Updated: Sep 22, 2020
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
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?
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
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
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.
Negotiating rates for the work to be done is not the only thing to consider.
Number of people required
Different machinery and equipment may be required and deployed. Is the equipment available and suitable for the activity
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
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
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
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
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
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
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
About the Trainer, Speaker and Author:
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