Airport Airside Services Industry Report

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Global Airport Airside Services Industry
Published on August 2011

Report Summary

This report analyzes the worldwide markets for Airport Airside Services in US$ Million under two service types - ramp handling and
others. The report provides separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific, Latin America,
Middle East and Africa. Annual estimates and forecasts are provided for the period 2009 through 2017. A six-year historic analysis is
also provided for these markets. The report profiles 186 companies including many key and niche players such as Aviapartner,
Aircraft Service International Group, Inc., Air BP Limited, Dnata, Menzies Aviation PLC, National Aviation Services, SAS Ground
Handling, Serviços Auxiliares de Transporte Aéreo SA, Servisair, Swissport International Ltd., and Worldwide Flight Services. The
report also profiles key Ramp Equipment providers such as Bliss-Fox Ground Support Equipment Pty. Ltd., and TLD Group. Key
Airline Catering Service providers also profiled in the report include Gate Gourmet, LSG Sky Chefs, Servair, and SATS Ltd. Market
data and analytics are derived from primary and secondary research. Company profiles are mostly extracted from URL research and
reported select online sources.

Table of Content

1. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS 1
Study Reliability and Reporting Limitations 1
Disclaimers 2
Data Interpretation & Reporting Level 3
Quantitative Techniques & Analytics 3
Product Definitions and Scope of Study 3
Airport Airside Services 3
Ramp Handling 3
Baggage Handling 4
Freight and Mail Handling 4
Others 4
Fuel and Oil Handling 4
Aircraft Maintenance 4
Catering Service 4

2. INDUSTRY OVERVIEW 5
Current and Future Analysis 5
Market Scenario 5
'Trade crosses international borders in this boundless world' 5
Table 1: A Typical Airplane Cost Structure: Percentage
Breakdown of Various Costs - Airplane Ownership, Fuel,

Global Airport Airside Services Industry (From Slideshare) Page 1/17


Flight Crew, Cabin Crew, Aircraft Maintenance, Ground
Handling, Control and Communications, Landing Fees and Hull
Insurance (includes corresponding Graph/Chart) 5

Table 2: Global Market for Airport Services (2010):
Percentage Share Breakdown by Services - Fixed Base
Operations, Ground Handling Services, Administrational and
Operational Services, Airport Traffic Control Operations and
Other Airport Services (includes corresponding Graph/Chart) 6
Turbulence in the Air 6
Table 3: World Aviation Routes Ranked by Annual Air Travel
Growth Rates (2010 - 2020) (includes corresponding
Graph/Chart) 7

3. AIRCRAFT GROUND HANDLING - AN OVERVIEW 8
Table 4: Global Market Penetration of Ground Handlers (2005,
2007, 2010 & 2015): Percentage Breakdown by Major Industry
Stakeholders - Independent Handlers and Airlines/Airports
(includes corresponding Graph/Chart) 9
Ground Handling Market - Market Drivers and Constraints 10
External Factors Affecting Ground Handling Industry 10
Global Ground Handling Industry - An Outlook 10
Regional Companies have an Edge over Global Counterparts 11
Handling Companies Expand Network Globally 11
Table 5: Global Ground Handling Market (2001 & 2008) -
Comparison of Network Expansion and Turnover by Major Players -
Swissport, Penauille Servisair, Menzies, WFS and
Aviapartner 12
Competitive Analysis 12
The Ground Looks Shaky for Further Consolidation 12
Table 6: Global Ground Handling Market (2010): Percentage
Share Breakdown by Ground Handling Service Providers -
Swissport, Servisair, WFS, Menzies, ASIG/ Signature,
Aviapartner and Others (includes corresponding Graph/Chart) 13
Overview of Global Airline Catering 13
Table 7: Global Airline Catering Industry (2010): Percentage
Market Share Breakdown by Major Players - LSG Sky Chefs, Gate
Gourmet, Servair, SATS Ltd, Alpha Group, Newrest, Qantas
Catering Group Ltd, DO & CO Restaurants & Catering AG,
Chelsea, Cathay Pacific Catering Services and Others
M&A Deals in the Ground Handling Industry 14
Regulatory Environment 14
Service Level and Quality - Major Differentiating Factors 14
Table 8: Longevity of Ground Handling Service Contracts
(2008): Percentage Share Breakdown By Contract Types -
Medium-Term, Long- Term , Short-Term and Open Contracts



Power Imbalance Among Suppliers and Buyers Leads to Airlines
Domination 15
Regulatory Environment Protecting the Interests of Airlines 15

4. GROUND HANDLING MARKET TRENDS & ISSUES 16
Private Investments Flood the Global GHS Industry 16
Consolidation of the Airport Catering Services Market 16
Trends in the Air Cargo Industry 17
Innovative RFID Baggage Handling System for Aalborg Airport,
Denmark 17
Claims of Mishandled Baggage Significantly Lesser in 2010 18
Baggage Handling to Turn Complex in Future 18
Airlines' Cost Cutting Programs Make Way into Inflight Catering 18
Flight Catering - the Most Complex Sector in the Catering
Industry 19
Differentiation in In-flight Services - A Competitive Advantage 19

5. SERVICE OVERVIEW 20
Industry Stakeholders 20
The Major Ground Handling Services and Corresponding Investments 20
Aircraft Traffic Management on Surface - Ground Control 20
Service Segmentation 21
Major Ramp Services 22
Baggage Handling 22
Freight and Mail Handling 22
Fuel and Oil Handling 22
Aircraft Maintenance 23
Catering Service 23
Cabin Service 23
Field Operation Service 23
Passenger Service 23
Ramp Equipment 23
Tow bars 24
Pushback Tractors 24
Forklifts 24
Aerobridges 24
GPUs 24
Loaders 24
Transporteurs 24
Conveyor Belts 24
Catering Loaders 24
Mobile Vs. Static Ground Handling Equipment 24
The Turnaround Time 25
A Typical Ground Handling Operations Schedule 25

6. SERVICE/PRODUCT INTRODUCTIONS 26
Ladurée UK Introduces Ladurée Aviation In-flight Catering for
Private Jets 26



Celebi Launches Ground Handling Services at an Airport in India 26
airBaltic to Launch Ground Handling Services in Talinn 26
Mercury Air Group Launches MAC Cargo Handling 26
WFS India Launches Ground Handling Operations in Indian Airports 26
SATS Unveils Asia-Pacific Star, a New Ground Handling Unit 27
Delta Air Lines Launches Regional Handling Services in the US 27
Europcar Introduces Airside Fast-Track Rental Service for UK
Customers 27
Bliss-Fox Launches Flagship F1-500 Tow Tractor for Ground
Handling in Asia 27

7. RECENT INDUSTRY ACTIVITY 28
SATS Ltd Acquires 40% Stake in Adel Abuljadayel Flight Catering 28
ICV Partners to Acquire Cargo Airport Services 28
Airbus Establishes Airbus ProSky as a Subsidiary 28
Chennai International Airport to Implement IATA Standards in GHS 28
Celebi Introduces Cargo Handling Service at Frankfurt Airport 29
ASIG to Provide GHS at Buffalo Niagara International Airport 29
AeroGround Inks 6-Year Ground Handling Agreement with Lufthansa 29
Virgin Atlantic Extends GH Contract with ASIG at EWR and JFK
Airports 29
China Cargo Airlines Partners with Bangkok Flight Services for
Cargo Handling 29
Cargo Airport Services to Provide Ramp Handling for Nippon
Cargo Airlines 30
Servisair to Provide Cabin Cleaning and Passenger Handling to
KLM at DFW 30
Aviapartner to Provide Ground Handling to Gulf Air at Milan
Malpensa 30
Menzies Macau to Provide Ground Handling for Spring Airlines 30
Menzies Secures Two Ground Handling Contracts at Los Angeles
Airport 31
Menzies to Provide Ramp Handling Service to AirTran at Cancun 31
Menzies to Provide Ground Handling Services for Air Berlin at AMS 31
Aviapartner to Provide Ground Handling Services to Qatar
Airways at Brussels Airport 31
Menzies to Provide GH Services to Norwegian Air Shuttle at
Gothenburg- Landvetter Airport 31
Malev GH to Provide Ground Handling Services to American Airlines 31
Celebi to Invest in Indian Air Cargo And Ground Handling
Operations 32
Dnata Acquires Alpha Flight from AutoGrill SPA 32
Airpro Acquires RTG Ground Handling 32
SATS to Acquire JALI's Stake in TFK Corporation 32
Accent Equity Acquires Stake in Aviator Airport Alliance 33
Vancouver Airport Services Acquires Stake in John Lennon Airport 33
HAVAS Ground Handling Services Acquires Stake in North Hub
Services 33



Saudi Arabian Airlines to Acquire National Handling Service Co 33
Dnata to Acquire Alpha Flight Group from AutoGrill 33
Singapore Airport Terminal Services Undergoes Name Change, to
'SATS' 34
Japan Airlines to Divest Three Ground Handling Units at Kansai
International Airport 34
Czech Airlines Merges with CSA Support 34
Iberia, British Airways Merger Receives European Commission
Approval 34
SATS and Air India Form JV for Cargo And Ground Handling Service 34
Moveo Systems and BIAL Ink Agreement 35
Deutsche Lufthansa and Fraport Ink Ground Handling Agreement 35
Sterling Airlines and Nordic Aero Ink Partnership Agreement 35
NAS to Provide GH Services to Ethiopian Airlines 36
Somalian Government Delegates AAS of Mogadishu International
to SKA Air and Logistics 36
Servisair to Provide Ground Handling Services to British
Airways at Helsinki 36
Aviapartner to Provide Ramp Handling Service to Lufthansa at Köln 36
Celebi Inks Ground Handling Agreement with Austrian Airlines 36
NIIT Collaborates with SATS for Cargo Handling Services 36
SITA and INFORM Collaborate Over Introducing IT Systems in GHS 37
NASG and Fly Dubai Ink Ground Handling Service Agreement 37
National Aviation Services Group Bags Deal from Delta Airlines 37
SATS Obtains Ground Handling Service Contract from Changi
Airport Group 37
North Hub Bags a GHS Contract from Riga International Airport 38
Avia Trust to Double Aviation Support Infrastructure at Dubai
Airport 38
Cambata, Bird Group to Support AISATS' Ground Handling at
Terminal 3 in Delhi 38
Philippine Airlines to Divest Airport Airside Services and
Reservation Call- Center 38
Ferrovial Divests Swissport to PAI Partners 38
Go-Ahead Divests Ground Handling and Cargo Operations to Dnata
and Servisair 39
Servisair Acquires Regional Ground Handling Businesses of Aviance 39
Menzies Aviation acquires Assets of Kion de Mexico 39
Dnata to Acquire Two UK-Based Ground Handling Providers 39
Marfin Investment to Acquire Olympic Airways' Ground Handling
Services 39
TAV Airports Holding and Al-Rajhi Form JV 40
KLM Ground Services Mergers with Air France Services 40
Flybe and Jeppesen Ink Ground Handling Agreement 40
Zebra Enterprise Solutions and ADAS Ink Agreement 40
Aviapartner to Provide Ramp and Cargo Handling to
AirBridgeCargo at Schiphol Airport 41
SAS Divests Finland and UK Ground Handling Businesses to ASIG



and ISS Palvelut 41
Signature Acquires FBO Service Provider Interflight Executive
Aircraft Services 41
NAS Secures Contract for Ground Handling Services at Mumbai
International Airport 41
POI Aviation to Provide Full Ground Handling Services to
Shanghai Airlines 42
CAS to Provide Cargo Warehouse Handling to Korean Air Cargo at
JFK Airport 42
Etihad Airways Extends National Aviation Services' Ground
Handling Contract 42

8. FOCUS ON SELECT GLOBAL PLAYERS 43
Key Airport Airside Service Providers 43
Aviapartner (Belgium) 43
Aircraft Service International Group, Inc [ASIG] (US) 43
Air BP Limited (UK) 44
Dnata (Dubai) 44
Menzies Aviation PLC (UK) 44
National Aviation Services [NAS] (Kuwait) 44
SAS Ground Handling (Sweden) 45
Serviços Auxiliares de Transporte Aéreo SA (Brazil) 45
Servisair (France) 45
Swissport International Ltd (Switzerland) 46
Worldwide Flight Services (France) 46
Key Ramp Equipment Provider 46
Bliss-Fox Ground Support Equipment Pty. Ltd. (Australia) 46
TLD Group (France) 47
Key Airline Catering Service Providers 47
Gate Gourmet (Switzerland) 47
LSG Sky Chefs (Germany) 47
Servair (France) 48
SATS Ltd (Singapore) 48

9. GLOBAL MARKET PERSPECTIVE 49
Table 9: World Recent Past, Current and Future Analysis for
Airport Airside Services by Geographic Region - US, Canada,
Japan, Europe, Asia-Pacific (Excluding Japan), Latin America,
Middle East and African Markets Independently Analyzed with
Annual Revenue Figures in US$ Million for Years 2009 through
2017 (includes corresponding Graph/Chart) 49

Table 10: World Historic Review for Airport Airside Services
by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific
(Excluding Japan), Latin America, Middle East and African
Markets Independently Analyzed with Annual Revenues in US$
Million for Years 2003 through 2008 (includes corresponding
Graph/Chart) 50



Table 11: World 15-Year Perspective for Airport Airside
Services by Geographic Region - Percentage Breakdown of Dollar
Revenues for US, Canada, Japan, Europe, Asia- Pacific
Markets for Years 2003, 2010 & 2017 (includes corresponding
Graph/Chart) 51

Table 12: World Recent Past, Current & Future Analysis for
Ramp Handling Service Type by Geographic Region - US, Canada,
Japan, Europe, Asia-Pacific (Excluding Japan), Latin America,
Middle East and African Markets Independently Analyzed with
Annual Revenues Figures in US$ Millions for Years 2009 through

Table 13: World Historic Review for Ramp Handling Service Type
by Geographic Region - US, Canada, Japan, Europe, Asia-Pacific
Graph/Chart) 53

Table 14: World 15-Year Perspective for Ramp Handling Service
Type by Geographic Region - Percentage Breakdown of Dollar
Revenues for US, Canada, Japan, Europe, Asia- Pacific
Markets for Years 2003, 2010 & 2017 (includes corresponding
Graph/Chart) 54

Table 15: World Recent Past, Current & Future Analysis for
Others Service Type by Geographic Region - US, Canada, Japan,
Europe, Asia-Pacific (Excluding Japan), Latin America, Middle
East and African Markets Independently Analyzed with Annual
Revenues Figures in US$ Millions for Years 2009 through 2017

Table 16: World Historic Review for Others Service Type by
Geographic Region - US, Canada, Japan, Europe, Asia-Pacific
Graph/Chart) 56

Table 17: World 15-Year Perspective for Others Service Type by
Geographic Region - Percentage Breakdown of Dollar Revenues
for US, Canada, Japan, Europe, Asia- Pacific (Excluding
Japan), Latin America, Middle East and African Markets for
Years 2003, 2010 & 2017 (includes corresponding Graph/Chart) 57



10. THE UNITED STATES 58
A.Market Analysis 58
Outlook 58
The US Ground Handling Market 58
US Airlines Outsource Aircraft Maintenance to Latin America 58
Service Introductions 59
Recent Industry Activity 59
Key Players 61
B.Market Analytics 63
Table 18: US Recent Past, Current & Future Analysis for
Airport Airside Services by Service Segments - Ramp Handling
and Others Independently Analyzed with Annual Revenues in
US$ Million for Years 2009 through 2017 (includes
corresponding Graph/Chart) 63

Table 19: US Historic Review for Airport Airside Services by
Service Segments - Ramp Handling and Others Independently
Analyzed with Annual Revenues in US$ Million for Years 2003
through 2008 (includes corresponding Graph/Chart) 64

Table 20: US 15-Year Perspective for Airport Airside
Services by Service Segments - Percentage Breakdown of
Dollar Revenues for Ramp Handling and Others for Years 2003,
2010 & 2017 (includes corresponding Graph/Chart) 64

11. CANADA 65
Outlook 65
Table 21: Canadian Recent Past, Current & Future Analysis
for Airport Airside Services by Service Segments - Ramp
Handling and Others Independently Analyzed with Annual
Revenues in US$ Million for Years 2009 through 2017

Table 22: Canadian Historic Review for Airport Airside
Services by Service Segments - Ramp Handling and Others
Independently Analyzed with Annual Revenues in US$ Million
for Years 2003 through 2008 (includes corresponding
Graph/Chart) 67

Table 23: Canadian 15-Year Perspective for Airport Airside

12. JAPAN 68



Outlook 68
Market Overview 68
Key Catering Service Provider 69
Table 24: Japanese Recent Past, Current & Future Analysis

Table 25: Japanese Historic Review for Airport Airside
Graph/Chart) 70

Table 26: Japanese 15-Year Perspective for Airport Airside

13. EUROPE 71
Outlook 71
Overview of European Aviation Industry 71
Table 27: Top 10 European Airlines Ranked by Number of
Passengers (2009) (includes corresponding Graph/Chart) 71
Airline Market Liberalization 71
The Council Directive 96/67/EC - Enforcement of Competition 71
Provisions of the European Union Directive 96/67/EC (1996) 72
Transition from Monopoly to a Liberalized Market - Not a
Straight Forward Journey 73
Council Directive Achieves Success - Brings Down Monopoly 73
Assessing Policy Impact - The SH&E Survey, 2002 73
A Smaller Impact of the Policy on the Overall Aviation Sector 74
Current State of the EU GHS Market 74
Analyzing Economic Factors affecting Ground Handling
Industry in Europe 74
Porter's Five Force Framework for European Ground Handling
Market 75
Overview of Liberalization in the GHS Market in EU (2007) 75
Competition Levels Enhanced 76
Table 28: Comparative Assessment of Competition Levels in
EU GHS markets (1996 , 2002 & 2007) (includes
Changes in Market Shares of Stakeholders 77



Handling Prices Moderated 77
Quality Levels Enhanced 77
Contestable Market Expands 77
Airport Operators Lose Ground 77
Self-handling Airlines Restricted to their Hubs 78
Centralized Infrastructure Becomes Costlier 78
The Say of Airport Users' Committees (AUC) 78
Tendering Procedure Continues for Issuing of Licenses 79
The Trend of Sub-Contracting Continues 79
Number of Safety Issues Increased with the Introduction of
Directive 79
Employee Working Conditions Improve 79
M&A Activity in the European Ground Handling Industry 79
Table 29: Highlights of the European Ground Handling
Industry M&A Activity for the Period Between 2001 and 2008 79
Ground Handling Companies in Europe Ranked by Turnover (2007) 80
Select Regional Analysis 80
Germany 80
Ground Handling in Germany on the Path of Transformation 80
Poland 81
GHS Market in Poland Opens Up for Third Party Handlers 81
Russia 81
The Russian Aviation Industry 81
Russia - A Potential Market for Ground Handlers 82
Russian Ground Handling Market - Opportunities and Threats
for New Entrants 82
Key Players 89
Table 30: European Recent Past, Current & Future Analysis

Table 31: Europe Historic Review for Airport Airside
Graph/Chart) 96

Table 32: Europe 15-Year Perspective for Airport Airside
Services by Service Segments - Percentage Share of Dollar
Revenues for Ramp Handling and Others for Years 2003, 2010 &

14. ASIA-PACIFIC 97



Outlook 97
Asia-Pacific Witnesses Unprecedented Rise in Air Traffic 97
Fixed Base Operations (FBO) in the APAC 97
Number of Fixed Based Operators for Business Jets to Rise
in Asia-Pacific 98
Asia-Pacific - FBO Market Trends 98
China 98
Singapore 99
Malaysia 99
Hong Kong 99
South Korea 99
Indonesia 99
Table 33: Asia-Pacific Recent Past, Current & Future
Analysis for Airport Airside Services by Geographic Regions -
China and Rest of Asia-Pacific Independently Analyzed with
Annual Revenues in US$ Million for Years 2009 through 2017

Table 34: Asia-Pacific Historic Review for Airport Airside
Services by Geographic Regions - China and Rest of
Asia-Pacific Independently Analyzed with Annual Revenue
Figures in US$ Million for Years 2003 through 2008 (includes

Table 35: Asia-Pacific 15-Year Perspective for Airport
Airside Services by Geographic Regions - Percentage
Breakdown of Dollar Revenues for China and Rest of
Asia-Pacific for Years 2003, 2010 & 2017 (includes

Table 36: Asia-Pacific Recent Past, Current & Future
Analysis for Airport Airside Services by Service Segments -
Ramp Handling and Others Independently Analyzed with Annual
Revenue Figures in US$ Million for Years 2009 through 2017

Table 37: Asia-Pacific Historic Review for Airport Airside
Independently Analyzed with Annual Revenue Figures in US$
Graph/Chart) 103

Table 38: Asia-Pacific 15-Year Perspective for Airport
Airside Services by Service Segments - Percentage Breakdown
by Dollar Revenues for Ramp Handling and Others for Years
2003, 2010 & 2017 (includes corresponding Graph/Chart) 103



14a. CHINA 104
Outlook 104
Table 39: Chinese Recent Past, Current & Future Analysis for

Table 40: Chinese Historic Review for Airport Airside
Graph/Chart) 106

Table 41: Chinese 15-Year Perspective for Airport Airside

14b. REST OF ASIA-PACIFIC 107
Outlook 107
Select Regional Analysis 107
India 107
Overview of the Indian Ground Handling Market 107
The Proposed Ground Handling Policy 108
Approved Ground Handlers Operating at Five Major Airports
in India 108
Increasing Low Cost Carriers Boost Ground Handling Market 109
Singapore 109
Key Players 112
Table 42: Rest of Asia-Pacific Recent Past, Current & Future

Table 43: Rest of Asia-Pacific Historic Review for Airport
Airside Services by Service Segments - Ramp Handling and
Others Independently Analyzed with Annual Revenues in US$
Graph/Chart) 115



Table 44: Rest of Asia-Pacific 15-Year Perspective for
Airport Airside Services by Service Segments - Percentage
Share of Dollar Revenues for Ramp Handling and Others for
Years 2003, 2010 & 2017 (includes corresponding Graph/Chart) 115

15. LATIN AMERICA 116
Outlook 116
Tremendous Growth Projected for Brazilian AAS Market 116
Key Player 117
Table 45: Latin America Recent Past, Current & Future

Table 46: Latin America Historic Review for Airport Airside
Graph/Chart) 118

Table 47: Latin America 15-Year Perspective for Airport
Airside Services by Service Segments - Percentage Share of

16. THE MIDDLE EAST 119
Outlook 119
Airports and Aircraft Fleet to Expand in ME, Driving Growth
for Service Providers 119
Key Players 122
Table 48: Middle East Recent Past, Current & Future Analysis

Table 49: Middle East Historic Review for Airport Airside
Graph/Chart) 124



Table 50: Middle East 15-Year Perspective for Airport
Airside Services by Service Segments - Percentage Share of

17. AFRICA 125
Outlook 125
A Brief History of Nigerian Ground Handling Industry 125
Table 51: African Recent Past, Current & Future Analysis for

Table 52: African Historic Review for Airport Airside
Graph/Chart) 127

Table 53: African 15-Year Perspective for Airport Airside
Services by Service Segments - Percentage Share of Dollar
Revenues for Ramp Handling and Others for Years 2003, 2010 &

COMPETITIVE LANDSCAPE

Total Companies Profiled: 186 (including Divisions/Subsidiaries - 195)

------------------------------------------
Region/Country Players
------------------------------------------
The United States 39
Canada 7
Japan 2
Europe 67
France 7
Germany 9
The United Kingdom 10
Spain 4
Rest of Europe 37
Asia-Pacific (Excluding Japan) 56
Latin America 2
Africa 8



Caribbean 3
Middle East 11
------------------------------------------


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