I their ramp handling operations. With the help

I will be using Singapore’s Changi Airport to compare
with different models around the world.

 

In Singapore, Changi Airport uses Third-party ground
handling model for their airlines. The two main ground handling companies will
be SATS (Singapore Airport Terminal Services) and Dnata (Dubai National Air
Transport Association). This two companies have been very competent to serve
the airlines at Changi Airport for over the years. In a recent report by
channelnewsasia, SATS introduces augmented reality (AR) glasses across their
ramp handling operations. With the help of these smart glasses, the staffs are
able to scan the visual markers which in a way is similar to QR codes on
baggage and cargo containers. This will improve the efficiency of baggage and
cargo loading, where loading time will be reduced from an hour and 45 minutes. Therefore,
this will allow airline passengers at Changi Airport to have shorter waiting
times for their flights, which will then improve the efficiency and reputation
of Singapore’s carriers and Changi Airport. This shows that how Third-party ground
handling company is keeping up with technology to bring a better and seamless
experience for airlines, which benefited Singapore in comparison to other
countries. On the other hand, this two companies have been very competitive
against each other for over the past few years. In an article by todayonline,
it has indicated that there is a price war between this two ground handling
companies. It stated that they have fought for contracts to service airlines
here. They were willing to lower their rates down by 30 percent which will
lower their profits. Airlines are taking advantage of this by negotiating
harder for better contracts with SATS and dnata. This will naturally reduce the
costs of air travel for passengers where airlines can lower their cost of
production. Eventually, making Changi Airport a successful airport. However,
having Third-party ground handling companies is not always good. An example
will be what if SATS and dnata turn collusive, as there is no guarantee that
such competitive behaviour between them will last for long term. This would
result airlines and consumers losing out. Hence, in Singapore, Competition
Commission of Singapore (CCS) will be responsible that this does not occur to safeguard
the interest of airlines and consumers.

Comments are closed.