Third Swissport which is one of major

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 specialisedFigure 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 ServicesChangi 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 whichincrease 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.


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