Safe service the way ahead For Rich dePastino of DAL Global Services, 2007 was a profitable year for the handler. “We added a significant number of new contracts in our current locations, along with more full handling opportunities with low cost carriers in new locations.” In line with this expansion DAL also acquired substantially more GSE in 2007. Rich mentions that he makes use of a staff recruiter at the larger locations but that working for DAL is regarded as a sound move and that the company offers a number of benefits to staff: hence there is a lot of activity. “We want to continue delivering a safe, reliable, always improving service to our customers as the year unfolds,” he concludes. Perfecting the product For Air Terminal Service’s Sally Leible, the last 12 months have been one of extraordinary growth for her company. “For the first time in recent memory, we have “slowly slowed” our bid responses in order to perfect the new business we have taken on,” she relates. During that process, significant investment in GSE was made. From a green perspective, ATS has introduced several LPG programmes at stations where authorities have permitted such developments. “Additionally, we have tested an electric tug with very satisfactory results and hope to begin introducing this unit in 2008. On the general topic of fuelling, while a great deal of attention has been paid to the soaring cost of fuel for the GHI APRIL 2008 25 airlines, ATS has experienced significant increases in fuel price and consumption. As our customers work diligently to decrease their fuel spend, we have seen much greater use of ground power that had resulted in meaningful increases in our fuel consumption.” The handler has invested heavily in station HRGs, (Human Resource Generalists) in order to enhance the overall employee experience. “We know that employees have a choice when they look for employment opportunities at the airport, and ATS is dedicated to the belief that we can become the employer of choice by ensuring firstly that we enhance the employee brand in the community in which we are hiring and secondly, by providing employees a quality on-boarding experience with professional orientation and training. Moreover, we have developed a formal so-called ACE programme (ATS Champion Employee) to mentor our employees in the early weeks of their Training has been top of the agenda at the ATS operation. PASSENGER SERVICES RAMP HANDLING AIRCRAFT CABIN CLEANING CARGO SERVICES AIRCRAFT FUELLING CORPORATE OFFICE, 111 Westport Plaza Drive, Suite 400, St. Louis, Missouri 63146, PH: 314.739.1900, FX: 314.739.7070 www.atsstl.com At 37 airports in the United States and Canada, ATS delivers customized services from the ground up to meet airlines’ specific needs and critical schedules. We are an independent company committed to delivering quality services to the aviation industry by maintaining the highest levels of safety through our working practices and the skills and commitment of our highly-trained workforce. We pride ourselves on a focused service which recognizes the unprecedented competitive and financial pressures faced by the industry these days. For airlines requiring a global dimension to ground handling services, we can respond through our membership of Aviance, a powerful alliance of independent services, combining local expertise with the sum total of our resources worldwide. We always remember that it’s not just our reputation that’s at stake here. It’s yours too. Your reputation is safe with ATS

26 APRIL 2008 GHI employment. Added to that we ensure that we create a safe, fun and respectful work environment.” Sally reports that in terms of handling outsourcing, carriers present a disunited front. “We have seen some airlines actually return to in-sourcing or self-handling. I find this a little perplexing, as I would think all of the carriers, both network and/ or low cost, would be dramatically focused on the challenges of finding the balance of load factor, capacity and ancillary revenue. While clearly self-serving, I would think the ground handling community can provide the necessary solutions and prevent airline management from any distractions that are inherent with managing workforces, such as recruitment and retention, scheduling, safety and worker compensation, as well as competing for capital requirements within the airline. “In the outsourcing environment, we still find a robust opportunity in the markets we serve and are confident these opportunities can meet our organic growth goals. The challenge in 2008 is to continue to focus on providing increased value to our partners by remaining a low cost and high quality provider. Of course, that is always a very difficult formula and we strive to seek improvements every day.” New contracts across operation “Back in 2007, our North American cargo and passenger divisions had good results in terms of operating performance,” says Worldwide Flight Services’ John Vittas, Senior Vice President Strategic Planning and Customer Care. “When we spoke with Ground Handling International last year at this time, we noted the mid-year 2006 award of Northwest Airlines’ ramp and passenger handling business at locations throughout the US and the positive impact that would have on our performance going into 2007. Last year marked the first full 12 months of service and the positive expectations we had were fulfilled with both companies, WFS and NW, benefitting from this business relationship that spans 24 locations in the US. “We were also awarded ramp and passenger handling contracts for Iberia Airlines and Qatar Airways at Washington DC last year, as well as Lufthansa’s ramp handling business at Dallas Fort Worth. In addition, we successfully renegotiated our ramp handling contracts with British Airways at our five US locations. “Our cargo division also fared well but not without some significant challenges. Two of our airline customers, Kitty Hawk and Maxjet, ceased operations, which affected our operating performance at several locations. Additionally, in early 2007, we advised our airline customers that with effect from March 1, 2007, we would we begin to assess a security surcharge applicable to export tonnage to compensate us for the increased costs of implementing and maintaining cargo security programmes in compliance with TSA regulations. Our initiative, in a very few cases, was not met with great enthusiasm and rather than jeopardise or risk our ability to have sufficient resources available to maintain a compliant, safe and secure cargo operation, we decided in those few cases to part ways. Again, I would hasten to add that this was the exception and not the rule and the majority of our customers have agreed with the position we have taken.” He adds that on the positive side, in conjunction with the award of the ramp and passenger handling contracts by Iberia and Qatar, WFS was also awarded the cargo handling business, making it the carriers’ full service provider at Washington DC. “Perhaps our biggest push in 2007 was related to the US Postal Services’ solicitation for SNET handling services in the US. We worked diligently in preparing our response to the USPS and were recently rewarded with awards for services in 11 locations including Los Angeles, a new USPS location for WFS and a major one at that. The USPS also awarded us Commercial Mail Handling contracts in three locations: Charlotte, Columbus and Los Angeles, in addition to our SNET awards. “Over the past year we have invested in various types of ground service equipment, including some more major acquisitions of passenger stair trucks as well as three de-icing vehicles. Of particular note is the acquisition of a new ground service unit called an Ambistair, which is designed to provide lift capabilities for PRMs. We have placed two of these units in our Colorado ski city locations and we believe we are the first ground handling company in the US to acquire these units. “A greater indicator of our level of investment in equipment is seen in our efforts to provide our cargo personnel with the appropriate tools to screen cargo shipments. Towards that end, we have installed state-of-the-art X-ray machines at five of our facilities and more will be ordered as necessary. In addition, we have embarked on a physical facility security renovation programme, designed to enhance our cargo warehouse security in many aspects. These investments are in line with TSA directives and are just some of the steps we have taken, and will take, to be fully prepared for 100% screening, which is now just two years away.” WFS added a Director of Cargo Security and Compliance to its payroll last year in North America, which is indicative of the importance attached to this area. In respect of GSE, John has an interesting comment. “We continue to research, demonstrate and acquire equipment that utilises alternative forms of fuel and heading into 2008, we expect to escalate our efforts, both for the obvious cost-saving reasons as well as the need to conform to applicable emissions standards.” Training has not stood still, either. The most notable development for WFS was in the implementation of a dedicated training department for each of its operating divisions, namely passenger and cargo. Useful contracts with the US postal service gave a boost to WFS’s stock last year.