Airside learns how ASC Handling is adjusting its GSE fleet to accommodate shifting priorities in the ground handling industry. Jay Ali, the handler’s procurement chief, highlights the difficulty of considering more sustainable solutions, contingency planning and how he weighs up “value versus efficiency”
How do you evaluate the total cost of ownership when purchasing ground support equipment (GSE), including factors such as maintenance, fuel efficiency and operational lifespan?
The purchase terms are evaluated based on what airport the GSE will be delivered to, as the ground handling licence is different for each airport.
For example, at Heathrow I can’t purchase anything less than five years old in order to obtain a permit for airside use. However, this rule does not apply for our stations in Italy where there is no age restriction for ground support equipment.
Once the GSE has obtained the permit and it doesn’t leave the airport, I am able to utilise the equipment for around 10 to 15 years as long as I have a record of maintenance.
After that period, I have two options. The first is to sell it to a GSE provider. The second is to relocate the asset to our stations which don’t have an age restriction.
Maintenance and fuel efficiency don’t have much bearing on the evaluation, but the lifespan of the asset is important because we try to tie the asset to a commercial contract to eliminate risk.
For example, if an airline gives me an eight-year contract for ground handling I will purchase equipment to serve me for that time period and then relocate old equipment to another station that requires replenished GSE.
If the airline leaves the contract in the fifth year, it will be liable for the cost of the equipment for the remaining three years.
Not all contracts are like that but when an airline demands newer equipment for its aircraft this is a model I use for my evaluation.
What strategies and technologies are you implementing to enhance the sustainability and environmental friendliness of your GSE fleet, considering the aviation industry’s increasing focus on reducing carbon emissions?
Manufacturers have been brilliant with offering us hybrid and fully electric solutions in terms of sustainable equipment, but we are not in a position to take them on because of the poor infrastructure of the airports.
We don’t have enough charging points to share between all the handlers, which then causes us issues with scheduling and planning for delays, and so on. This is a huge issue.
Cost is another, but not the main one. I’m currently doing a tender for 150 GSE items and only 10 pieces will be electric.
In light of advancements in automation and digitalisation, how are you leveraging smart GSE solutions to improve operational efficiency, reduce downtime and enhance safety in your ground handling operations?
There have been a few GSE assets in the market that help with automation – but they are extremely expensive. These advancements will work best from a pooling perspective, which would allow all handlers to use automated equipment with an affordable price range.
There is one product that helps us to free up three ground personnel because of its ability to load bags into an aircraft with two loaders instead of five. But, generally, we are not interested in automated GSE because, when considering value versus efficiency, they aren’t operationally sustainable.
With the global supply chain challenges, how are you managing the procurement and maintenance of critical GSE components and spare parts to ensure uninterrupted airport operations?
This is a nightmare. Lead times pre-Covid were three to four weeks. Now, we’re talking eight to 10 months in some cases – hence why we have to rely on our contingency equipment to cover interruption.
For example, we might have 14 belt loaders at Heathrow to cover our flight schedule for the week. But we’ll have an extra three belt loaders on standby if required.
These vehicles will be part of our contingency assets, which is not ideal but is required as per airline agreements to ensure we have sufficient equipment. This contingency plan will be the same for all vehicles in our GSE fleet.
How do you assess the compliance of your GSE fleet with evolving safety and regulatory standards, and what steps are you taking to ensure that your equipment is always up to date with the latest industry regulations?
As a ground handler, this is normally done through the airport authorities, who monitor compliance. As you can imagine, these assets are very expensive, so solutions are discussed before an asset is demanded to be taken off airside because of ‘evolving safety’.
For example, again we have 14 belt loaders, which are compliant. Last year there was an accident in a different airport in the UK and a safety alert was issued for belts that have a 1m gap between them and the aircraft, and the belt needs to be decommissioned.
In my case, that would be all 14 belt loaders, leaving me unable to operate. The solution would be to get the manufacturer to bridge the gap with a rod and foam cover, and the problem is resolved at a fraction of the cost it would have taken me to replace all 14 belts with new ones.
We have many examples like this, but a sensible solution is always applicable when it comes to GSE.
What considerations and plans do you have for adapting your GSE fleet to accommodate the evolving needs of the aviation industry, such as the growth of electric and hybrid aircraft, larger aircraft sizes, or changes in passenger demand?
The focus on hybrid options in the UK is far greater than in our other locations, but still not as close to what we should be doing in terms of sustainability as it’s not financially viable.
Since 2022 I’ve noticed a huge change of aircraft models being switched by national carriers, which is having an impact on some of the non-motorised items that are required such as towbars. Other than that, there has not been huge change in the ground handling world.
