Airports and Airline Services ...

... it’s not a tidal wave yet, but the movement of airports into the ground handling business has some momentum. Why they do it, how, and the associated risks were topics of discussion in San Antonio last week as the Aviation Ground Services Association, an affiliate of the American Association of Airport Executives, hosted its first annual Ground Handling Initiatives Workshop. Some 40 attendees shared their experiences, which reveal that there isn’t one core reason airports consider the move. It may be about opportunity, as at Savannah; it may be about filling a need and maintaining air service, as at Moline and Daytona Beach; or, it may be about guaranteeing a level of service for passengers, as at Chattanooga. A few high-speed, low-pass notes from San Antonio ... - Bruce Carter, director of aviation at the Quad Cities International Airport in Moline, IL set up an independent LLC to provide airline refueling when the previous provider pulled out of the market and the local FBO, Elliott Aviation, declined to enter the business. Carter says his LLC pumped 5.3 million gallons in 2007; he’s established a list of airline employees who can fill in part time, when necessary; and he’s exploring getting into baggage handling. - Bob Uhrich, director of air service development at Savannah/Hilton Head International Airport, previously worked setting up ground handling operations for charters into Europe where, he points out, the “airports did everything.†Uhrich and SAV director Patrick Graham saw airline services as an opportunity; they trained their staff and then let it be known that they were “on the prowl†for such business. The launch customer is AirTran, which is being charged on a per-turn basis. They’re pursuing more business, possibly even refueling. - Knoxville is setting up an LLC to offer ground handling to airlines. - Binghamton, NY is getting into ground handling. - Daytona International just got into ground handling, a situation in which AirTran threatened to drop service when its own handler pulled out of the market and the carrier couldn’t agree on terms with the remaining provider. So the airport got into the business, and has since added USAir. - Mike Landguth relates that Chattanooga recently got into airline services because “we decided to control the passenger experience.†The airport staff also had explored new opportunities and ranked them, deciding ground handling might be a business to explore. American Eagle was the launch customer. - Jerry Ruth of insurance provider ACE USA-Aerospace relates that the insurer had refused to get into airline handling insurance until Mobile and subsequently other airport customers requested quotes for it. (Globally, ramp damage is about $5 billion annually, he says.) He explains that some states afford public entities such as airports sovereign immunity, which can significantly reduce liability exposure. Also, he cautions that if an airport provides refueling it will need environmental liability coverage. - Ed Jacob, regional director of customer services for American Eagle in Chicago, has been a key advisor for AGSA from the outset. With the (expected) divestiture of American Eagle from parent AMR/American, he says the regional carrier is “very interested†in pursuing ground handling opportunities for other airlines, and suggests that there may be an opportunity to partner with airports, with the latter providing equipment maintenance and GSE procurement. Thanks for reading. jfi