Turn Covid-19 into a Money-Saving Opportunity

Updated: Sep 22



COVID-19 has brought Aviation to its knees! Most aviation companies scramble to meet changing needs such as:

  • Protecting their cash flow

  • Loading Cargo in the Cabin as passenger traffic drops and cargo e-commerce increases

  • Returning to operations

  • Managing Physical distancing

  • Aircraft disinfection

Whether or not you are experiencing these exact challenges now or in the future, there is an opportunity to save money and grow profits.  


Over the past decades, my engagement with lawyers, airlines, loss adjustors, risk managers and brokers resulted in generating sizable savings to the organizations and avoid litigation.

I remember when I did some work for a large Finnish airline, who faced repetitive aircraft ground damage costs.  Within a half-day observation, the recommendations I made saved the company more than $1M.


The reason many companies I worked with fail in their approach is because of:

  • A lack of competence,

  • Management systems are not in place,

  • An analytical approach is not being used or

  • Some critical elements are not understood, which prevent them from achieving their strategic goals

The industry is changing faster than ever and investing Millions of Dollars in Ground Service Agreements over extended periods requires a Strategic, Tactical and Operational understanding of the SGHA & SLA.  



This approach works. As an example, Astra Aviation saved $70K after a 1-day review of Annex B’s that were under dispute.  Astra Aviation saved considerable additional revenue as a result of having gone through the SGHA contract advisory service with us.

In this webinar I will emphasize through specific examples, how to:


  • Avoid Contract and SLA Scope creep

  • Leverage from COVID 19 to Increase revenue through new types of services

  • Eliminate risks of unnecessary costs for injuries, ground damage & litigation


Do any of you face or have faced in the past Contract scope creep?

  1. STRATEGIC

  • Airlines require trained staff to be available once the restart of operations takes place.  A key question is How will the companies face the challenge to keep staff on the payroll without generating revenue

  • Is a BCP in place and does it contain the level of detail required to follow a realistic plan

2. TACTICAL 

  • Once staff is furlowed, laid off or possibly terminated, how will the companies deal with ramping up their operations

  • How will the staff, who may have been away from this position and function for an extended period be retrained as required under IATA recommendations in AHM1110

  • With the companies facing the this dilemma how will the conventional training be conducted for all the staff, when the capacity of the training room may be cut in half


3. OPERATIONAL

  • With staff back at work, all the protocols for COVID 19 will change processes.  Airlines will expect the same level of service as pre COVID 19 except the conditions at the airport check in, boarding gate, arrival, passenger bus or gate will all require specific oversight to ensure compliance to local regulations and airline requirements, which may differ from one to the other

This is where the companies may find themselves overstretched, may be asked to provide additional personnel to deal with changing needs and procedures and because so much remains unclear or unknown in the future development and ramp up timings etc., companies may not have had the time to review and optimize process flows, procedures and instruct all the staff accordingly and in due time




Have any of you changed their business model by loading cargo in the cabin as a new type of services:


Loading cargo in PAX cabins

  • Increased revenue for both airline and GSP comes at a cost. 

  1. STRATEGIC

  • Negotiating rates for the work to be done is not the only thing to consider.  

  • Number of people required

2. TACTICAL 

  • Different machinery and equipment may be required and deployed. Is the equipment available and suitable for the activity

3. OPERATIONAL 

  • How many people does this require

  • Are they trained to conduct this activity

  • How will the companies protect them from injury as they load tons of bulk cargo manually

Aircraft disinfection

  1. STRATEGIC

  • Negotiating rates for the work to be done is not the only thing to consider.  Before quoting rates, numerous points must be identified and studied in detail to avoid creating a service, which may not have an ROI

  • Is the company experienced in this specialized activity

  • Would the company be better off to sub-contract the work to a specialized service provider


2. TACTICAL 

  • What are the legal requirements as directed by the OHS, CDCs, CAAs or other regulatory bodies

  • What methods will the companies require and use to disinfect the aircraft, fogging, spraying, wiping...

  • What equipment may be required and deployed. Is the equipment available and suitable for the activity

  • How will staff be trained to deliver the service

  • How many aircrafts are likely to be disinfected


3. OPERATIONAL

  • Based on the method to be used, what equipment is required

  • Where and how will the work crews be trained, given some of this work must be conducted under M&E guidance or supervision

  • How many people will be required

  • What PPE is required and how will it be sourced, used and disposed of


Would your company be interested in Eliminating risks of unnecessary costs for injuries, ground damage & litigation


Congestion  on the airside due to numerous parked aircraft

  1. STRATEGIC

  • As airlines park their aircraft for extended periods it is not just a question of the high costs this generates.  Returning them to service requires aircraft ground movement is a very congested environment

  • Airlines should ensure that the AAs have verified the 75 page document of suggestions issued by ACI as to the numerous steps that must be taken to avoid major problems both with infrastructure and equipment

2. TACTICAL

  • Staff training is a prime consideration.  Unlimited liability may be triggered in spite of the Max liability limit of $1.5M, in the event a company is found not to have kept training current for example

  • GSE used may have been suspended from operations and its maintenance program may have also been suspended until the return to operations

  • Has due diligence been done by companies returning equipment to operations and is a plan in place to ensure its serviceabily

3. OPERATIONAL

  • Staff operational procedures are likely to vary as aircraft may have been parked in unconventional patterns and with reduced minimum wing-tip separations.  Are the procedures up-to-date and do they contain key elements to prevent aircraft ground damage in special conditions



If you would like more information, please get in touch with us through our Regional Affiliates or directly to schedule an Advisory call and, or register for a Master Class webinar.

Master Class, AGREEMENTS, SAVE MONEY, GENERATE REVENUE & MITIGATE RISK

“the main themes learners will go through are…How to:”

  • Identify Strategies for new services your company can use to generate revenue as a result of COVID-19

  • Avoid costly Tactical pitfalls and misunderstandings through well-structured and defined agreements

  • Engage in realistic Operational practices that enhance your business and nurture client relationships

“the big picture I want to promote through this course is…” 

How to avoid unnecessary costs linked to liability, risk exposure and loss of revenue, a Strategic, Tactical and Operational understanding of the SGHA & SLAs is a must!   Join me and..:

  • Sharpen your Competitive Edge

  • Control your Costs and 

  • Boost revenue!


About the Trainer, Speaker and Author:



Maurizio Anichini


He is an aviation leader with more than 40 years experience with airlines, GSPs, Airport Authorities and IATA.


He trained over 3,500 senior executives from across the industry over the past 15 years


Most of whom were surprised to learn so much about the SGHA in a condensed format


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Visit

10 Anson Road # 27-15

International Plaza Singapore 079903 

Call

T: + 65 - 6524-4973

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