline partnerships and we are now ready to sign our first interline agreement with a partner carrier.”

The six-year, multi-million dollar deal will provide RAK Airways with SITA’s passenger services that are currently used by more than 120 airlines worldwide. SITA Horizon will provide fare pricing, ticketing, reservations, revenue integrity, passenger revenue accounting, online booking and shopping services. In addition, it will include full departure control services for the airline at its main hub Ras Al Khaimah International airport. The new integrated system will be used by up to 200 reservations personnel at RAK Airways’ headquarters call centre, as well as at travel agent offices.

Hani El Assaad, SITA’s Regional Vice President Middle East and North Africa, said: “SITA Horizon will provide a complete passenger service solution for all areas of RAK Airways’ operations. It will allow the airline to develop its strategy of being unique among the region’s airlines as a hybrid carrier that offers full service to passengers with interline partnerships with other carriers.

“Passengers will benefit from an integrated solution that takes them through the complete journey with RAK Airways. We are delighted to be working in partnership with this fast-growing and innovative airline.”

RAK Airways is the flagship carrier of Ras Al Khaimah, one of the seven emirates of the United Arab Emirates. The airline currently carries just under half a million passengers a year to 11 destinations and plans significant growth over the term of the SITA contract to the point of carrying around 2.5m passengers per year.

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This issue, Lisa Harig looks at the subject of navigating administrative enforcement actions.

United States Customs and Border Protection (CBP) recently announced that it plans to amend its mitigation guidelines for fines, penalties, forfeitures and liquidated damages in order to, amongst other things, tighten its policy with respect to latepetitions. In calculating the fees for filing a late petition, CBP will now base such late fees on the full assessed amount of the claim rather than the mitigated amount. In some cases, this could mean an exponential increase in late fees, even if the mitigated penalty is relatively low. As governments look increasingly to civil penalties and fines to regulate activities at airports, it is important to remember that this enforcement activity will have a significant long-term impact on aviation service providers at airports. Meeting deadlines in enforcement actions is critical to mitigating costs and successfully navigating an administrative enforcement action.

An enforcement action generally results from a triggering event, which can be anything from an accident or incident to an audit, investigation or observation to a complaint or anonymous tip-off. The investigation usually begins with a letter of investigation from the relevant agency. This document will offer you an opportunity to respond within a set amount of time, usually ten to 30 days. At this stage in the process, there is normally no obligation to respond to the government agency. It should be noted that any response (be it a telephone call, letter or e-mail) will be recorded and maintained in the investigation file, so that anything you say or write will become part of the record.

Once the investigation is over, there are four possible conclusions: (1) no action taken; (2) administrative action; (3) legal action or informal adjudication; or (4) referral for criminal prosecution. The best possible outcome is one in which no action is taken and the case is closed. Administrative action can take the form of a Letter of Correction or Letter of Warning. While there is no fine or penalty attached, administrative actions are non-appealable and become part of your violation history (although, depending on the agency, some may be removed or expunged after a certain period of time has elapsed). Legal action or informal adjudication generally involves the issuance of a Notice of Penalty or Notice of Proposed Penalty, and it is here that deadlines really start to matter. The worst possible outcome is that where the case is referred for criminal prosecution, but this is a rare occurrence.

If you receive a Notice of Penalty or Notice of Proposed Penalty, it is time to consult an attorney. Although informal, the civil penalty process is quasi-legal and may have a lasting effect on your business. In addition to the financial impact of the fine, any civil penalty assessed will become part of your violation history and will be considered an aggravating factor in calculating the severity of the proposed fine or penalty in future violations.

The Notice will state the relevant facts, alleged violations, and proposed civil penalty (ie fine). The proposed fine is usually calculated based on aggravating and mitigating factors, including the nature and circumstances of the violation, the alleged violator’s level of experience, the significance or degree of risk created by the violation, the attitude of the alleged violator, the prior violation history, the extent of damage or harm to persons or property, any criminal sanctions already paid, and the economic impact of the alleged violator.

The Notice will also outline your options for responding, as well as clearly outline the deadline for the response. Depending on the agency, you will have several of the following options when you receive the Notice. You may pay the penalty as proposed; submit written information for consideration; request that the civil penalty be assessed in a lesser amount; request an informal conference with an agency attorney; or request a formal evidentiary hearing before an Administrative Law Judge.

Deadlines at the post-investigative stage are set forth in regulations and are generally mandatory. Missing a deadline at this stage is tantamount to accepting the Notice (facts, alleged violations and proposed fine) “as is” and agreeing to pay the entire proposed civil penalty. This is almost never the best option.

Submitting written information for consideration or requesting an informal conference with an agency attorney gives you the opportunity to present evidence of different (favourable) facts and/or mitigating factors. If the actual facts of a situation are different from those outlined in the Notice, proof of this might result in fewer regulatory violations or in less serious violations being assessed. This is obviously helpful, since any violation is tracked as part of your violation history and will impact the level of fines or penalties assessed in the future. Presenting mitigating factors may result in a lower fine or penalty (but not less severe or fewer violations). Mitigating factors include corrective action you have implemented, systematic changes to procedures in order to prevent future violations and training and education designed to educate employees or update prior training.

Regardless of the nature of the violation and/or the amount of the proposed penalty, you will have a number of options available to you under the applicable regulations. However, if you miss a deadline in the process, certain options will disappear.

So pay attention to deadlines in enforcement actions – your company’s financial health and reputation may depend on it.

Qantas announced in mid-April that it would be conducting a feasibility study into the potential for an Australian sustainable aviation fuel industry, backed by funding from the Australian Government.
The Hon Martin Ferguson MP, Minister for Resources, Energy and Tourism, spoke prior to Australia’s first flight to be powered by sustainable aviation fuel, operated by Qantas from Sydney to Adelaide using a fuel type derived from recycled cooking oil.
Qantas’ CEO, Alan Joyce, noted that the project would explore the conditions needed for the production of aviation biofuel from sustainable sources within Australia.
“Today is a historic occasion in Australian aviation,” he said. “We are delighted to be operating Australia’s first sustainable aviation fuel flights and to be launching a study into the feasibility of producing such fuel in this country.
“Alternatives to conventional jet fuel are vital to the aviation industry meeting ambitious targets for carbon-neutral growth and emissions reduction.
“Australia has the skills, resources and infrastructure to take a lead in this emerging sector, which the CSIRO has estimated could generate up to 12,000 jobs over the next 20 years. But there are also significant challenges – which is why we need to establish a clear plan.”

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British Airways is to extend a trial of an innovative paint coating designed to improve fuel efficiency in a move that could save the airline millions of pounds in fuel costs.

The tripleO coating bonds with the surface material, such as paintwork, bare metal, leading edges and even rivets, to which it is being applied. It creates a perfectly smooth finish, forming a barrier that prevents dirt building up on the aircraft and thereby improves aerodynamics.

It has been applied to a British Airways Airbus A318 aircraft, which operates exclusively on the London City to New York route. During the year-long trial period, the aircraft used less fuel than a second Airbus A318, which did not have the coating.

The coating will now be applied to a Boeing 777-200, with data being collected during a further trial period. It is hoped that applying the coating to larger aircraft will result in an even greater fuel efficiency improvement, with the airline looking to save in excess of £100,000 during the B777 trial.

British Airways’ Director of Engineering, Garry Copeland, said: “We have been exploring a number of initiatives to improve fuel efficiency. tripleO not only delivers a significant saving, it also improves aircraft appearance. We look forward to assessing its impact on a larger aircraft.”

As well as improving fuel efficiency, and the aircraft’s appearance, the coating should lead to a prolonged paint life. Further environmental benefits derive from less frequent cleaning and painting.

Ross Thornley, Brand Director at tripleO, added: “We are delighted to see the results from more live tests. To prove such a substantial return on investment for our clients, especially British Airways, is the result of many years of hard work. Our extensive research and development in our product coating, application methods and the wind tunnel tests over the last four years is now paying dividends for all our clients.”

Before applying the tripleO coating, the aircraft is thoroughly cleaned using a polarising solution. This allows the coating to bond with the surface of the aircraft and creates a smooth finish. The coating will last approximately two years before a reapplication is required.

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Servisair has announced the opening of the first Aspire Lounge at Gatwick airport’s North Terminal.

As the biggest airport lounge operator in the UK, Servisair is confident that the new range of customer centric facilities will offer the ultimate traveller experience.

Incorporating a relaxed environment with the very best in customer service, Aspire lounges will also be offering a freshly prepared complimentary menu, including hot food, snacks, treats, drinks and free wi-fi, all of which is situated away from the hustle and bustle of the main airport terminals in ergonomically designed and comfortable surroundings.

The design of the lounge aims to provide a range of zones to meet the needs of different travellers. Whether guests are travelling for business or leisure, there is an area specifically developed around their needs, thereby ensuring that each journey begins with the perfect start. Throughout the lounge customers will benefit from carefully designed side tables within the seating areas, which will facilitate laptop, iPad or gaming console charging facilities. In addition, specially created laptop trays will be provided in the Business Zone.

As an environmentally aware company, Servisair has ensured that all lighting systems are based on the latest low energy LED technology coupled with elegant pendants and task lighting. The choice of colours, textures and fabrics have also been carefully selected to create a stylish, comfortable lounge that has both impact and style.

Further, the management team has looked at every minute detail from the ground up, ensuring that guests will receive only the best an airport lounge has to offer.

Stereotypically, airport lounges carry the perception of high expense rather than affordable luxury. Servisair believes that an airport lounge can often deliver better value for money when compared to the cost of products within an airport terminal.

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In April the new SWISS Arrival Lounge at Zurich airport opened its doors. The luxurious 700 square metre lounge offers arriving passengers a wide range of services, including facilities for working, relaxation and freshening up.

Located in the public area of Arrivals 2 at Zurich airport, the lounge is readily accessible within a few minutes of landing and particularly appealing for passengers coming off long-haul flights. The lounge is fitted with state-of-the-art equipment and features elegant SWISS design. A distinctive limestone wall from the Jura mountains and suitably stylish furniture combine to create an appealing atmosphere.

The SWISS Arrival Lounge’s impressively spacious refresh facilities include 20 showers, from which it is possible to order an ironing service with the press of a button. Three hotel-style bedrooms, one with a private bathroom, round out the features of this attractive facility. Lounge users with a thirst to quench or hunger to satisfy will find the bistro area offers an extensive buffet with a wide selection of cold and warm breakfast dishes along with fresh juices and a choice of coffees. The adjacent lounge area is furnished with comfortable Vitra seats and is enhanced by a comprehensive selection of newspapers and magazines. Guests wishing to get some work done will be able to take advantage of the ten work stations and free W-LAN. Guests also have a private telephone cubicle at their disposal where they can make calls undisturbed.

The Arrival Lounge, which is open daily from 05:45 to 13:00 and replaces the former Arrival Lounge in Arrivals 1, is available to SWISS status customers, SWISS Business and First Class passengers and Star Gold members.

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Suvarnabhumi International airport in Thailand has deployed X-Sight Systems’ FODetect automated foreign object débris detection system.

FOD consists of any misplaced object found on airport surfaces which can damage aircrafts, engines, tyres or fuselage, creating a risk to passenger safety, disrupting airport services and causing expensive repairs.

The system deployment follows the completion of site acceptance tests conducted for five months on the airport’s two runways to meet the requirements of FAA regulation for FOD detection equipment.

FODetect is an automated FOD detection technology that has been tested by the FAA at Boston’s Logan International airport and which has met the required level of performance require by FAA regulations.

The detection capabilities of the system are derived from a hybrid optical radar sensing technology, advanced image processing software and close range detection. FODetect is embedded in surface detection units (or SDUs) that are co-positioned with the runway edge lights for easy installation.

X-Sight Systems President and CEO, Alon Nitzan, said that he was delighted to hand over the FODetect system to AOT.

“The installed system has already detected hazardous FOD on one of the runways at the airport, which was retrieved immediately and demonstrated the system’s efficiency while contributing to runway safety,” he added.

Suvarnabhumi airport, which was opened in 2006, is capable of handling 45m passengers a year, 3m tonnes of cargo and 76 flights per hour.

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Take a ramp handling operation for a very busy home base, short haul domestic carrier that is growing steadily. Shorten ground times, add cargo and then sprinkle some international destinations on top; then add more cargo. Now mix in the fact that loading, cleaning, sorting, GSE operation, baggage delivery and cargo delivery are all very separate departments. Stir in the unique culture and traditions of Thailand and then store in a hot, humid place for several years.

My challenge in Bangkok was to enhance the safety of the operation that resulted from that particular recipe. The solution that we developed for our operation may not be a perfect fit for yours, but I offer it as a case study.

Even the best Turnround Co-ordinator (TRC) cannot be in two places at the same time. There are times when the TRC has to be in the cockpit, or the cabin, or at the gate, and these times inevitably are when something critical is happening on the ramp.

In order to improve the safety oversight of each turnround, Bangkok Flight Services introduced a Bay Safety Co-ordinator (BSC) function. The BSC wears a distinctive green cap in order to be easily identified and assists the Turnround Co-ordinator by ensuring all the underwing activities of the various BFS departments and other contracted service providers (such as catering and fuelling) are undertaken safely and in a co-ordinated manner.

The BSCs, or green caps as they are commonly called, are all qualified aircraft marshallers who have undergone additional safety and communications training. They are responsible for the standard marshalling service of the pre-arrival parking bay check, marshalling the aircraft on remote bays without parking aids, placing chocks and cones and headset communication. This is where the marshaller would previously have departed the bay, but the BSC remains throughout the turnround, to co-ordinate all the underwing activities and ensure standard operating procedures are followed by all parties. These include keeping a clear exit for the fuel truck, managing all the carts and dollies so that they leave clear routes for catering vehicles, ensuring empty carts and containers are closed before towing, setting fuel quantity switches, monitoring the refuelling process and ensuring equipment is marshalled. At departure time, the BSC removes cones and chocks and then provides the headset communication during pushback.

The introduction of the BSC allows the Turnround Co-ordinator to focus on crew briefing, load control, communications, on time performance management and overwing activities.

The concept was introduced in September 2011 to the Bangkok Airways operation, embracing some 50 flights a day. It proved to be very successful, so the Turnround Co-ordinator plus Bay Safety Co-ordinator is now the Bangkok Flight Services standard. The concept is currently being rolled out to the entire BFS customer portfolio.

Although we mainly used existing resources, headcount of the marshalling department needed to be increased to ensure that one BSC remains at the aircraft side during the handling operation. We also upgraded the salary for qualified BSCs to reflect their added responsibility. These costs are considered to be an investment in safety by the BFS management.

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A United Airlines flight from San Francisco to Shanghai was forced to wait two days in Anchorage, Alaska because of malfunctioning lavatories. The broken toilets were apparent three hours after take-off from San Francisco, causing the aircraft to make an emergency diversion to Alaska’s Ted Stevens International airport.
In Anchorage, 262 passengers waited on the B777 until the evening, before being allowed to deplane. It was later still in the evening by the time the airline had the meal and accommodation vouchers sorted out.
Although a second B777 arrived the following day, a computer malfunction resulted in a delay of several hours before passengers were told to disembark once again. Finally, a third B777 arrived on the day after that – and successfully departed with the disgruntled travellers aboard.

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If you’re on a long-distance flight, then opt for an aisle seat. That seems to be the advice of doctors who are facing growing numbers of patients with deep vein thrombosis, or DVT as the condition is more commonly known.

The American College of Chest Physicians recently issued a report that advises air passengers not to sit by a window because of the restrained position. The longer the flight is, of course, the greater the risk. The study also reveals that the risk of DVT is exactly the same in business class or first class as it is in economy class.
Deep vein thromboses are blood clots that usually develop in the legs. If a clot breaks away, a clot can cause a pulmonary embolism – a blockage in the lungs that is potentially fatal. Some more positive news for fliers can be gleaned from doctors’ assertions that they have found no “definitive evidence” that drinking alcohol raises the DVT risk. However, a passenger is at increased risk if he or she has recently undergone surgery.

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Top of the agenda today for any airline is the ongoing battle with more economic use of fuel. Fuel hedging aside, what can realistically be done to offset the cost of aviation fuel? We’ve seen a host of money-making compensators, such as charging for checked-in bags, seat allocation and priority boarding. None of these has proved endearing to the travelling public, though. More subtle means seem to have faded away with the passage of time, exercises like the famous American Airlines strategy that saved a massive US$40,000 back in 1987. All it did was eliminate one olive from each salad that it served in first-class.

Which brings us to Ryanair’s latest initiative: that of encouraging its cabin crew to lose weight and so aid fuel efficiency.

Low-fat crisp, anyone?

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• SATS has announced the appointment of Tan Chuan Lye as the Group’s President and CEO, with effect from
  April 1 2012.

• Pat Pearse, Managing Director, ASIG Europe, will officially head ASIG’s growth and operations strategy for the Asia Pacific region.

• JetBlue Airways has appointed Eash Sundaram to the post of Executive Vice President & Chief Information Officer.

• In the middle of January Olu Owolabi, who was also the pioneer of SAHCOL’s autonomy in 1999, was engaged as Managing Director/CEO.

• In the middle of January Olu Owolabi, who was also the pioneer of SAHCOL’s autonomy in 1999, was engaged as Managing Director/CEO.

• Luis Gallego, Chief Operating Officer at Vueling, has been appointed Chief Executive Officer of Iberia’s new subsidiary airline, Iberia Express, which started operations at the end of March 2012.

• Oman Air has announced the appointment of Saleem Bin Amanullah Bin Abdul Hussain to the new rôle of General Manager Customer Services.

• Mark Schwab has been appointed as CEO of Star Alliance and will be based in Frankfurt. Schwab joins from member United Airlines, where he held the position of Senior Vice President Alliances.

• Former Hewlett Packard Norway’s CEO, Eivind Roald, will become the new Head of Sales & Marketing at SAS Scandinavian Airlines.

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The new Solaris Urbino bus has brought autonomous electric mobility to the city. Poland-based Solaris’s first electric bus has been designed to cover up to 100 kilometres without the need to be recharged.

A host of new design features have combined to bring down the vehicle’s weight and compensates for the burden of the batteries. Volume production is due to start in 2013. Solaris’s founder, Krzysztof Olszewski, unveiled the first Solaris hybrid bus five years ago. Zero emissions, quiet operation and independence from rising fossil fuel prices are just three of the Solaris Urbino’s key attributes for sustainable mobility. The bus itself has been based on the proven Alpino 8.9 LE midibus. A new electric drive takes up less space, which allows the rear axle to be moved by 310 millimetres towards the back of the bus, thereby freeing up valuable space for passengers on board. With its skilful use of the low-entry concept, the Solaris Urbino electric offers plenty of seats, despite its small dimensions.

At just 8.9 metres long and 2.4 metres wide, the bus nevertheless has 26 seats. Depending on specification, between 21 and 29 fixed seats and an additional two tip-up seats are quite possible. Step-free entrances make the bus easily accessible; and there is a dedicated space for wheelchair users and pushchairs opposite the second door. The drivetrain of the Solaris Urbino electric is supplied by Solaris’s system partner, Vossloh Kiepe. This German specialist has built on decades of experience as a manufacturer of electric traction equipment to bring the perfect technological set-up to the Solaris Urbino. At the heart of the bus lies a 120 kilowatt, four-pole asynchronous electric motor, delivering up to 1,400 Nm of torque. This has been fitted under the floor at the back of the bus, where it powers the rear axle and smoothly brings the electric bus up to typical city traffic speeds of around 50 kilometres/hour. Energy is stored in two 700 kilogramme lithium-ion batteries. The batteries are supplied by Wamtechnik of Warsaw and are mounted at the rear of the bus on each side of the motor. During braking, energy is recuperated and stored in the batteries, which additionally are charged from an external plug-in connection. At 3 x 400V/63 A, it takes as little as four hours to completely refill fully exhausted batteries. With the batteries tucked away within the engine compartment, only the system’s power electronics and the legally-required brake resistor are mounted on the roof. The brake resistor is only for use in the event of the batteries becoming unable to offer any capacity for recuperated energy, a situation that is virtually avoided through the Urbino’s energy management software. Current energy storage technology requires heavy batteries and to compensate for this additional burden as far as possible, the Urbino consistently uses new approaches to lightweight construction.

The employment of new, lighter materials naturally leads to reductions in weight. Engine flap and side panelling of the prototype are made from carbon fibre, while the interior roof panels use foamed aluminium composite material. Mahogany instead of birch plywood was chosen for the floor, aluminium rims replace steel and classic seat mountings and thinner side windows have shed further kilogrammes. Bringing down the weight still further is the electric drive itself. It has the effect of making fuel tanks, the fuel and lubricants superfluous and reduces the weight total by another 350 kilogrammes. All this means that the Solaris Urbino electric weighs in at just 750 kilogrammes more than its conventional, diesel-powered siblings. Finally, to enable a fully electric set-up, all the auxiliaries have been electrified. This includes air-conditioning units, which are available as options. All exterior and interior lighting has been changed to energy-efficient LED technology.

Drivers of the Urbino will doubtless enjoy the ergonomic touchscreen dashboard, which clearly lays out all vehicle functions, along with constantly updated energy management data, including battery charge levels. At the moment the company is offering diesel or CNG version buses for use at airports: these are fitted with doors on both sides.

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Fiji’s national carrier Air Pacific has officially opened its new Tabua Club Lounge at its home base at Nadi International  airport, the country’s international gateway.  Conveniently sited on the ground  floor of the Departure Hall of the airport, the Tabua Club Lounge is located to the left of Air Pacific’s premium business lounge. It is for the exclusive use of the airline’s Tabua Club members  and those customers wishing to pay to use lounge services in Nadi before their international flights.

The new 75-seater lounge provides a quiet, inviting environment which will be especially attractive to those flying during busier departure times at Nadi. Guests can enjoy a delicious selection of hot and cold savoury snacks prepared by some of the best local culinary hotspots, and beverages which include a selection of alcoholic and non-alcoholic drinks. With shower facilities and high-speed Internet access, the Tabua Club Lounge is a Fijian Oasis, said to cater to the discerning traveller who enjoys life’s little extras.

Air Pacific’s privileged Tabua Club members will have complementary access to the Lounge when travelling on the day on an Air Pacific ticket. Other guests wishing to use lounge services can do so at F$75 per day, which is available for purchase  at check-in counters  or at the Lounge reception.

The new Tabua Club Lounge is a demonstration of Air Pacific’s continued commitment towards  enhancing the travel experiences of its guests.  It complements the existing premium Business Class Lounge, which is now dedicated exclusively to its Business Class customers.

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San Francisco airport has opened what it terms a first of its kind yoga room. Low lights and soothing  blue walls aim to afford travellers an oasis of calm in which to flex, twist and manipulate after a long flight.

“As far as we know it’s the first (yoga room) at an airport anywhere in the world,” declares Michael C McCarron, Director of Community Affairs for the airport. He said the idea for the room, in the newly refurbished Terminal 2, came from a passenger suggestion  at an open house. It joins the Berman reflection room, a space intended for silence and meditation, which located before Terminal 2 security. Airport Director John L Martin called the room, which opened this year, another leap forward in providing travellers the opportunity and space to relax and decompress on their own terms. The architects, Gensler Design, set the lights low and warm in contrast to the light, bright concourse, according to a statement, and a floating wall was constructed to symbolise “a buoyant spirit and enlightened mind.“

Large felt-constructed rocks will be installed in the spring in keeping with the concept  of the Zen gardens  of Japan. John Walsh, Duty Manager at San Francisco airport, says that the room is already attracting its share of travelling yogis, many of whom are equipped with their own props.

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RA

Virgin Atlantic Airways has contracted Gatwick-based  Avtura to use its pioneering Real-time Aircraft Turnaround Tool (or RATT) at London’s Heathrow  and Gatwick airports. The hand-held PDA device, rolled out at the start of the year, is expected  to further boost the airline’s on-time performance.

RATT effectively replaces paper-based tools for managing the aircraft turn and provides real-time prompts  for when key activities need to be performed. This enhances the management of all aspects of the aircraft turnaround. The system also captures  real- time information at the aircraft side, which gets displayed at the airline’s operations centre, enabling immediate  priority of overall activities, should there be any operational disruption, such as severe weather. The data captured drives trend analysis as well as continuous improvement of the airline’s airport operations.

Virgin Atlantic is working closely with all its suppliers, as well as the airport authorities  at Heathrow  and Gatwick and NATS, to deliver the best possible punctuality.

Virgin thus becomes  the first airline in the UK to adopt  Avtura’s PDA-based system that co-ordinates all aspects of the aircraft turn. Corneel Koster, Director of Operations,  Safety and Security for Virgin Atlantic, commented on the application.

“This is a fantastic piece of airline-airport process innovation. The Avtura system

will make a significant contribution  to our punctuality drive. Having real-time triggers, live visibility of all aspects of the aircraft side operation and accurate  management information makes all the difference to our teams managing on-time performance.

“At Virgin Atlantic, we are passionate about  delivering high levels of punctuality

to our passengers, as part of the world-class service for which we are known.”

According to Avtura, having Virgin Atlantic on board has created  a real opportunity for growth  for the specialist.

“With greater  competition amongst airlines and increased costs, the turnaround is critical. Every minute counts; every minute costs,”

avers Christopher Meeking, company CEO. “We are very excited to be working with such a dynamic and forward thinking airline as Virgin Atlantic and to be further developing our relationship in the long term.” Virgin Atlantic and Avtura have worked together closely for the past six months to tailor the system to the airline’s specific requirements, ensuring a smooth  and successful initial deployment at Virgin’s base airports of Heathrow  and Gatwick.

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According to Morgan Stanley, sales of smartphones and tablets are set to overtake the PC; indeed a new, post-politically correct era looms ahead, one that will see a shift

from reactive, demand triggered approach to mobility to something that will be pro-active and have a strategic priority.

With this in mind, an innovation that would assist the manufacturing sector was German company’s SCHAD’s raison d’être. Five years in the developing, this remote  monitoring  solution was aimed at customers seeking a slicker monitoring  operation. The retail sector was the obvious target

- but then that of the aviation sector appeared on the horizon…

Munich, Germany’s second largest airport, caters for around  33m passengers annually. With this kind of throughput, the station relies heavily on a sophisticated baggage handling system and the application installed there is actually the work of Vanderlande.

It goes without  saying that timing within the airport’s logistics operation is as tight

as it is inflexible. Speed and reliability are of paramount importance in this context, for there is no possibility of second best. At Munich, altogether, there are three classes of automated conveyor line which are capable of handling up to 800, 1,200  or 2,400  pieces of luggage  per hour, which equates to a maximum rate of 40 pieces of luggage  being sorted every minute.

With this installation, SCHAD saw a potential  use for its specialist product.  At the time, Vanderlande  was keen to identify ways in which to further optimise operational performance and to ensure high availability of system parts using new technology.  Enter EXTEND7000, which utilises an existing wi-fi or GPRS infrastructure. This was identified as an innovative, low cost, functionally rich mobile control, monitoring  and maintenance solution. As a bolt-on,  or accessory to the main Vanderlande  product,  EXTEND7000 has quickly proved its worth, supporting Vanderlande  service engineers  whose responsibility it is to run the high-speed baggage handling systems to ensure that luggage  reaches customers or connecting flights on time. This has the net result of reducing that dreaded LBI, the Left Behind Index, which costs the service provider both time and money. (Currently, repatriating  a bag that misses a flight can fall anywhere between £100-150). As a consequence, both Vanderlande  and airport management have been able to exceed service level agreements and the appropriate financial rewards have been accrued.

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Hanjin Logistics Europe, a subsidiary of South Korea’s Hanjin Logistics, has opened a new on-airport  base at Schiphol.

The new facility, which includes both bonded and non-bonded warehousing, will act as a Benelux distribution centre for the company’s large volumes of import traffic arriving at Schiphol.

Hanjin Logistics was launched in 2001, and opened its first European branch only in 2008; in Holland, it also has an ocean freight operation at Rotterdam port. The company provides international logistics and supply chain solutions, including forwarding by air, sea, road and rail, via a growing network of owned and partner offices at 60 locations throughout Europe, Africa, Oceania, Asia and the US.

The company is particularly active with customers in the automotive, electronics, chemicals, apparel,  FMCG and heavy industrial sectors.

Says Jan de Kreuk, Head of Hanjin’s Benelux Airfreight Division: “We are delighted to join the vibrant freight community at Schiphol. This is an important next step in our European expansion, taken in response to our customers’ needs.  Schiphol’s location, excellent road connections and wide range of international air services make it ideal as a platform for distributing our customers’ goods throughout Europe.” Hanjin Logistics is one of 150 logistics service providers who have established operations at Schiphol airport. The company is fully e-Freight enabled, and its new Schiphol operation joins one of the world’s most active paperless airfreight communities

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Fraport Cargo Services recently finalised one of its biggest projects so far, one that will see it optimise processes in its import warehouse. Following a testing phase,  the new materials handling system in the FCS import warehouse has been successfully operating since December 2011.  For the near future, related projects are already being planned.

The number  of rack systems has been increased and there is also now a new separate area for large pallets, Europallets and extra large cargo units. The narrower aisles and higher shelves are now harmonised with the material flows and have significantly increased the storage  capacity. New forklift trucks have been specially designed for Fraport and each is equipped with a touchscreen and scanner facility.

In addition to this, the computer system has been optimised for the revised material flows and is now more efficient than ever before,  since it ensures a quicker removal of items through faster data transmission. In addition,  the full integration of all interfaces ensures fast processing time.

Such process enhancements, together with capacity increases, have led to shorter waiting times for forwarders,  a faster delivery and thus an improvement in both productivity and customer  service.

Winfried Hartmann,  Managing Director FCS, pronounced himself delighted  with developments.

“Rising costs and worsening  capacity bottlenecks require continuous optimisation of logistical processes to stay competitive.

A boost and strong fluctuation  in demand cause a soaring capacity shortage. The new import handling system results in an increase of more than 50%  storage  space, a larger handling area, higher productivity and faster delivery. We are pleased to be able to provide our clients with an ultimately better  service.”

All of the staff involved were trained from the beginning  of the project to ensure the highest quality and reliability of all processes throughout the changeover.

Standardisation, together with a reduction in manual input, has reduced  the likelihood of error and has increased both productivity and quality.

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SATS has entered into a new joint venture agreement with China Eastern Airlines, China Southern  Airlines and Capital Airports Holding Company for Beijing Aviation Ground Services.

Separately, SATS has also signed another new agreement with Eastern Air Catering Investment Company, China Southern  Airlines and Capital Airports Holding Company for Beijing Airport Inflight Kitchen.

Established in 1994 and 1993 respectively, BGS provides ground  handling services whilst BAIK offers inflight meals to airlines operating out of Beijing International.  Both joint venture companies  have a 20-year operating term which will expire in 2014 and 2013 respectively. SATS currently holds a 40%  equity stake in both companies  while Capital Airports Holding Company owns the remaining 60% stake.

Subject to the approval of the Chinese regulatory authority,  these new agreements will serve to renew the respective tenures of BGS and BAIK as well as introduce  new joint venture partners,  namely China Eastern Airlines and China Southern  Airlines. As a result, the new shareholders will each own 30%  of BGS and BAIK while SATS’ shareholding will be diluted to 28%,  with the balance of 12%  being held by Capital Airports Holding Company.

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Ground handler Aviance, which is based in Accra, Ghana, has just introduced a towbarless pushback tractor to the area of West Africa. The Goldhofer (model AST-2R) made its debut moving a United aircraft at the station and is the first of its kind within the African continent. Coincidentally, the exercise represented the very first towbarless movement to have occurred within West Africa.

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At the end of January, Powerstow completed an order from KLM in Schiphol. The order, one that had been placed at the beginning  of 2011,  involved a total of 17 Power Stow Rollertracks mounted on TLD electrical units.

Separately, when Lufthansa Cityline brought the Embraer into operation at Billund airport, the carrier approached the Danish specialist to ensure that the Rollertrack could also be used on a range of Embraer aircraft, namely the 170/175/190/195. Consequently, Power Stow duly developed  the Rollertrack 450E, which has now been approved  by Lufthansa Cityline and KLM Cityhopper ground  services and engineering departments. The 450E standard is now the company’s current build standard.

Len Kirsch proposes additional contract clauses to take into account the uncertainty of the longer term agreement.

Long term contracts.

Sounds great?

Not always.

Long term agreements can be a problem without a mechanism for price increases when unforeseen circumstances increase the cost of providing those services.

Remember, the IATA SGHA provides for termination on 60 day notice unless Annex B creates an exception by adding a longer or set term. The SGHA ignores the fact that a ground handler may require a term or even a long term agreement in return for investing large amounts of money in ground support equipment and other start-up costs. Otherwise, how does a company spend money, negotiate purchase agreements, sign a lease for a break room, office space and possibly ramp or cargo warehouse space, not knowing if the carrier will continue the contract for an extended period – or if it will cancel after 60 days’ notice.  Have any of you lost a contract when a competitor makes an unsolicited bid for your contract?

Nothing stops parties from negotiating term agreements, even long term agreements, but the price for a term agreement is usually a set price. But in this day and age, how can any company foresee its costs a few years ahead?

There are several options available to ground handlers, including agreeing to renegotiate if governmental compliance costs grow unexpectedly (something insisted on by US handlers when national health care was first discussed); or where parties could agree to renegotiate if airline frequency changes by more than a certain percentage. A common provision allows negotiations for increases or decreases in prices if flights increase or decrease more than by five percent. If agreement is not reached, the parties seeking the change in price can terminate the agreement, even if term remains. This works when a carrier’s growth is restricted through gate limitations or other restraints on growth. However, with mergers, rationalisation by gate exchange and other unforeseen changes in airline operations, lately no-one has been able foresee when a carrier will need additional services over and above (or greatly less) than what was negotiated at the time the contract was signed.

While negotiating such provisions seems simple enough, in reality often the carrier and the ground hander are not in an even negotiating position – especially if the ground handler is already handling the carrier and is concerned that losing the airline will create a gap in work for its staff between flights. Rather than leave it to carriers and ground handlers to negotiate changes in contracts in the event of alterations to operations, I am suggesting that carriers and handlers commence discussions about future changes in the SGHA, which can ensure fair and equitable price changes in term agreements based on actual costs, size of operations, governmental impositions and changes in circumstances.

Let’s be honest: handling prices are not rocket science. Prices are set by calculating a ground handler’s fixed and variable costs, plus a set profit. Neither the airline nor the ground handler benefit when prices are set too low or too high. Accurate pricing ensures that ground handlers have sufficient revenue to ensure that each and every employee is well trained, can utilise all necessary and appropriate safety equipment, that ground support equipment is well maintained and that both carrier and ground handler benefit.

I understand that carriers base their fares on budgets. However, budgets should be based on real costs during the budget period. Even if a carrier benefits from a low price during one budget period, it is likely that it will be at a disadvantage during the following budget period when the ground handler seeks to offset its losses by higher prices. If a ground handler is stuck in a long term contract, won’t it have to make up for any prior losses by increasing prices in future contracts?

So how does the industry handle long term contracts yet at the same time allow some flexibility for changed circumstances? What I suggest is the addition of a new standard provision, such as the following.

“In the event that there is an unforeseen material change in flight schedules or in the amount of flights at any airport, or if the Handling Company’s expenses increase materially due to unforeseen circumstances, then the Handling Company may request that Carrier negotiate changes in fees in good faith based on objective criteria. If the parties are unable to reach agreement within sixty (60) days of notice seeking negotiation by the Handling Company to the Carrier, the Handling Company may give Carrier sixty (60) days’ notice of termination of the Agreement. If, during the notice period, the Carrier agrees to the Handling Company’s price increase, the Handling Company shall continue to perform the Services notwithstanding the notice of termination”.

Of course there can be other provisions, different wording and other criteria. They key is to find a flexible means of providing for long term contracts, with the possibility of changes in pricing in the event of unforeseen or changed circumstances.