Centrally selected GSE
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Posted Date: 15/09/2008
Issue: Airside International September 2008
Publication: Airside International
AI Many of your recent announcements pertain to cargo handling contracts won in Europe. Does this success impact upon your current and future ground support equipment acquisition plans? To what extent do clients dictate GSE purchasing and to what extent can you forecast GSE needs and stick with those plans?
AC We have also won many passenger/ramp handling contracts such as Lufthansa in Venice, Air One in Milan-Malpensa, KLM in Marseille, Nice and Toulouse.
Our consistent growth means that we continuously purchase GSE. In our yearly budgeting process we forecast what we think we will spend on GSE based on the estimated growth in business and the needs for fleet replacement. Any growth on top of this forecast will require additional GSE as well, of course, and this will be put against the additional revenue which will be generated.
Our clients do not necessarily dictate what we purchase. In the negotiations for a new contract they might have a look at our existing fleet in a given station and perhaps mention that we might need an additional unit of a specific type of GSE “to be on the safe side”. But they certainly don't look at brand or types.
AI Do you purchase GSE centrally to achieve economy of scale or do your various stations have a GSE budget? Is there a rolling investment programme in place or is all GSE acquisition ad hoc?
AC Yes we purchase GSE centrally. But each station has a budget which they are allowed to spend according to the forecast. But the ordering and purchasing is coordinated centrally.
And yes there is a rolling investment programme per station which is negotiated between the local station manager and the fleet manager. Next to that there is ad hoc GSE for new business.
AI Do new aircraft types affect your buying decisions? Obviously the A380 is a challenge in terms of size and power requirements, but the 787 may have its own power challenges and then there is the A350. Have you GSE plans in place for any new demands brought about by aircraft manufacturers or do new aircraft types require a rethink?
AC We do not speculatively purchase GSE to be "prepared" for a new type of aircraft. If we win new business flown with a new type of aircraft we will evaluate the profitability of this business against the cost involved (GSE, additional staff, etc).
AI How do you manage the aftermarket support of GSE? Apart from manufacturers' warranties, do you have your own Technical Services Department to undertake GSE and ULD maintenance and support?
AC In some stations of our network we have our own maintenance shop and in others we subcontract maintenance to a local provider. This depends on the size of the station, airport infrastructure, and sometimes it is for historical reasons.
AI How do you manage the cost of acquisition and ownership? Do you seek innovative financing in terms of tax-based financing, rental and leasing or do you prefer outright purchase?
AC We do both (leasing or outright purchasing) depending on the environment, the situation at the time and the level of spend.
AI What is your training policy? Do you use simulation for vehicle training or is all coaching hands on?
AC We do not use vehicle simulators, only hands on. But we simulate turnarounds without aircraft for this training.
AI Have you implemented IT systems to monitor and track GSE so that you can plan resources and keep costs down? Is equipment planning as important as human resource planning and rostering? Where is your innovation in this area?
AC Yes, we are actually now in the process of implementing a system from the company proveo. We have entrusted them with the installation of the Airport Visualiser at stations like Brussels, Munich, Lyon, Marseille, Nice, Milan-Malpensa, Rome Fiumicino, Dusseldorf, Venice and Amsterdam.
Among the various modular Airport Visualiser features we will be using the Airport Map for an overview of the apron fleet and relevant information related to individual units, for example a GSE’s operation status. Furthermore, proveo will be installing the Access Control feature to stop unauthorised use of the GSE and helping to reduce damage to the equipment. proveo’s Impact Sensor will be shedding light on accidents or any other kind of collision involving the GSE by recording the incident, including such vital details as time, place and name of driver.
This will help us optimise the utilisation of our GSE fleet. With the increasing oil prices, fuel costs have become a major issue. The Airport Visualiser will help us control our fuel expenses and thus reduce our carbon footprint. Moreover, the system will enable us to minimise the number of accidents and repair costs. While reducing unnecessary engine hours we will win on maintenance costs, on expenses for repairs (wear and tear) and of course fuel costs. By identifying excess equipment we should be able to reduce investment and optimise equipment costs in general.
As far as the management of maintenance is concerned, we have an in-house system in some stations, and in other stations, the supplier to which we outsource our maintenance manages that.
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