Demand for air travel took a severe hit in the first year of the COVID-19 crisis, dropping by as much as 100% worldwide. However, the industry has shown some signs of recovery one year later, though yet to return to pre-pandemic levels. Such a trend isn’t unusual, as people would want to go places after years of quarantine.
Busy airports and frequent flights are good news for the aircraft ground handling sector. There’ll be more work for check-in officers, customer service personnel, air marshals, and ground crews. More importantly, the companies providing their services will benefit from this growth. Here are several reasons now may be an excellent time to get into the aircraft ground handling business.
Improving Airport Operational Efficiency
Operational efficiency refers to an airport’s performance in managing activities related to cost and revenue. Relevant metrics include (but aren’t limited to):
- Workforce size
- Number of gates
- Number of operational runways
- Total number of passengers
- General aircraft movements
Modern airports have emphasized enhancing operational efficiency in recent years, particularly during the pandemic. Case in point: Turkey’s Istanbul Grand Airport was widely touted mainly for setting up an environment that fosters innovation in civil aviation. Ground crews and agents equipped with state-of-the-art tools can reduce wait times and increase aircraft handling capacity.
This emphasis has, in turn, led to increased investments in relevant sectors, especially the ground support equipment (GSE) market. The full report here estimates that the GSE market is poised to grow by 8.8% in five years, eventually reaching USD$22 billion (GBP£17.5 billion) by 2027. The more the airport expands, the more equipment it’ll need to field.
Outsourcing Maintenance, Repair, and Overhaul (MRO)
Even as modern passenger aircraft mostly look the same as their predecessors in the 1950s and 1960s, the technology used in building them has come a long way. Avionics and alloys, among other things, have become sophisticated and will continue to do so. It’s a welcome development, but it also introduces new challenges for airports, namely in MRO.
As essential as MRO may be, it’s usually not a part of an airport’s key strategy. As such, they outsource these functions to third-party service providers. Recent statistics support this trend, with the global MRO sector to grow to USD$100 billion (GBP£80 billion) in 2026. Experts attribute the growth to the retirement of pre-2000s models in service and air fleet expansion.
As fixing aircraft is their core service, MRO services typically feature an impressive loadout of GSE equipment examples. These range from digital check gauges to heavy-duty wheel changers, which also come with service support from manufacturers. By leaving such activities to technical providers, airports can focus on more pressing matters.
Adopting Electrification Solutions
For years, climate change has been at the heart of discussions on airport operations. Recent plans to expand several airports have met strong opposition from environmental groups, arguing the risk of increasing carbon emissions. These challenges come amid research stating that airports account for only 2% of total emissions contributed by air transport.
In light of this, airports search for ways to lower their carbon footprint while allowing for future expansion. Simple changes like switching to LED lighting, which Belfast International Airport did this year and received level 2 reduction accreditation, are game-changers. However, the list of ways goes beyond energy-efficient lamps.
Lately, there’s been an increase in demand for fielding electric GSEs to help ground handlers reduce dependence on fossil fuels. For instance, towing vehicles tend to run idle while waiting for aircraft needing service. Swapping their powerplants with an electric battery can eliminate emissions from idling entirely.
Experts estimate that the annual savings from the electrification of an airport’s towing vehicle fleet can reach GBP£2,388 per unit. While most solutions still use older lead-acid technology, lithium-ion power is expected to increase performance for a reduced operational cost. Every pence a ground handling business can save can go to revenue.
Increasing Backlog In Aircraft Production
Aircraft ground handling isn’t just active in airports; it also sees use in aircraft manufacturing facilities. Multiple factors, including a rise in passenger traffic and inflation, have pushed the timetable for new airframes by nearly a decade.
Facilitating aircraft production requires the right equipment on hand. The GSEs and handling procedures that manufacturers use don’t differ much from those in use by airports, making the former a prime market for ground handling businesses.
Conclusion
With countries slowly reopening their borders, airports will undeniably get busier. The influx of passengers and cargo will likely be at levels never before seen since the lockdowns. As flights will be hard at work, they’ll need the proper support on the ground to keep them going.
