Service Leader of the Year: SAASA Charts a Course for Excellence in Airport Services

In the dynamic and demanding landscape of ground support services, one company has not only carved a niche but is actively shaping the future of ground handling and cargo logistics.

Servicios Aeroportuarios Andinos S.A. (SAASA), a Peruvian member of Group ANDINO, has rapidly ascended from its humble beginnings to become a recognized leader, distinguished by its commitment to customer-centricity, safety, and a proactive approach to industry evolution.

The genesis of SAASA in 2012 marked a pivotal moment for the Peruvian ground services sector. Recognizing the dominance of an established player, SAASA embarked on a path of strategic differentiation, explained CEO Enrique Vargas Loret De Mola.

Commencing ramp operations in 2013 with a single domestic airline client, followed by cargo handling and warehousing in 2019 with a regional carrier, SAASA’s initial footprint was modest yet imbued with ambition. This early stage laid the groundwork for a philosophy centered on exceeding expectations and forging strong partnerships.

Vargas explained that a significant cornerstone of SAASA’s infrastructure is its strategically located international cargo warehouse at Jorge Chavez International Airport in Lima.

"It offers 50,000 sqm for storage, more than 7,000 cubic meters of cold chambers for perishable and pharmaceutical cargo, areas for live animals and a large parking area available for customers and heavy transport," he said. "An additional 100,000 sqm free space ensures projected expansion."

From its Peruvian headquarters, SAASA has cultivated a robust domestic presence, extending its operations to key stations including Huaraz, Cuzco, Trujillo, Chiclayo, Iquitos, Tarapoto, Juliaca and Pisco. Within a mere five years, the company has garnered the trust of a prestigious portfolio of first-class airlines operating in the region.

While "first-class" typically refers to a cabin on the aircraft, the caliber of airlines such as AerCaribe, Iberia, Korean Air Cargo, Aeromexico, Air France, KLM, Martinair, Qatar, Ethiopian, Air Europa, Volaris, BOA, DHL, SKY, LATAM, NAC, Aeroregional, and Iceland Air speaks volumes about SAASA’s service quality and reliability.

Business expansion and internationalization

SAASA’s growth trajectory extends beyond Peruvian borders, demonstrating a strategic focus on internationalization.

In 2022, Servicios Aeroportuarios Andinos Global acquired Globalia Handling in Mexico, rebranding it as SAASA Global Mexico. Operating at Mexico City International Airport (AICM), SAASA Mexico provides ramp and passenger services to prominent carriers like Iberia and Hainan China Airline. Furthermore, the CCO-SAASA Global manages an air cargo warehouse at Benito Juarez International Airport, serving Iberia and British Airways. This expansion into the Mexican market signifies SAASA’s ambition to replicate its successful Peruvian model in new territories.

Further solidifying its global footprint, SAASA has secured authorization to perform passenger operations in Bogota, Colombia.

A significant milestone in its internationalization strategy is the 30-year concession awarded by AENA in January 2024 for the construction and operation of an air cargo terminal at Adolfo Suárez Airport in Madrid–Barajas, Spain. With construction already underway and an estimated completion date around February 2026, this terminal is a further testament to SAASA’s forward-thinking approach.

Strategy for the future

The breadth of SAASA’s service portfolio is evident in the company's comprehensive suite of airport services, encompassing ground support on ramp, passenger services, fixed base operations (FBO), cargo handling, warehousing, and cargo general handling agent (GHA) services.

In the air cargo warehousing sector within Peru, SAASA navigates a competitive landscape that includes Talma Servicios Aeroportuarios, Frio Aereo Asociación Cívil, and Shohin S.A. For ramp and passenger services in Peru, key competitors include Talma Servicios Aeroportuarios, Menzies Aviation, and Alteliza, respectively. Despite this competition, SAASA has demonstrably captured significant market share through its differentiated approach.

SAASA's ascent can be largely attributed to its strategic focus on differentiation rather than direct competition with established players. From the outset, the company adopted a philosophy encapsulated by the mantra, "SAASA is not the competitor but the future" and the motto “Leading the Way…!” This vision is brought to life through three core tenets:

· Personalized services from the initial engagement

· Tailor-made solutions designed to meet specific client needs

· Unwavering commitment to listening to and acting upon customer feedback

This customer-centric approach manifests in various ways, including the provision of exclusive warehouse areas and lanes, customized cargo flows, development of bespoke IT solutions and systems integration, dedicated personnel for each airline partner, and the establishment of customized key performance indicators (KPIs).

The implementation of monthly focus group sessions with key stakeholders such as customs agents and freight forwarders, with an impressive 95% of suggestions implemented, underscores SAASA’s dedication to continuous improvement and responsiveness.

What's more, the Covid-19 pandemic presented both challenges and opportunities. SAASA proactively stepped up to facilitate the proper handling of pharmaceutical products, demonstrating its adaptability and commitment to supporting the industry during a critical time. This period further solidified the company’s pursuit of excellence, aligning its standards with international best practices.

"Differentiation must have a clear course and it was the search for excellence, even exceeding international standards," Vargas said. "SAASA decided to prepare itself for the big leagues and of course, to assure a well-trained team was crucial. We found IATA´s Certifications as a valuable tool to achieve this goal and started the process to use the IATA Certifications as a standard."

Achieving ISAGO certification for its headquarters and Lima station marked a significant step, followed by the prestigious IATA CEIV certifications, guaranteeing excellence in the handling of specialized cargo: CEIV PHARMA for pharmaceutical products, CEIV FRESH for perishable goods, CEIV LIVE ANIMALS, and CEIV LITHIUM for lithium batteries.

Completing this array, SAASA also attained the Smart Facility Operational Capacity (SFOC) Certification. And, in 2022, SAASA achieved a remarkable milestone, becoming the first ground support provider worldwide to hold all five IATA certifications, positioning it as a highly reliable and compliant partner within the global supply chain.

The value of safety

Safety is not merely a procedural requirement at SAASA; it is an intrinsic value deeply embedded in the company culture.

"Safety is of utmost value in SAASA, our viewpoint is comprehensive, i.e. safety of the aircraft, cargo, infrastructure, airport, etc. but especially the people," Vargas stated.

With a comprehensive view encompassing aircraft, cargo, infrastructure, airport, and, most importantly, personnel safety, SAASA goes beyond mere control measures.

The company invests heavily in providing its team with the necessary tools and training to ensure safe operations. This commitment has fostered a strong safety awareness culture, leading SAASA to extend its influence beyond its own operations, actively promoting best safety practices across the industry.

This proactive stance was recognized with the “Safe and Reliable Operations Award 2024” from Lima Airport Partners for the second consecutive year, highlighting SAASA’s zero incident record and its contribution to industry-wide safety promotion.

"This has been another safe year," Vargas said. "We do not take safety for granted. We ARE safety."

Overcoming challenges, targeting goals

SAASA’s journey has not been without its challenges. Entering a highly specialized and regulated sector, previously dominated by a large and experienced player, presented a significant hurdle. Establishing a new business within the Group ANDINO portfolio added another layer of complexity. The initial strategy was clear, but the real challenge lay in its execution: convincing potential airline clients to entrust their operations to a new entrant.

SAASA’s focus on customer-oriented services proved to be the key to overcoming this challenge, and the results speak for themselves.

"In just five years, SAASA has reached a market share in Peru of 33.3% for Import Cargo as well as 15.3% for Export Cargo," Vargas said.

Looking ahead, SAASA’s primary goals center on the successful integration of its international operations in Mexico, Colombia, and the upcoming Madrid–Barajas cargo terminal. Exporting its best practices and achieving international standards across these diverse markets is a key priority, with the ambition of establishing a seamless air cargo bridge between North and South America.

SAASA recognizes the transformative potential of automation and artificial intelligence within the ground support industry. The company has already initiated a progressive migration of its ground support equipment (GSE) to hybrid vehicles, demonstrating a commitment to environmental sustainability and operational efficiency.

Furthermore, SAASA is actively collaborating with airport operators to facilitate the adoption of electric GSE as infrastructure allows. Sustainability, ESG principles, and environmental care are integral to SAASA’s long-term vision. The company has actively

sponsored Sustainable Aviation Fuel (SAF) initiatives and has achieved a two-star certification for its CO2 footprint from the Ministry of the Environment.

Several noteworthy initiatives further underscore SAASA’s commitment to excellence. The SAASA Safety Academy provides a comprehensive theoretical and practical approach to safety, fostering interaction, experience sharing, and proactive risk management among operational personnel. In 2024 alone, the academy delivered over 8,203 lecture hours to 200 operational staff, a three-fold increase from the previous year, contributing to SAASA’s impressive record of zero operational safety incidents.

The FOD (Foreign Object Debris) Initiative highlights SAASA’s proactive approach to aircraft safety. This initiative resulted in the identification and reporting of 2,110 FODs between January and August 2024, significantly exceeding the entire airport community’s 2023 total. This has fostered a broader safety-conscious culture, with the entire airport community now participating in periodic joint FOD marches.

Addressing the critical issue of ULD (Unit Load Device) management, SAASA implemented a dedicated team and a specialized area equipped with racks for the inventory, control, and monitoring of client ULDs. This has resulted in the seamless handling of over 120 ULDs daily with zero incidents of non-airworthy ULD usage or weight discrepancies, a best practice now being emulated by other airport users.

SAASA’s commitment to quality extends to specialized cargo handling. As “Cold Chain Caretakers,” the company meticulously preserves the integrity of temperature-sensitive pharmaceutical and fresh products through trained personnel, agile paperless processes, and efficient storage utilizing technology for time optimization. Similarly, SAASA’s “First Class Passengers” initiative ensures that live animals receive exceptional care and attention throughout their journey, differentiating SAASA as a leader in customer service for this specialized sector.

SAASA’s journey is a compelling narrative of strategic vision, unwavering commitment to its core principles, and a proactive embrace of innovation and international expansion. From its initial foray into the Peruvian market to its growing global presence, SAASA has consistently demonstrated its ability to not only meet but exceed the evolving demands of the airport services industry. As it continues to invest in safety, sustainability, and customer-centric solutions, SAASA is undoubtedly poised to play a pivotal role in shaping the future of ground support and cargo logistics on a global scale.