I will be using Singapore’s Changi Airport to comparewith different models around the world.
In Singapore, Changi Airport uses Third-party groundhandling model for their airlines. The two main ground handling companies willbe SATS (Singapore Airport Terminal Services) and Dnata (Dubai National AirTransport Association). This two companies have been very competent to servethe airlines at Changi Airport for over the years. In a recent report bychannelnewsasia, SATS introduces augmented reality (AR) glasses across theirramp handling operations. With the help of these smart glasses, the staffs areable to scan the visual markers which in a way is similar to QR codes onbaggage and cargo containers.
This will improve the efficiency of baggage andcargo 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 waitingtimes for their flights, which will then improve the efficiency and reputationof Singapore’s carriers and Changi Airport. This shows that how Third-party groundhandling company is keeping up with technology to bring a better and seamlessexperience for airlines, which benefited Singapore in comparison to othercountries.
On the other hand, this two companies have been very competitiveagainst 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 handlingcompanies. It stated that they have fought for contracts to service airlineshere. They were willing to lower their rates down by 30 percent which willlower their profits. Airlines are taking advantage of this by negotiatingharder for better contracts with SATS and dnata. This will naturally reduce thecosts of air travel for passengers where airlines can lower their cost ofproduction. Eventually, making Changi Airport a successful airport.
However,having Third-party ground handling companies is not always good. An examplewill be what if SATS and dnata turn collusive, as there is no guarantee thatsuch competitive behaviour between them will last for long term. This wouldresult airlines and consumers losing out. Hence, in Singapore, CompetitionCommission of Singapore (CCS) will be responsible that this does not occur to safeguardthe interest of airlines and consumers.