GROUND HANDLING AT AIRPORTS
From an average of sixand-
a-half days in 1972
to six days in 2006, it is
evident that not much
has been done to improve the
time taken for air cargo shipment.
Cargo being treated as
the poorer cousin of the airlines'
passenger business has
not helped the cause either.
Losses for both airline cargo
and passenger business have
been recorded to the tune of
$6.1 billion in 2008. To add to
the woes, negative trend in
2009 has drastically reduced
the amount of air freight being
carried around (from 14 per
cent drop after 9/11 to about
22.6 per cent recorded last
December 2008).
However, that does not stop customers
from demanding more efficient
air freight customer service
which is quicker, cost-efficient,
secure, and reliable.
Apart from the slowing trade
prospects, there are other challenges
that hamper the growth of
the air freight industry:
- Increasing concerns over deficiencies
in safety and security
systems.
- Inefficient administrative and
communication systems.
- Chaos and congestion due to
multiple ground handling agencies
with no standardisation.
- Environmental challenges that
result in consumers purchasing
locally grown produce, leading
to a reduction in air cargo
- Poor airport infrastructure-lack
of adequate airspace and slots.
- High jet fuel prices that have
given rise to an alternative
mode of cargo shipping-via the
ocean route.
Scaling up ground staff, systems,
processes and terminals,
integrating disparate systems
and improving transparency in
the international freight market
is crucial to minimise losses,
errors in manual operations and
overheads that arise from their
own shortcomings.
e-freight: sign of the times
From checking-in to baggage and
cargo handling, the entire process
of ground handling at airports is
evolving. And for the better!
For instance, IATA's e-freight
policy is aimed at a paperless air
cargo system. The industry stakeholders
(carriers, freight forwarders,
ground handlers, shippers
and customs authorities)
would derive benefits such as:
- Cost effectiveness-savings to
the tune of nearly $4.9 billion
every year.
- Speedy service-further reduction
in shipment time from six
days to five days.
- Increased reliability of systems,
accuracy of information
and use of robust technologies;
for example, just onetime
entry of electronic data at
the point of origin.
- Enhanced visibility in
processes and documentation-
facilitates tracking and
tracing of goods.
Thus, the shift to e-freight is
not just about a paperless system.
It is about increasing visibility
of goods across the entire
supply chain and thus expediting
the shipments.
In light of these developments
within the aviation industry, the
criticality of an integrated
ground handling system that
manages the disparate roles,
processes and functionalities in
the airport of tomorrow cannot
be underestimated.
The way forward
With mounting competitive pressures,
lower profit margins and
spiralling credit crunches in this
weak economy, there is thus a
pressing need for airports and carriers
to migrate from legacy operations
and systems to next generation,
technologically rich systems
that enable seamless communication
between various stakeholders.
From government authorities,
carriers, freight forwarders, to customs
and ground staff.
This would help minimise air
shipment time, human errors,
paperwork, flight delays and baggage
losses, all resolving to meet
customer expectations.
For example, Swissport Cargo
Services has seen positive outcomes
with the use of technology,
50 per cent reduction in waiting
times for trucks delivering cargo,
increase in productivity from 350
kg/hour to 500 kg/hour, visually
enhanced workplace, warehouses
for maximum utilisation of
space, and much more.
There's no denying the efforts
made by all three parties to meet
these challenges-airport authorities,
airlines and solution
providers such as Kale-that
endeavour to ensure a smooth and
hassle-free future for ground handling
of air cargo.
Have a safe flight!
Airport tech bites- Kuala Lumpur International Airport upgraded its network infrastructure
in 2006 to become the world's first airport to offer free
Wi-Fi to passengers, operators and other stakeholders. Passenger
and cargo-handling capacity were greatly improved as a
result of this investment, which integrated the entire airport.
Deploying RFID tags is also on the anvil.
- Another case in point is the Delhi International Airport which
implemented an ERP system that will enable them to handle air
traffic of over 100 million passengers compared to the current
20 million passengers.
- Technology also aids in cost saving, something undeniably critical
for the global aviation industry in these turbulent times. IATA
is following up a successful implementation of 100 percent eticketing
with a goal to imbed all boarding passes with 2-D barcodes
by 2010. IATA officials anticipate that this will save the
global industry $1.5 billion annually.
- Says V.S. Bobba, Managing Director of Menzies-Bobba Aviation,
the ground-handling agency at the new international airport at
Shamshabad near Hyderabad, "Though these (ground handling)
services go unnoticed, they are very vital to any airport.
Now that they are privatised, the agency will have to provide
world class services at any cost."