Air Cargo Newsdesk

Demand for ground handling services set to take off

Demand for ground handling services set to take off

CHINA’S thirst for air travel is fuelling the global ground handling services market, which is projected to generate revenues of US$32 billion by 2023, new research reveals.

Home to 1.4 billion people, the world’s most populous country is enjoying an accelerated rise in outbound air passengers and the opening of new routes, buoyed by a strong economy and growing middle-class population.

Furthermore, the increasing popularity of tourism and leisure activities across countries such as Myanmar, Vietnam and South Korea will also have a positive impact on the development of the ground handling market over the next few years, where growth is determined by increasing numbers of domestic and international passengers, as well as cargo, forecasts a new report published by market research publishers RnR.

Airports are the nucleus of operations for cargo handlers, baggage handlers, ground services, ramp handling and other such services, hence the increasing investment by aviation ministries across the world in upgrading facilities and infrastructure, writes Thelma Etim.

Meanwhile, new technologies and other innovations are being utilised to harmonise communication and operating standards between airports, airlines, the ground handlers, baggage screening, sorting and tracking, and ground support equipment pooling (GSE).

Europe was responsible for more than one third of the total global ground handling market share in 2017

The upturn in the airfreight industry correlates with the upswing of global trade and is contributing to the growing revenues in the global ground handling services market, whilst increasing demand for perishable goods, pharma shipments and e-commerce-driven parcels services are fuelling new demand for cargo and ramp handling.

Geographically, Europe was responsible for more than one third of the total global ground and cargo handling market share in 2017. China, Japan, South Korea and India are the largest revenue generators in the Asia-Pacific market, notes the report.

The intensity of the competition in the global ground handling services market is also resulting in these businesses offering a number of additional services, including aircraft maintenance, the movement of crew and passengers between the terminal gates and the aircraft, flight operations, and crew administration. Some players are also providing services to charter airlines at the executive terminals, including ‘meet-and-greet’ for business travellers.

Swissport International, Dnata, Menzies Aviation and Worldwide Flight Services (WFS) are currently the top four companies operating in the ground handling market, reveals the report.

Other prominent businesses include Bird Group, Celebi Aviation, SATS, Aviapartner, BBA Aviation, DHL, Fraport, Glamco Aviation, Primeflight Aviation and Havas.

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