Cost and Performance Benchmarking
A mid-sized North American airport required assistance to understand at a deeper level the cost and performance challenges related to ground handling given negative customer airline feedback.
The airport was challenged by the current performance levels of the incumbent GHAs that was impacting the airports asset utilisation, customer proposition and operational performance.
The client had requested support to develop a ground handling licensing framework to better manage performance against mandated service standards
Whilst the client had fixed its solution on a pre-determined licensing approach, we identified a number of avenues related to performance monitoring, management and improvement that was better placed to solve the immediate term problem.
Via a consultative approach with stakeholders, we identified a number of options based on development of a performance-based culture through transparent expectation management.
Following a broad benchmarking exercise, that included a deep assessment of other global airports in relation to licensing arrangements, pricing benchmarks and airport concession models, we presented a recommendation built on a cross section of best practice and not the hypothesis which the client had originally identified.
Our recommendation was for the client airport to adopt a number of measures and practices that would materially improve ground handling performance, cost of service and alignment with the broader airport strategy.
Additionally, consideration to a tightening of the licensing arrangements at a later stage to build on the preferred primary path that prioritises service and delivery improvements over regulation.