Discuss the advantages and disadvantages of different airport ground

Discuss the advantages and disadvantages ofdifferent airport ground handling modelsDiscuss the advantages and disadvantages of different airport groundhandling modelsIntroductionThe system of airport ground handling is different to each country. The most ofcountries are operating airport ground handling system based on U.S model, EU model orthird party model. This report is presenting comparison of U.S model, EU model or Thirdparty model and also, presents Incheon International airport, South Korea as a part ofanalysing which system has been adopted and how ground handling performs.

Figure 1. The scope of Ground handlingDefine the key ground handling models are used around the worldOne of the key activities for airport operation is ground handling. The groundhandling can be defined as shownError: Reference source not found(Ashford 2013). The ground handling is different fromcountry to country and it is alsodifferent to airport to airport withinsame country. The ground handlingoperation has been developed as airtravel passenger increases andbecoming complex (Mudyawabikwa2011).There are three major models is used around world for ground handling defined (Ashford2013);- U.S model- EU model- Third party modelU.S model is very unique since small proportion of ground handling is performed by Table 1 Swissport ground handling serviceFigure 2 The simple model (Smith 2001)independent companies.

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Most of ground handlings performed in the U.S is managed bydedicated airline such as United Airline and American Airline (SH&E 2004). It does notmean all U.S airport runs this way as mentioned before, there are independent companies,Swissport which does main stream of ground handling in U.S as shown in Error: Referencesource not found (swissport2015).The Error: Reference sourcenot found represent simpleground handling model whichrefers to U.S model as airlinetakes main role of groundhandling operation (Smith2001).

US model is based on airline ground handling and the airline provide services andequipment.EU model is different to U.S model in terms of operation handler (Ashford 2013). Figure 3 Ground handling in EuropeAirport runs ground handling service by itself rather than airlines like US model (Jiang2015).

It is monopoly game and airport authority (Ashford 2013). However, ‘EuropeanCommission (EC) has introduced regulations that discourage or prevent monopoly positionsin ground handling’ (Ashford 2013). EU models is based on airport authority which is mostof them are under supervision of government. All the ground handling related service andequipment is main streamed with airport authority.

Third Party model is more like mixture of both models explained before. One airlineprovide ground handling service to another and specialised independent company providesground handling service at the same time. The Swissport which is one of major specialised Figure 4 Airports that ground handling operate by Swissportindependent ground handling company provide most of ground handling service as shownError: Reference source not found.As Error:Referencesource notfoundrepresentgroundhandlingoperationmap bySwissport,manyairports areusing third party model as their ground handling system and it is more concentrated in EUcompare to US since US airports are more based on their major airline’s ground handlingservice.Figure 5 World passenger air travel by volume, 1950-2012Explain the relationship between airport and airlines”Airport managers in the past kept the grass mowed and the lights lit, and negotiatedwith the airlines every thirty years.” (Cohen 1985).The quote above shows role of theairport as gateway for the air travelin early stage of air travel era.However, as air travel passengerincreases significantly overdecades, the airport need to berestructured how they managesystems as shown Error: Referencesource not found.

Airlines only stands as client, customer service provider and operator as an airport’sperspective. But the trend now is heading toward as team player and understand each other’sbusiness. Airport regularly engage airlines in dialogue on airport operations plans and evenproblems through organizing committee for each department of the airport. There are common interest on both party such as quality service, on time departure, facilitiesand cost which can be discussed and improve to satisfy passengers. Now airport reputation isnot only depends on to their own also airlines as well.

Figure 6 A Complex Model with Airports Providing Handling Services Changi airport is great example of how they successes in this challenges. More than 83airlines with connected 57 countries is very attractive airport to airlines which they canorganize more joint service and code-share with other airlines (Poh, Eileen 2007).The perspective from ground handling is following the trend of relations betweenairport and airlines. A complex model with airports providing handing services as shown onError: Reference source not found allows airlines have their own choice of third party groundhandling companies to cutdown the cost of operationthroughout thecompetition.

Also, airport,themselves can offercontract to specialisedindependent companies toensure quality of serviceand competitive price to cut down running cost of operation.Discuss the advantages and disadvantages of different airport groundhandling modelsU.S model’s ground handling is heavily depends on airline although it is easier to getaccess to equipment and facilities to operate as national player. As Airline Company, they arewilling to limit their expenses.

However, it is trade off with time efficiency as airline which increase aircraft productivity which leads more profits to them. Airline company as operatorof the ground handling, they can planning and design of facilities for their needsEU model is more depends on airport authority to operate ground handling system,which increases profit of themselves since it is high cost sector of airline business. With theprofit they made they can re investment to their facilities and increase the quality of servicefor passengers while they are staying in the airport. However, since it is operated with one bigorganisation, it can be monopoly game which we can learn from investigation into Milanairport ground handling service by EU commission (EUROPEAN COMMISSION 2014).Compare your own country’s airport with different models around theworld and identify the model is used at your own country’s airportIncheon international airport (ICN) is used in this report to analyse ground handlingsystem and compare with other models.It is refer to complex model suggested by (Smith 2001) with airport providinghandling services. ICN was constructed near capital city as expansion of international flightconnectivity by government and they established Incheon international airport corporation(IICN) under the government’s sub-ordinate.

It is one of the biggest international airport with89 airlines and 194 destination airport which is good enough to attract airline as transfer hub.(IIAC 2015) ICN has subordinate department for ground handling and control quality ofservice and issues generated by third party contracted companies this is out sourced tospecialised independent company which related 44 sectors of ground handling service. (Suk2014).

Also, ICN runs share benefit program with third party companies to assure the qualityof service. The weakness is also there in ICN. It is government owned and operated as IICNleasing fees and operation cost from airline is more expensive compare to other internationalairport.It is different ground handling system compare to Melbourne international airportowned and operated by Qantas which is Airline Company and specialised independentcompanies.

The service quality is less satisfy compare to ICN. The report delay in MEL isaverage 11% for Feb 2015 (The Department of Infrastructure and Regional Development2015) which is very high compare to ICN which is 4.13% (IIAC 2015).

ConclusionGround handling is very complexes and expensive sector of airport business. Thereare advantages and disadvantages for different models of operating. The role of airport andairline has been expanded and changed over decades and now airport and airline is not justcustomer and provider relationship to assure quality and achieve the high performancecompeting against other airports and airlines. Low cost carrier (LCC) is jumped into themarket recently and they suggest new model of ground handling which require less.

LCCtends spend less operation expenses which will reduce the profit of airport who is using EUmodel which need to consider next model to assure profit and quality. ReferencesAlonso, BA 2014, ‘Ground handling management modelling and visual interface conceptualdesign’, Aeronautical Engineering, Universidad de Sevilla Escuela Tecnica Superior deIngenieria, Toulouse.Ashford, N,SH,MC,CP,ABJ 2013, Airport Operations, 3rd edn, McGraw-Hill, New York.Cohen, DA 1985, ‘THE IMPACT OF AIRLINE-AIRPORT RELATIONS ON AIRPORTMANAGEMENT DECISIONS’, Massachusetts Institute of Technology, Flight TransportationLaboratory, FTL REPORT R85-2, Cambridge, Mass.

EUROPEAN COMMISSION 2014, State Aid: Commission opens in-depth investigation intoMilan airport ground-handling services, viewed 2 April 2015, .IIAC 2015, Incheon airport, viewed 2 April 2015, .Jiang, 2015, Airport/Airline Operations, Melbourne, VIC, Australia, viewed 21 March 2015,.Mudyawabikwa, C 2011, ‘CHALLENGES AND BEST PRACTICES FOR GROUNDHANDLING SERVICES’, Department of Business Administration, University ofStellenbosch, Stellenbosch.

Norman J. Ashford, SMPHW 2011, Airport Engineering: Planning, Design, andDevelopment of 21st Century Airports, 4th edn, John Wiley & Sons, Inc, New Jersey.Poh, Eileen 2007, Relationship between airlines and airports, viewed 2 April 2015,.SH 2004, Ground handling operations: a technical perspective, viewed 2 April 2015, .

Smith, CJ 2001, ‘GROUND HANDLING IN EUROPE: IMPACT OF THE EU DIRECTIVE’,SH and E, London.Suk, JY 2014, ‘A Study on the Effect of IIAC’s Benefit Sharing System with OutsourcingCompanies’, Dept. of Aviation Business Administration, Graduate School of Korea AerospaceUniversity , Ilsan.swissport 2015, Network, viewed 31 March 2015, .Tan, YL 2010, ‘Differences in ground handling in the global market’, Department ofautomotive and aeronautical engineering, Hamburg University of Applied Science.The Department of Infrastructure and Regional Development 2015, Airline On TimePerformance Statistics —Monthly, The Department of Infrastructure and RegionalDevelopment , viewed 29 March 2015,.