Monday Musings: Ground Services, Common Sense, and Cold Truths

It was one of those grey Mondays when you wake up wishing it was still Sunday, but no such luck. Dragging myself out of bed, I took Mojo for her morning walk. True to form, she barked at everything: people, birds, and possibly even ghosts. I must have muttered “sorry” at least ten times. As I stood there, awkwardly apologising to strangers, I found myself thinking, “They say dogs are like their owners. Am I really like Mojo? Nah, couldn’t be.”

After finally making it to the office, I checked in with the team to see how everyone’s weekend went (no meetings today, lucky for them) and let them know where to find me if they needed anything. With everyone in good spirits, I dived into my inbox. While scrolling through the news, I stumbled across William Hallowell interview with Warwick Brady , Swissport in ARGS, www.airlinergs.com - His comments really got me thinking, seriously? But I held off posting my thoughts until today. So, here we are.

“Airlines are pushing for lower prices and longer payment terms, which is damaging the industry”.

Our job is to invest in people, pay fair wages, and use electric equipment and technology to deliver safe and reliable services at competitive costs. But with more air traffic disruptions and weather challenges than ever, ground handlers are facing higher costs. Meanwhile, airlines keep cutting budgets, which isn’t sustainable if we want the industry to grow.”

He’s absolutely right. But it made me wonder: why is the ground services sector always stuck in this losing battle?

Now, I am no expert in ground services, but from what I have been told, it seems like the ground services industry might be overlooking a few basics.

The Race to the Bottom

Ground service providers (GSPs) are often their own worst enemies. Instead of showing airlines how valuable they are, they let procurement teams drag them into a price war. When everyone focuses only on being the cheapest, quality takes a back seat.

The result? Airlines don’t see the difference between one service provider and another. If GSPs don’t position themselves as unique, they become just another commodity. And commodities don’t get rewarded, they get put into bidding wars where only the lowest offer wins.

But not everyone plays this game. Look at Worldwide Flight Services (WFS) in France, they bundled cargo handling, trucking, and airport operations into a single service that airlines couldn’t resist. That’s what we need more of: smart, standout strategies.

The Fear of Saying “No”

It seems like GSPs are scared to walk away from bad deals. Sure, losing a contract isn’t fun, but agreeing to terms that don’t allow you to deliver quality service is worse. How can you invest in your team, upgrade technology, or ensure safety when you’re barely breaking even?

Price vs. Value

Here’s where things get a little messy, like turbulence during beverage service. Airline procurement teams often zero in on cost, forgetting to look at the bigger picture. Sure, trimming prices might feel like a win at first, but it often leads to understaffed teams, neglected equipment, and, let’s face it, grumpy employees. And when frontline staff feel undervalued, it shows.

Now, here’s the kicker: airlines love to talk about investing in the passenger experience. They attend all the big events, unveiling grand plans about enhancing it. But let’s be honest, shouldn’t that experience begin at check-in? A warm welcome from ground staff and a friendly smile can set the tone for the journey. After all, they say a smile is priceless, right?

The truth is you get what you pay for. Skimping on ground services eventually costs more in the long run, whether it’s through delays, safety hiccups, or passengers tweeting about their less-than-stellar experience. Cheap may sound appealing, but it rarely delivers the smooth ride airlines promise.

People Matter

Ground services is not just about moving luggage or loading planes, they are crucial for safety, efficiency, and the overall passenger experience. Warwick Brady’s point about fair wages isn’t just an ethical stance; it’s a smart business decision. Low wages lead to high turnover, low morale, and, ultimately, poor service.

If airlines truly want to elevate the passenger experience, they need to work more closely with their ground service providers. Technology and innovation are important, sure, but let’s not forget the basics: treating people well. Ground staff are often the first point of contact passengers have with your airline. They represent your brand, your values, and your service.

Investing in their well-being through fair pay and benefits isn’t just the right thing to do, it’s a long-term investment that pays off. A motivated, appreciated team delivers a welcoming, positive experience to passengers, creating happier customers and a healthier bottom line for airlines.

Final Thoughts – Ground Services: Let’s Get Real (and a Little Fairer)

The ground services industry really needs a mindset shift. This isn’t just about who can slap the cheapest sticker on their services. It’s about quality and the hardworking people behind that quality. Airlines, take note: investing fairly in ground services doesn’t just keep things running smoothly; it keeps customers happy. And happy customers are loyal customers, that want to spend more, imagine all the duty free and extra food and drinks they would purchase on the flight, right?

Now, I recently read Henrik Ambak Ambak’s article on LinkedIn: ?https://www.dhirubhai.net/posts/henrik-ambak-27925611_airline-gha-cargo-handling-model-loss-activity-7151528963746459648-xHig?utm_source=share&utm_medium=member_desktop. It dives deeper into these challenges and makes for some excellent reading.

Let’s talk about fairness. Airports and airlines seem to have no trouble passing extra costs on to consumers. Want proof? Post-COVID, UK airports started charging ￡5 for drop-offs. That’s now ￡6. Airlines? They upped baggage fees like it was a sport. But ground service providers? Who do they pass extra fees onto, the baggage carts? The tarmac? Newsflash: they can’t.

So, let’s all play nice. When airports, airlines, and ground service providers work together, everyone wins. And by “everyone,” I mean the entire ecosystem, from the passengers to the ramp agents sweating or freezing out on the tarmac. Fair play isn’t rocket science; it’s just good business sense.

That’s my two cents. Now Henrik’s article worth a read. But let’s try to keep the game fair????