Refocusing AGI

July 8, 2001

Refocusing Agi

Separated from airport management, it targets airline/airport services

By John F. Infanger, Editorial Director

July 2001

GLENDALE, CA — Airport Group International was for years a leader in contract airport management. It still is, under new parent TBI, but AGI today is a division targeting airline/airport services.

Jack Evans, AGI chief operating officer In September 1999, British-based TBI purchased AGI and in time moved the airport management function to its North American headquarters at the Sanford, FL, converted naval base it is helping to develop under contract. Jack Evans, 51, who oversaw the airport management and development contracts for AGI at airports in Australia and Bolivia, was selected to head up the new AGI, which then turned its focus full-time to airline and airport services. "What we’ve tried to do is marry up the two operating divisions of the company," explains Evans, "one in airport services and the other airport management. We felt it was important having somebody that knew airport management and has an ability to work with the airports when providing services. "To be honest, we probably didn’t closely coordinate as we might have (under the old AGI). It’s like running an airport: How do I know I can improve unless somebody comes along and tells me?" Evans says that, overall, TBI corporation is still in a consolidation mode, focused on most efficiently operating what it already has under contract. At the same time, AGI has retreated somewhat from its into-plane fuel business to focus on growth in cargo handling, facilities management, ramp/tower operations, and passenger service contracts such as ticketing, baggage, and FIDS management. "Airport Group International is providing the airport services function: into-plane fueling; facilities management; cargo; passenger service. Those are the services that we provide. If TBI needs any of those services provided, they come to us. Or if there are U.S. airports that want those services, bids come open and we will go after those."
The AGI offices in Glendale, CA, today serve as headquarters for the airline/airport services division of TBI, which has moved the North American airport management division to Sanford, FL.

CARGO, PASSENGER SERVICES
The company remains a player in the airline fueling business, but is looking at other service areas to bring in more manageable margins.
Says Evans, "The fueling is where AGI really got its start, under the old Lockheed Air Terminal. We had fueling contracts with a lot of airports. We don’t have as many into-plane fueling locations as we had with all the changes in the company, and really what we’ve been doing lately is strengthening our passenger services, ground handling, and cargo operations. We acquired an East Coast company, U.S. Airports, in November 1999, and we now have six airports where we’re providing cargo operations. That’s probably been our biggest thrust — trying to get away from an into-plane fueling specialization and picking up some of these other operations.
"We’ve kept the cargo as a separate operating division. The potential for growth is significant."

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AGI’s Jack Evans has overseen management of airports internationally. He shares his thoughts on how airports operate in the U.S. and abroad.
• On "ownership" of three Bolivian airports under a 30-year lease ...
"When you own the airport, it’s a lot easier to go out and make changes in the structure or the service, because the only one you have to convince is the leadership of the company. So we made substantial changes, and there weren’t a lot of people who really got to vote on that. Now, you did have to work with the government, and there were a lot of government officials in Bolivia who had a say in the airport."
• On potential inefficiencies at U.S. airports ...
"There are airports that I go to in this country right now where I will go in and see things happening at the airport, and you’ll wonder why they’re doing something that’s inefficient, wasteful. You know, they could save a lot of money by not providing that function.
"If you go to airports around the country, you go to some and they have their own trash collection agencies. I’m sure they can find several companies that are picking up trash. And, are they doing as good a service as one of those trash companies would? It’s probably costing them more money in the long run.
"If you can outsource or privatize and get the same service at a cheaper rate, then it ends up being better for the airport, for the carriers, and for the passengers, because it keeps your costs down."
• On lessons learned from the Indianapolis management contract led by Mayor Stephen Goldsmith ...
"If I can go to the Yellow Pages and I’m a government agency, and I can see that there are three companies that are providing a service, then they can probably provide that service more efficiently. Since there’s three, you can get a competitive bid and probably get a low price."