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Competition versus quality
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Aviation Safety Initiative
Open competition among aircraft handlers: quality suffers
In 1996 the EU passed a new directive to open up the market for aircraft handling service providers. The goal was to promote competition, reduce costs for airlines and improve the quality of services. Has this happened?
In theory: the EU demands high standards for ground handling
On the one hand, this bottleneck could be avoided by building new airports or expanding existing ones.
On the other hand, says the EU report, efficient ground handling services would increase the throughput of existing airports, permitting more aircraft to be handled within a shorter time.
Goal: making quality the priority
To ensure that this happens, the quality must be the top priority for all ground handling service providers, as stipulated in the EU Directive. This requires above all an appropriate, standardized training program.
Regulation does not mean that the opening up of competition should put people at risk. It means achieving the right balance of price, performance and quality so that healthy and fair competition results.
Regulation does not mean that the opening up of competition should put people at risk. It means achieving the right balance of price, performance and quality so that healthy and fair competition results.
In practice: price is more important than quality
The reality is different. Across Europe, ground handlings are embroiled in fierce competition for hotly contested market share. These battles are fought mainly on the basis of price, with quality generally playing a subordinate role.
Established providers must adapt their structures and adjust the time-tested training and quality standards downward to compete successfully. New providers can usually gain market share only by offering attractive prices and are increasingly relying on cheap, inadequately trained personnel.
Established providers must adapt their structures and adjust the time-tested training and quality standards downward to compete successfully. New providers can usually gain market share only by offering attractive prices and are increasingly relying on cheap, inadequately trained personnel.
Collective agreements contradicts EU goals
There is no binding regulation on the qualification of aircraft handlers at the EU level. There is such a regulation at national level in Germany, in principle – the so-called Ground Handling Services Ordinance (BADV). However, the detailed provisions have not been finalized and compliance is not monitored.
The IHK certification exams in Germany are a voluntary national standard, but so-called third party service providers do not carry them out.
Recently a collective agreement for aircraft handlers was signed that actually no longer requires any training so that providers can face up to the predatory competitive environment. This contradicts the stated objectives of the EU.
The IHK certification exams in Germany are a voluntary national standard, but so-called third party service providers do not carry them out.
Recently a collective agreement for aircraft handlers was signed that actually no longer requires any training so that providers can face up to the predatory competitive environment. This contradicts the stated objectives of the EU.
The result: a loss of trust among passengers
This knowledge leads to serious uncertainty among passengers. This may cause a loss of trust in air travel, which is statistically the safest mode of transport.
