WORLD ANALYSIS
ASIA SPECIFIC
Felicity Stredder shines the spotlight on ground handling
in the Asia Pacifi c region as we enter 2020.
That 2019 was a challenging year for
the ground handling industry is a
popular opinion. Between China and
the US waging a tari war on each other’s
economies and the ongoing slump in air
cargo performance, operating conditions
were far from optimal. Furthermore,
IATA reported that the former dispute
has contributed to a disappointing 4.5%
overall growth in passenger tra c for Asia
Paci c airlines in 2019 – a considerable
decline from the growth of 2018. As
2020 gets underway, there is a glimpse of
reprieve, however, as the region’s handlers
report.
Broadly speaking
Regional CEO Asia Paci c for dnata,
Dirk Goovaerts, points to a broadly
slowing economy in the region. “In 2019,
several airlines adjusted their operations
by suspending routes and decreasing
frequencies on services. Having said that,
Swissport launched its fi rst
cargo operation in Australia
this year, at Melbourne airport
manufacturing centre of the world and revenues from
transporting many of those goods are a signi cant
proportion of sales for many of the region’s airlines,” he
asserts. Manufacturing, among other industries in the
region, has taken a hit following the recent outbreak
of the Chinese coronavirus, of course, which is also
signi cantly a ecting air cargo and passenger tra c in
and out of the region – but Key is con dent that Menzies’
signi cant presence across the Asia Paci c region will
enable it to adapt to market uctuation.
Continuing with cargo, Stewart Sinclair, Managing
Director – ailand, Bangkok Flight Services, reports
that BFS saw its export volumes drop in 2019, “down by
around 15% compared to 2018, even though we retained
all of our existing customers and added seven new
customers during the year,” he relates. BFS did experience
growth on the ramp and passenger side, however, seeing
around a 7.8% increase in ights. In a similarly positive
vein, Swissport’s Executive Vice President – Asia Paci c,
Glenn Rutherford, currently observes a continuation of
strong demand from Southeast Asia to Northeast Asia,
which he says is o setting reduced business to and from
Hong Kong and the politically driven lower demand
low cost airlines have
expanded operations in
the region.” e latter,
he suggests, is evidence
of customer preferences
changing.
Menzies Aviation’s
Stuart Key, SVP Sales &
Commercial Operations
- Oceania & South East
Asia, attributes the
tough conditions of 2019
predominantly to so ening
passenger numbers, which
he says were down 3% on
2018, while cargo yields
were down 5%; however,
he also ags up IATA’s
forecast that Asia Paci c
carriers will bene t from
modest recovery in world
trade and air cargo in
2020. “Asia remains the
20 February 2020 Ground Handling International