Hi-tech solutions

IT-UPDATE

Once the preserve of the backroom boffin, today IT is eagerly embraced by a sector anxious to prove its cutting edge.

IT: these days airports, airlines and handlers couldn’t exist without the technology that has come to typify modern life. So, if IT has been the saviour of the industry, what exactly have been its benefits? We look here at a couple of the biggest exponents of IT to see exactly how they have helped to shape the sector.

 

Amadeus, as a brand, needs little introduction: globally respected and a company that has made its mark through cutting edge technology, it has brought aid to many enterprises within the air transport industry.

Most recently, it started working closely with Southwest Airlines with a view to introducing its Altéa reservations solution to support the carrier’s international service. The upshot of this will see the implementation of Amadeus’ technology that will allow Southwest to operate international flights in 2014. AirTran Airways, which is a wholly-owned subsidiary of Southwest, currently serves international destinations and so as AirTran international flights make the transition to Southwest, so Amadeus will support Southwest’s international schedules.

The largest airline in the US by domestic passengers, Southwest coincidentally is also the first low cost carrier to have adopted such a sophisticated IT system for managing its operations and sales.

Gary Kelly, Southwest’s Chairman, President and Chief Executive Officer, recently gave an interview in which he spoke, inter alia, about the coming transition. He said that since 2011 Southwest had made significant progress integrating AirTran.

“We’ve consolidated the AirTran headquarters function into Dallas. We’ve implemented all new aircraft maintenance management technology. We have implemented technology to support multiple fleet types. We’ve, of course, received our single operating certificate from the FAA. We have also, since then, launched conversion lines to move AirTran 737s into the Southwest Airlines livery: that work is underway. We plan to get 11 airplanes converted here in 2012. We made significant changes to AirTran’s revenue management processes and significant changes to AirTran’s flight schedule, including the redeployment of aircraft to new markets – hopefully more lucrative international markets.

“Related to all that, we’ve spent months working on the best international solution for Southwest Airlines.”

Southwest’s technology is all domestic and the announcement that Amadeus had been selected as its reservations technology solution was probably no great surprise.

“It also sets the stage for us to move all of our reservations, the domestic reservations that is, to Amadeus if we choose to. Along those same lines, we see a significant opportunity to serve Houston with international flights out of Houston’s Hobby airport. We have a major campaign underway to obtain the necessary approvals to launch that service in 2015, which is what the Houston airport service would like.”

Gary Kelly went on to mention that Southwest had, in fact, five strategic initiatives lined up, initiatives that would be introduced over a period of time. The Rapid Rewards program and the B737-800 are already underway: the other three comprise the Air Tran integration, fleet modernization and the reservations system replacement.

Gary Kelly was cautious about naming a date for the roll-out of the cross-selling function, saying that it might be a case of codesharing later rather than sooner.

“We have 11 aircraft that we are converting in 2012, and that will have minimal impact to the AirTran network. We will be converting roughly 60-odd aircraft next year, so that’s where we’ll really need the facilitation, if you will, of the codesharing to make that conversion from an AirTran market more rapidly to a Southwest market.”

On the topic of the cutover to the new reservations system, Gary Kelly admitted that it was difficult to predict exactly the outcome in a changing marketplace.

“We’re going to be going through a lot of effort with Amadeus to implement this module, if you want to think about it that way. And if it works well for us, we’ll obviously take a very hard look at domestic (routes). Why go to all this trouble to work with Amadeus with the thought that you’re not going to continue to do business with them in a broader way? So we’re going to – we’re positioned where we can take advantage of that, and if things go well, then, perhaps, that’ll be our decision.”

Would the new system be working side by side the old – or would the two integrate?

“One way or the other, it has to be integrated with the rest of our systems. But I think it’s safe to say that this piece will probably be set aside from our domestic reservation system.”

However, it was stated that there would be a period of time during which Navitaire, which is the AirTran system, and Sabre, the current RES platform and Amadeus, which will be the international platform, are all talking to each other. All that is contemplated within the plan. In the fullness of time there would be just one system running, confirmed Gary Kelly.

The Amadeus Altéa initiative for Southwest Airlines will be implemented in a phased approach: the first phase of the project will see Amadeus support Southwest’s reservations for its international business, which includes implementation of the Reservation and Inventory components of the Altéa solution (domestic reservations will remain on the current Southwest Airlines platform during this phase of implementation). Phase 1 implementation is scheduled to begin in early 2013. Phase 2, should it be activated, will see Southwest Airlines add the Altéa DCS – Customer Management solution for its international operations only. Phase 3 of the contract will mean that in addition to international flights, Amadeus Altéa will support all of Southwest’s domestic business using the three core components of the Altéa platform (Reservations, Inventory and Departure Control Customer Management).

Southwest’s current IT system is not capable of handling international flights, and so the Altéa system will help to support the airline’s international growth strategy. The Altéa IT system will also allow Southwest to interline and codeshare on its international flights, as well as provide a more personalized customer service. This deal is significant for Amadeus because it concretely demonstrates the suitability of Altéa for supporting low cost carrier sales and operations as well as major network carriers.

 

 

Rostering and planning solutions

Back in November 2004, Swissport USA started a project that was designed to significantly improve the resource planning processes at its domestic stations. Up to that time, its various stations had been using internally designed Gantt charts for planning on Excel. In order to improve the efficiency of the planning process, Swissport USA’s initial project involved the implementation of GS Planning.

The idea was to have one person (namely Dorian Mehrotra, Director Centralized Resource Competency Center at Swissport International USA) in the corporate home office using GS Planning to collect flight data, schedules and shifts from the different stations and generating the best possible daily shift demand, which the respective station then used as the basis to manually create an Excel-based

roster.

The pilot station chosen was Miami and subsequently the system was rolled out to Los Angeles. Shortly after this, Swissport’s project team determined that the end result that the stations really needed was not just a Gantt chart with the total daily shift demand but an actual shift schedule. At that point Swissport decided to implement GS Rostering. Los Angeles became the first station that went into production with both systems.

Two years on, Swissport USA’s management came up with the vision of a centralized department located in the corporate home office that would serve the planning and scheduling needs of the various stations. A team of five staff was hired for this purpose.

After receiving GS Planning and GS Rostering training, the team started generating weekly schedules for Swissport’s stations at Washington Dulles International, Chicago O’Hare and John F Kennedy International in the East region; Miami airport in the South; and Los Angeles and San Francisco airports in the West. The success of the initiative most recently led to the addition of Toronto and Vancouver airports in Canada as well. The core planning/rostering team was complemented by the operational staff at each of the stations who, after receiving end-user training, were enabled to deploy the centrally-produced strategic and tactical plans and rosters into the “day-of-operation” environment.

An additional three people were employed for the core team. This has meant that now a team of eight staff take care of planning and scheduling the staff in terms of all ramp-related functions (such as loading, unloading, bag room and cleaning tasks) for eight Swissport US and Canadian stations.

When asked about the additional benefits and the flexibility of GroundStar, Swissport’s Project Manager, Dorian Mehrotra had this to say: “We use GS Planning to generate the GSE requirements as well. Also, and very importantly, we can very easily add and delete flights and re-plan if, for example, we are trying to bid for a new customer.” He adds: “The overall concept has been such a success that Swissport is now looking at the idea of the centralized planning center, the so-called Centralized Resource Competency Center, at other areas in our international network.”

Based on the success of the project in North America, Swissport Americas went on to implement GS RealTime for its large operation in Brazil during the course of 2010.

Things had progressed further by the end of 2011: by that date, the Centralized Resource Competency Center for Swissport Americas had successfully implemented GS RealTime at its two largest Canadian stations, namely Toronto and Vancouver. The same was launched in JFK during the month of June and at the time of writing Swissport is looking at a further roll-out of GS RealTime around the rest of the US stations.

Furthermore, it is now reviewing the introduction of GS RealTime in Brazil at some point during 2012.

 

Electronic recording facility

The sheer size of North America, and the number of airports it contains, presents both opportunities and challenges to ground handlers. With many operators having a presence at many airports across the region, covering everything from small regional stations to the largest international hubs and a cross section of domestic and international carriers, IT has a crucial rôle to play in ensuring operational efficiency.

Ground handlers working on this scale generate huge amounts of information to be collated and presented to the operation on the day, which are then further gathered and shipped to the corporate office for onward billing, business intelligence and management reporting. Traditionally, much of this has been a costly, manually intensive paper based process. Replacing and enhancing this with the right automated systems has a hugely positive impact, streamlining procedures and ensuring rapid, effective distribution of information.

Several of Damarel’s customers in the region have wholeheartedly embraced this approach and consequently reaped the rewards it brings. By delivering standardized operational systems to all stations, they have adopted a simplified IT strategy that provides immediate access to performance and financial information across the entire network.

One of the keys to a successful operation is accurate and timely information, ensuring that all departments are kept up to date and ready to meet any potential challenges. Equally, the recording and tracking of all activities to ensure accurate and timely billing is crucial to maintaining a steady cashflow.

“Before the introduction of the FiNDnet Suite, stations were working with what they could get locally, which often meant disparate information sources, such as the airport’s FIDS and telex messages: information was patchy and required manual collation and distribution,” says Paul Bruton, Damarel’s Consultant Sales & Marketing.

It is no exaggeration to say that the introduction of the FiNDnet Operational Database to stations has revolutionized the operational environment by providing a central source of real time information, collated automatically from a number of diverse sources. Real operational awareness has been delivered to all areas, from the Operations Control Centre through to the Crew Room.

With feeds from systems such as the Type-B networks, ATC and in some areas the airlines’ own systems, information is now both timely and accurate, allowing handling teams to focus on and improve service. With an automatic electronic record of all flight activity, this can now simply be made available to the corporate office, removing the historical overheads of preparing and sending these details.

Of course, there is also the supplementary question of establishing and recording all the ancillary services. Historically, for many organizations this involved a great deal of paper, which then required local collation, followed by despatch to the corporate office and a central administration to process it all.

This is where FiNDnet Services comes in. The tool allows handlers to record the services electronically as they happen, either from a PC workstation or mobile device. The immediate electronic capture of all the service details has removed downstream processing overheads and, in some cases, reduced mailing costs by thousands of dollars a month.

That covered the needs at the station’s operational level, but what about the corporate office? The administration of the billing process has traditionally been heavily manual, involving the movement of large quantities of paperwork cross-country to be processed by the central billing section. Further processes were subsequently involved in preparing the invoices for mailing out to customers.

Here, the FiNDnet Automated Billing module has had a huge impact. As the name suggests, this is an automated tool. It receives the operational details from stations electronically, generating the invoices within a matter of minutes and handing off financial details to corporate accounts, all with minimal manual intervention. The tool has allowed clients to reduce significantly the time it takes to get the invoices out, thereby improving revenue flow whilst also significantly cutting the staffing overheads required.

The delivery of the invoices to customers has also improved appreciably with the move from old-style envelopes and postage to full electronic invoicing. The invoices are sent to customers via their preferred medium, whether that is a standard industry eInvoice provider, e-mail attachment or access via a corporate Web portal. As a result, costs are further reduced and speed of payment is improved.

However, it doesn’t end there. FiNDnet Automated Billing, with its seamless automation, provides revenue visibility on a daily basis, allowing cumulative revenues to be monitored against budgets, enabling pre-emptive action to be taken where necessary without having to wait for manual invoices to be produced the end of the month.

Overall, the FiNDnet Suite has allowed Damarel’s clients to achieve significant savings across their business, streamlining many workflows and improving revenue collection, while allowing them to provide better customer service. Damarel looks back on five years’ experience of providing IT solutions to the US and recently implmented the above solution for a major handler there.

 

Rolling, rolling, rolling…

Innovative-GSE

The story behind a story of our time: the HeliRoll.

 

A quarter of a century ago, the FMC Airline Equipment Division (now known as JBT AeroTech GSE) introduced a revolutionary product that would become one of the greatest success stories in the history of airline ground support equipment. The newly released Commander loader, with its modern, clean looking appearance introduced many new enhancements never seen on cargo loaders, including a swing-out power module, extendable operator cab, powered bridge wings – and something dubbed the HeliRoll conveying system. Looking back, of all of the enhancements, arguably the HeliRoll application had the greatest impact and it helped make the Commander the biggest selling cargo loader around the world.

The HeliRoll conveyor system evolved as the result of customer input that demanded a more reliable and efficient method to move containers and pallets on cargo loaders. Up until 1986, most loaders used rubber belts, rubber wheels and cylinder rollers to convey their loads. For the operators, the current loader conveying systems were slow and laborious and it was not uncommon for containers to be manually jostled on the bridge because of the lack of side shifting features. Maintenance on these systems was costly because the rubber belting would suffer cuts from damaged containers and conveying-lifting systems (which were used to side-shift on the rear platform) becoming damaged through the ingress of foreign matter.

 

Augurs the answer?

FMC duly formed a cross-functional team, comprising staff from its engineering, sales, field service, purchasing and manufacturing sections, to come up with a new loader to replace the JC/PL-2. One of the key areas that they focused on was how material in other industries was conveyed. The idea of HeliRoll conveying came about after one of the team members described an augur system that they had employed whilst growing up on a farm. The augur idea was transformed into a crude model, which showed a lot of promise during testing.

Tests with the early model revealed was that it was possible to convey product on a flat surface without the use of lifting mechanisms extending and retracting when the need arose to change the product’s direction. The next task was to identify, or design, components that effectively and efficiently conveyed product. Several items were looked at, including an array of omni-rollers and powered wheels. None of these, though, was effective in performing the required functions of container side-shifting and rotation, two key elements in conveying efficiency. The FMC team came to the conclusion that an optimal system was not available – and that it would be up to them to come up with the solution.

 

Birth of the legend

What the FMC team came up with was the HeliRoll, a unique wheel cluster, or cluster hub, with six freely rotating rollers, positioned at a 45º angle around the hub’s perimeter. When rotated on a shaft, the HeliRoll exerts a force at an angle of 45º to the axis of the shaft. The HeliRoller clusters are either right handed or left handed and work in unison or against each other to move the loads. For example, when conveying a straight load, the HeliRoll clusters move in the same direction, but when side shifting, they work against each other. For rotation, the HeliRoll clusters are mounted in a specific area that allows four opposing forces to create a circular motion. All conveying operations are performed on a single plane, without the need to extend or retract other components. The HeliRoll base and rollers were constructed of aluminum for long life, to be free of rust and to minimize the wear on containers and pallets.

For the end user, the operator, the system was very simple. The loader was divided into three segments, rear-rear platform, front-rear platform and bridge. One joystick in each segment conveyed the load forwards, backwards and sideways. A rotation switch allowed the load on the rear platform to turn. The conveyor system was augmented by cylinder rollers in areas where side-shifting was not necessary. The final outcome was a conveyor system that was fast, easy to control, totally alive and with no dead spots, thereby eliminating the jostling of containers by the operators. JBT declares that the totally live deck is essential when conveying pallets and containers that may have warped or damaged bottoms.

FMC engineers worked with Commander customers in the field, in order to find ways to enhance the Commander’s revolutionary conveying system. In 1990, after extensive field and laboratory testing, the HeliRoll’s rollers were redesigned with new bushings and a curvature design that optimized the movement of the load when it came into contact with the ULD’s surface. With the improved design, the HeliRoll conveyor system has shown itself to be 100% reliable in the worst environmental conditions.

 

Gilding the lily

Enhancements were also made for maintenance of the conveyor system. The drive chains now have simple adjusters that can be easily accessed and tightened. In the past, when a HeliRoll needed replacement, the platform deck and shaft had to be removed. Today, when replacing a HeliRoll, the damaged cluster is simply cut off and replaced with a two-piece field kit. This task can be performed in less than one hour from under the raised platform with no need to remove the deck plate or shaft.

Dependability is another key element in the design of the system. Should a HeliRoll cluster become damaged, the system keeps on working, without any interruption to the operation. In fact, depending on the location, several clusters could actually be damaged and the system will still operate, with a minimal loss in efficiency.

This conveying system is not just limited to cargo loaders, though. JBT AeroTech has been very successful in selling HeliRoll transfer decks to air cargo facilities around the world. The transfer decks are integrated with the air cargo facilities’ handling systems at transition points and loading areas, or anywhere where the loads must side-shift or rotate. All JBT AeroTech transfer decks require very little maintenance and do not require any embedding into the warehouse floor surface to accommodate mechanical lifting mechanisms.

Other JBT AeroTech products utilizing the HeliRoll include the CLT-8 loader/transporter for side-shifting on the front platform and optional rear container rotation. Moreover, HeliRolls enable the CPT-7ST transporter to efficiently side load, as well as end load and front load ULD containers and pallets.

The popularity and success of the HeliRoll can be measured by the success of the Commander family of loaders, which comprises four models capable of moving loads ranging from 7 tonnes (15,500 pounds) up to 30 tonnes (66,000 pounds). To date, over 5,300 Commanders have been sold worldwide, making it the most popular cargo loader every built. Without doubt the HeliRoll has been a key element that has enabled the Commander to provide a lower cost of total ownership.

In all, JBT AeroTech estimates that over 1.4m HeliRolls have been installed in Commander CLT-8s, CPT-7STs and transfer decks since 1987. That’s a staggering total. Moreover, to date, approximately 56,000 HeliRolls have been sold through JBT AeroTech’s spare parts sales. On that basis, approximately 96% of all the HeliRolls installed are still in use today. In fact, many of the Commander loaders that have been rebuilt actually returned to service with their original HeliRolls intact.

In summary, it is fair to say that JBT AeroTech’s novel system has played a major rôle in the success of the Commander family of loaders and transfer decks. It has eliminated the dead spots on the conveying surface and has given the operator complete control of the load at all times. HeliRolls have proven to be durable and to require little maintenance. Over the years, there have been several attempts by competitors to duplicate this conveyor system, but so far, none has succeeded.

That fact alone says it all.

 

From Aces to Avianca

INDUSTRY-INTERVIEW

Ten years on, Jose Manuel Guzman, Sales & Marketing Manager at Avianca Services, unfolds the story of this Latin American handling enterprise.

In the beginning, there were two aviation companies: Aerolíneas Centrales de Colombia (Aces) and Avianca Airlines. When, in 2002, par merged, it was clear that duplicate ground handling teams were not required. Each airline had its own handling division so logic dictated a centralized ground handling function. A working team of seven Avianca executives led the start up of a Business Unit called Avianca Services, which implemented a business model focused on satisfying other airline customers in the ground handling market in Colombia. They pooled resources with the aim of delivering a consistent service. Early customers included Delta, Mexicana, Copa, Taca, Cubana and Iberia.

Jose takes up the story:

“Since 2002, Avianca Services has seen a sustainable growth, supported by its very active commercial and customer services focus, and has tried to over-deliver in terms of market expectations. Our aim has been to stand out as an excellent independent airline ground handler. Illustrating growth is easy by comparing the number of staff and revenues from other airlines customers from 2002 to 2012. Back in 2002 we had around 120 people and revenues of US$1m; this year the staff number 290 and revenues are forecast to be around US$10m.”

The figures, then, speak for themselves. Avianca is able to supply virtually the whole range of ground services, ranging from passenger services and ramp handling to operational dispatch: in a typical year, more than 16,000 flights are catered for. It almost goes without saying that the handler has enlarged its operation and increased its market share. As Jose notes, “comparing 2011 and 2012, we have experienced a sales increase of nearly 7%.”

 

A changing canvas

He is aware, though, of the changing face of the industry sector.

“There are major competitors coming to the region,” he says, “and this requires Avianca Services to strengthen its expertise in the provision of services with both warmth and kindness, and continue its research in technology and improvements that contribute to the optimization of time and results for our customers.

“We think that we are facing two main challenges at present: these are the airport facilities in Colombia and our competitors’ business practices. In this latter area, we are seeing, for example, lower prices, which do not always translate into the best service levels. As for airports, the airport facilities across Colombia are being restructured and rebuilt but not at an adequate pace, which in many ways is having a negative impact on our operations. On the other hand, some of our competitors are offering low fares, based on some legal, but not quite orthodox, methods that they have arranged with their employees, which puts them in a better position when it comes the matter of costs.”

Jose reveals that his operation has been pro-active in terms of making the handling operation as green as possible and the reduction of the company’s carbon footprint has been a priority.

“Environmental issues are a must and are a very significant factor for us. We are currently using electric-powered GSE, such as conveyor belts and tow tractors. We are now trying to migrate all our GSE fleet to electric-powered units, endorsing our environmental responsibility whilst trying to counter the high cost of fuel. In short, we are moving towards a greener ramp.”

All of Avianca’s employees are currently receiving a representative part of their Avianca Services Training through AVANCEMOS, which is an on-line training site belonging to Avianca. This, he declares, has made a great impact on his staff. There has been a decrease in the time spent in formal training with a concomitant better training coverage for the employees.

 

GSE and its importance

“On the other side of the coin, Avianca Services has implemented a yearly renewal program for its GSE. This assists our labor force and ensures that the ground handling service provided to our clients comprises state-of-the-art equipment.

“It is also worth mentioning something about the human resources policies adopted by Avianca Services, which have a very positive effect on our employees insofar as their motivation and health levels are concerned. Of course, this is reflected in the good work, low turnover and the service level commitment we provide to our airline customers. In summary, each of our employees has the benefits of being an airline employee.”

In closing, we asked Jose for a tip or two for anyone reading this who might be thinking of breaking into the ground handling sector. What, in his view, were the key requirements of making an operation work satisfactorily?

“Be responsible with your employees,” says Jose, “and with your clients and with your equipment. All of these require maintenance of some sort to keep you on the right track. A good operation consists of a smooth combination of people, equipment, tools – and heart.”

Main News September 14 2012

 

Latest Sky Club open for business

Delta Air Lines has opened a new Sky Club in Terminal C at New York’s LaGuardia airport: this takes the carrier’s total to 54 in its network.
The latest club is actually Delta’s third at LaGuardia. Around 7,600 square feet in size, it incorporates a wall of glazing which overlooks the runway. Amenities include a full service bar, providing complimentary beverages and snacks throughout the day, as well as Delta’s Luxury Bar program. The décor includes aerial landscapes of the region.
In addition to opening the new club in Terminal C, Delta is shortly due to enlarge and renovate LaGuardia’s Terminal D South Sky Club. This should be completed by next spring, and will comprise over 10,000 square feet of facilities in all.

 

 

Bad news at American Airlines

The latest cuts to affect the Chapter 11 protected airline concern some of its maintenance staff.American Airline executives have said that the company must lose 10,400 jobs as well as reduce its labor costs by US$1.06bn a year if it is to emerge from bankruptcy in good shape. Amongst other cost-saving measures, American’s latest proposals include the outsourcing of up to 35% of its aircraft maintenance function, which is currently executed in house. To that end, American has said that it will be closing its Dallas/Fort Worth maintenance base by the end of the year, which will entail laying off over 800 mechanics. It will subsequently consolidate its major aircraft maintenance operations in Tulsa and at Dallas/Fort Worth International. More than 1,700 mechanics and sundry other workers at American’s three aircraft overhaul bases will be laid off in December and February, officials have revealed. Additional reductions of mechanics and related positions at the Tulsa maintenance base have not been ruled out.

 

 

Jazz in tune with its staff

Jazz Aviation has announced that its flight dispatchers, who are represented by the Canadian Air Line Dispatchers Association, have ratified a tentative agreement which was reached on August 31, 2012. The agreement will be in place for a six year period. CALDA represents approximately 67 flight dispatchers employed at Jazz.

Jolene Mahody, Chief Operating Officer of Jazz, congratulated the staff on reaching this milestone and expressed the hope that this agreement would strengthen the company’s profile within the aviation marketplace.

 

 

Aviation employment figures remain firm

US scheduled passenger airlines employed 1.4% more workers in June 2012 than they did in June 2011, according to a recent study from the US Department of Transportation’s Bureau of Transportation Statistics. This actually represents the nineteenth consecutive month that full-time equivalent employee (or FTE) levels for scheduled passenger carriers have been higher than the equivalent month of the previous year.

In June, an FTE total of 390,923 for scheduled passenger carriers equated to 5,540 more than the total for June 2011. This year-on-year growth rate, although down from the growth rates achieved during the last half of 2011, reveals that there has been a gradual increase in the sector’s employment in the wake of the declines that occurred back in mid-2008.

Interestingly, virtually all the low cost airline segment reported an increase in their FTEs. Frontier Airlines was the exception, reporting fewer FTEs. Southwest Airlines reported 46,128 FTEs in June 2012, in a joint report following its merger with AirTran Airways. The combined report was 1,729 more FTEs (or 3.9% more) than the 44,399 FTEs the two airlines reported separately in June 2011.

It was a case of mixed results amongst the regional carriers: out of the 15 regionals, six reported reduced employment levels, compared to 2011 figures.

 

Third lounge for Dallas airport

At Dallas/Fort Worth airport, the airport board’s concessions committee has approved a seven year lease with American Express to operate a VIP lounge. The decision has been met with disappointment by American Airlines, which runs the Admirals Club within the same terminal. In fact, there is also a third lounge available to travelers with time on their hands: this is called The Club, for which there is no membership requirement.

For American Express cardholders (and non-cardholders), access to the lounge is via a daily pass, which ranges in cost from US$40 to US$75.

 

Main News August 31 2012

Commuters to lose out?

Delta, the largest operator of 50-seat aircraft in the US, will be closing the hangar doors on Comair by October. Moreover, other carriers with subsidiaries, such as Pinnacle and AMR, have filed for Chapter 11 in the recent past. Faced with the cold wind of change blowing through the economic corridors, the big names have had to reassess their regional offshoots – and so cutting out certain regional routes to focus on those that are more lucrative becomes par for the course.

The 50-seater has become synonymous with the type of aircraft serving the smaller community, often one in a remote location. Making those remote routes pay, though, has become less and less easy for the big carriers. Delta, for instance, is clipping its fleet of 350 or so commuter jets by over 200 units over the coming years. And if Delta’s example is followed, would-be flyers are going to be facing longer drives to the nearest airport.

The big carriers are all citing the same reasons for the cut-backs. Budgetary restraints have put the brakes on new investment and the price of fuel continues to test the hedging experts. Allied to this is the reality of ageing aircraft: maintenance costs are on the rise and every extra aircraft in a fleet represents another cash drain on the already straitened coffers. The difficulty involved in making the small aircraft viable will, analysts believe, ultimately lead to drastically reduced numbers of these aircraft circulating in years to come.

 

Backscatter X-ray machines: transparent technology?

There has been growing concern over the country’s 250 or so X-ray scanners that rely on so-called backscatter technology. These machines utilize a narrowly focused beam of high-intensity radiation for scanning passengers. Whilst this beam moves quickly across the passenger, the potential threat posed by the technology is little understood, in part because it is a secret process. At least one professor has said that he believes the radiation dose to be up to 45 times as high as that disclosed by the TSA.

Currently, the use of these machines is banned in Europe, a fact that has been noted as significant by those who feel the technology requires more study. To that end Congressman Steve Israel has called upon the TSA to conduct a thorough investigation into the use of this particular type of X-ray machine.

 

 

Environmental pledge from United

United Airlines is to further strengthen its commitment to sustainability and the environment by joining the Sustainable Aviation Fuel Users Group. This is an industry working group whose objective is to accelerate the development and commercialization of aviation biofuels.

“We are excited to collaborate with other industry leaders in our shared quest to advance sustainable biofuels,” said Jimmy Samartzis, Managing Director of Global Environmental Affairs and Sustainability for United, in a statement. “We will all benefit from our collective work to find solutions to make alternative fuel available at commercial scale and secure a sustainable future for aviation.”

Overall, the group’s members represent around 32% of commercial aviation fuel demand.

 

 

Cheaper with CHEP

Air Canada has selected CHEP Aerospace Solutions to supply and manage its fleet of unit load devices.

CHEP Aerospace Solutions will be acquiring Air Canada’s existing fleet of ULDs (which numbers more than 8,000 airline containers and pallets) and will migrate them into its shared ULD fleet over time, taking CHEP’s total ULD pool to in excess of 53,000 items. Outsourcing its ULD management to CHEP will thus enable Air Canada to eliminate the administration element whilst reducing the cost of positioning, maintaining and managing its own ULD fleet.

Air Canada’s decision to outsource this critical operational activity to CHEP Aerospace Solutions comes in the wake of an in-depth, due diligence process on the capabilities and value of outsourcing. Key to Air Canada’s decision was CHEP’s extensive ground service support team and its global maintenance and repair network that covers 50 stations worldwide; as well, the synergies and cost savings available from sharing assets with other CHEP airline customers was deemed a significant factor.

Air Canada’s Vice President, Cargo, Lise-Marie Turpin, said that the decision to partner with CHEP Aerospace Solutions had come after a lengthy and detailed analysis conducted by the Air Canada team. The results of the analysis revealed that CHEP was the best provider to deliver the requisite cost-savings and efficiencies.

In turn, CHEP Aerospace Solutions’ President, Dr Ludwig Bertsch, added that he was proud to have Air Canada as a business partner.

 

 

Delta to cut subsidiary by end of year

Delta Air Lines has announced that it will be shutting down Regional Elite Airline Services. This is the subsidiary that performs ground handling and customer service for its regional carrier flights. The subsidiary musters about 4,000 employees around the US and its operations are likely to be taken over by the end of the year by other companies, including another subsidiary, that of Delta Global Services. Delta hopes to be able to provide job opportunities at the same locations for the vast majority of affected workers.

 

 

Main News August 17 2012

 

Getting smart with used cooking oil

AIRMALL USA, concessions developer and operator of the AIRMALL at Cleveland Hopkins airport, has formed a partnership with Bradford Airport Logistics. The venture will see the developer implement an environmentally-friendly solution that is aimed at recycling waste cooking oil from tenants in the airport’s concessions program.

To this end, Bradford has worked with AIRMALL to install a system of customized retrieval carts that collect the spent cooking oil from the fryers of food outlets at the airport. The collected grease is subsequently recycled to make environmentally friendly products, amongst which is the production of B-100 biofuel for vehicular usage.

 

Outsourcing or insourcing?

The wind of change, it seems, continues to blow down the economic corridors of the airline sector.

The latest carrier to look at changes to the status quo is United Airlines, which has announced that it is to outsource some of its cargo operations. Part of the reason for the change in operations stems from the ongoing merger with Continental: and a spokesperson has admitted that the initiative was in line with cutting cost and forging a more efficient operation.

Houston has been cited as one of the stations that will see the changes although others are also on the cards. The carrier has gone on to say that ramp cargo handling will still be performed in-house, however.

Whilst the number of affected workers has not been disclosed, it is known that United is still working with the union that represents cargo workers in order to relocate those involved or offer end of contract inducements. If all goes according to plan, the strategy should be effected by November this year. This isn’t the first time United has looked at its staff balance sheet, though: in all, since the merger got underway, some 15 stations have been involved in in-sourcing labor. Clearly, then, there is no one single solution here, for United is weighing up the situation on a station-by-station basis.

 

Big order for Florida manufacturer

JBT AeroTech has been awarded orders in excess of US$10m by a freighter airline, which the GSE specialist declined to name. This contract will see the manufacturer furnish cargo loaders, de-icing vehicles and pushback tractors. In addition to this it has undertaken to refurbish and upgrade the carrier’s existing cargo loaders. This new and refurbished GSE will in turn be used to support the airline in its global operations.

“We are pleased to continue supporting the cargo handling and ground support needs of the air freight industry,” commented John Lee, Vice President for JBT AeroTech Division. “This order represents the ongoing commitment of cargo air carriers to invest both in new products and in the upgrade of their GSE fleets to improve operating efficiency.”

According to JBT, delivery of the equipment is scheduled to be completed in the fourth quarter of this year.

 

Emissions policy hits a brick wall

A Senate panel has voted to prevent US airlines from paying fees to Europe for their fleet emissions. The vote effectively means that the Transportation Secretary now has authority to stop carriers participating in the much-debated EU Emissions Trading Scheme.

Predictably, the outcome was a disappointment to environmental groups who are keen to see the EU scheme adopted on a global basis. Calling the bill short-sighted, the international counsel at Environmental Defense Fund admitted that the result would set back any worldwide consensus, something that is badly needed to give the scheme full credibility. However, the US is not alone in its bullish stance: Russia, China and India have also long opposed the credits trading scheme, calling it unfair.

Readers will know that the European scheme issues permits to emit a certain amount of carbon dioxide; it then charges any airline which generates more than its share. EU officials have assured the airline sector that the cost overall will lead to a slight increase in ticket prices. Nonetheless, US carriers estimate that the initiative will cost them some US$3.1bn by 2020.

The International Civil Aviation Organization has yet to be approached directly on the matter although EU officials have been contacted with the aim of securing some sort of compromise.

The Golden Crown

From-the-Workshop

Tim Rane, JBT AeroTech’s Region Manager, North Europe, ME, Russia & Africa, brings a fable to the table – and talks safety.

He may not have been the first person in history to have a sudden flash of inspiration, but Archimedes is the man who made the word Eureka famous. It all started when King Hiero II grew skeptical about his new laurel leaf-shaped crown. The king wanted to know whether the crown was solid gold, or if some other metal had been added. It was up to Archimedes to figure this out, only there was one catch: he couldn’t destroy the crown.

It seems to me that the same conundrum exists in preventing aircraft damage. Most probably, no operator wakes up in the morning with a plan to hit an aircraft with their GSE; and most certainly, no GSE manufacturer plans to design their product with the intent of hitting an aircraft; and of course no airline buys its aircraft with “Kiss me quick, I’m looking for ramp rash” stickers emblazoned all over its livery.

Looking for solutions

Early last year I was called by David Roberts, Corporate Safety Manager, Aircraft Ground Damage, at British Airways. He asked us to participate, along with other GSE manufacturers and stakeholders, in a five-day working group which had one aim: to stop 3.5 tonne container loaders from hitting its A319-320 fleet at all BA’s stations. The team was assembled at 7am every morning for a full week airside, along with BA operators, maintenance providers, trainers, aircraft damage repairers and GSE manufacturers. We set to work to establish the root cause of failure. We looked at the GSE, its operating procedures, the units in operation, the new technology presently available for aircraft collision avoidance, the interface with the aircraft, the containers, the dollies and the way they repaired the aircraft damage. No stone was left unturned. But still we couldn’t replicate why operators hit the aircraft consistently in the same zone. But then, out of nowhere on day three, we observed an accident about to happen: it was our Eureka moment!

An AKH container was stuck, half in, half out of the rear hold of an A319. It was full of suitcases, and therefore too heavy to manhandle. The way the operator was trying to un-stick it was platform up and down, loader wheels turning left and right, and driving forwards and backwards. He was under time pressure so he was trying to do this simultaneously. The loader lurched forwards, almost putting the bed inside the hold.

Root cause of failure? It was clear that the interface alignment is critical for loading containers without them sticking on the A319, but nobody released how critical. We all profess to be excellent drivers, but if you were asked to park your car 40 times per day, five days per week in the same spot with a parallel positioning accuracy of plus or minus one inch, could you do it? I guess not. So why should we expect GSE operators to do so? Also, on inspection of every A319, the in-hold entry pallet drive motor was completely worn down to the bare metal. No wonder containers were getting locked between the load guides: they were unable to pull containers in, relying only on the loader pushing them in.

Corrective action:

Short term quick fix: Focused driver training on the importance of perfect alignment and paint a red stripe on the loader to help line up accurately with a red mark on their aircraft.

Medium term fix: Fit a load bed extension to the loader with a powered roller to move the loader drive station further away from the aircraft body and fit soft rubber buffers to the cab. Also, get aircraft maintenance to replace the in-hold pallet drive rubber wheel more regularly, before it gets worn down to bare metal.

Long term fix: Get Airbus to consider changing its in-plane container guide design on all new aircraft to a better container lead-in design, preventing container lock up and allowing less accuracy of the loader operator.

In summary, that Eureka moment has allowed BA to engineer out the chances of repeating this particular incident, but only by working together with Airbus, with their operators and with the GSE manufacturers to solve seemingly impossible problems. If this partnership is well managed by the airline, as it was by British Airways, we can start to make a (metaphorical) dent in reducing the aircraft damage bills.

Main News August 3 2012

 

New lounge at Tom Bradley

Star Alliance member carrier Air New Zealand has been selected to design and manage the Alliance’s new lounge at Los Angeles International. The facility is the result of a US$1.7bn investment that has seen the redevelopment of the Tom Bradley International Terminal, which was commissioned by Los Angeles Worldwide Airports.
The Los Angeles Lounge becomes the first Star Alliance branded lounge to feature a new design concept aimed at satisfying the needs of today’s traveler. Designed by the Gensler company of architects, this facility owes much to a contemporary interpretation of modernist Los Angeles architecture dating from the 1950s and the 1960s. To that end, it incorporates predefined spaces to suit a wide range of passenger requirements. Read more

Main News July 20 2012

 

Baggage fees not seen as a deterrent

Rising baggage fees have not stopped travelers checking in their luggage when they fly. According to the latest Department of Transportation data, US airlines collected more in checked baggage fees in the first three months of this year than in the previous three months.

Between them, the 17 largest airlines collected a total of US$815.8m for baggage fees during the initial quarter of this year. This total was up from US$792m posted in the fourth quarter of 2011. The increase comes in the face of a 4% drop in traffic this quarter, according to Associated Press reports.

Delta Air Lines was prominent, collecting the most (US$198m). United, American and US Airways were all runners-up, with each banking more than US$100m in terms of check-in fees.

Airlines also collected US$631m in changed reservation fees for the first three months of the year: this compares with US$567.1m earned in the fourth quarter of 2011 and US$597.8m garnered during the first quarter of 2011.

Once again, Delta outshone other airlines, banking some US$192.3m from this service.

 

 

IAM ratifies fresh contract

The International Association of Machinists and Aerospace Workers District 142 has confirmed that the ramp and stores agents at Alaska Airlines have ratified a new, six year contract. This latest agreement concerns some 600 workforce members and the deal was approved by 91% of those voting.

Various elements are covered under the terms of the document. A phased-in pay rise of 10% is now on the cards and employees can look forward to enhanced merger and job protection, as well as signing bonuses. Other emoluments include increased premium pay and improved benefits and working regulations.

“Both committees are to be commended for their no-nonsense approach to this round of negotiations, which enabled a full and complete agreement to be negotiated and ratified prior to the amendable date of July 19, 2012,” commented the District 142 President, Tom Higginbotham, in a statement. “Such an accomplishment is a rare occurrence in this industry.”

 

Better baggage handling results welcomed

More on bags: baggage handling results from May this year have shown that, for the eighth month in a row, US airlines have improved their on-time performance.

According to the Department of Transportation and an Air Travel Consumer Report, 83.4% of flights arrived within 15 minutes of their scheduled arrival time in May this year, which was a 6% improvement when compared to the same month in 2011. in fact, the industry has posted year on year gains for on-time arrivals for each of the past eight months.
In May, 99.72% of all US airline passengers had their bags properly delivered, an all-time record for any May since records began; the previous record was set in May 2010. The May baggage handling performance also represented the twelfth consecutive month of year on year improvement.

 

Lost – but not always found

According to yet another new survey, airports are an ideal environment in which to lose personal belongings. During 2011, statistics show that, for example, over 8,000 mobile devices were left at seven of the largest airports around the US.

What is more worrying is that only one of those airports reported handing the lost devices over to the authorities. Six out of seven airports said that they were in the habit of donating mobile devices to charity or transferring them to another location.

Portable computers topped the bill, with a total of 3,576 misplaced, equating to 44.6% of all lost devices. Smartphones and tablets were close behind (3,444 lost or 43.0%), whilst USB drives accounted for the remaining 12.4%.

Five out of seven airports stated that most mobile devices were being left behind at Transportation Security Administration’s checkpoints whilst two declared (perhaps unsurprisingly) that they discovered most of the missing devices in restrooms.

Even more alarming was the sheer size of some of lost items, which have included vehicle tires and even microwaves.

 

Main News July 6 2012

 

Screening investment perhaps not enough

New analysis from Frost & Sullivan on the US airport screening technologies market has found that during 2011, the TSA spent approximately US$437.1m in contract obligations toward airport screening technologies.

The Transportation Security Agency is responsible for preventing knives, guns and other weapons from being taken on board aircraft. Despite these precautions, more than 800 guns were detected on board aircraft last year. These findings have highlighted the need for more stringent screening methods.

 

 

Facing up to the question of CO2

ICAO has said that it will focus on three options in addressing greenhouse gas emissions. To achieve this, it will look to eliminate the baseline and credit system, which allowed the trade in baseline increases or decreases.

It was felt that this initiative was broadly similar in scope to global carbon offsetting and as such, represented unnecessary duplication. Remaining options include offsets (with a revenue-generating mechanism) and the tried and trusted cap and trade scheme.

There is ongoing resistance from the US and China (and some other countries) towards the EU’s emissions trading scheme, which has put the International Civil Aviation Organization under pressure to come up with a workable alternative.

ICAO’s Secretary General, Raymond Benjamin, has said that he expected the council to have a draft plan in place by March 2013, effectively extending the proposed 2012 deadline that had been anticipated. But coming up with a scheme that will be acceptable to all of the organization’s airlines, that number close on 200, could well prove elusive.

And so the debate over permit purchase for flights into and out of Europe continues, with no obvious solution on the horizon.

 

 

Growth on the cards at BBA

BBA Aviation has committed to a seven-year lease extension and expansion of its Orlando corporate headquarters offices to accommodate anticipated growth.

Signature Flight Support and ASIG, together with their parent company BBA Aviation, collectively have more than 1,000 employees in 12 Florida cities, with almost 200 based in Orlando. The expansion will support the future anticipated growth of the business and the creation of new, high-earning jobs over the course of the next three years.

“We are delighted to commit to our ongoing presence in Orlando.” commented S Michael Scheeringa, President Signature Flight Support and member of BBA Aviation’s Executive Committee. “We found the partnership with both the state and city to be conducive to both retention and growth.”

 

 

LAN acquisition goes through

History was made on June 22, when Chile’s LAN Airlines completed a takeover of Brazilian rival TAM, thereby creating the world’s second-largest airline by market value, in a deal that analysts confidently predict will yield up to US$700m in annual cost savings within a period of four years.

It hasn’t gone unnoticed that the new carrier, called LATAM Airlines Group, will be flying into the teeth of a recession: indeed, currently there is a slow-down in economic growth and demand for air travel in Brazil. But those significant cost savings could save the day. The airline will be focussing on improving performance in Brazil and it is hoped that during the merger, there will be little in the way of redundancies.

 

 

Volaris fined for misleading website

Recently, the US Department of Transportation fined Volaris US$130,000 for failing to disclose to consumers that they might have to pay baggage fees when buying a ticket.
“We adopted our rule on baggage fees to make sure that consumers have complete and accurate information about how much they will have to pay when they book a flight,” confirmed the US Transportation Secretary. “We will continue to take enforcement action when carriers fail to comply with our rules.”
According to the DOT’s latest regulations, carriers must clearly and prominently disclose on the first PC window that offers a fare for a customer’s itinerary whether or not additional fees for baggage may apply. Moreover, it is obliged to direct travelers to where they can view applicable baggage fees. This regulation applies to all airlines selling air transportation in the US, including foreign carriers.

 

 

Oiling the wheels – but not everybody’s

Delta Air Lines, which in a recent, well-publicized report decided to buy an oil refinery in an attempt to gain more control over its aviation fuel costs, has stated that it will not be selling jet fuel on the open market.

The carrier’s subsidiary, Monroe Energy, is to invest some USD$100m to convert the 185,000 barrels per day refinery in Pennsylvania in an attempt to increase its jet fuel output to 52,000 barrels per day, which represents about 32% of its output. Monroe Energy, which has been specifically set up to own the refinery, will then sell the fuel back to Delta.

 

 

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