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Changi ground handler dnata scouting for acquisitions to fuel growth

SINGAPORE — Three years ago, when aviation industry veteran Mr Mark Edwards — with more than 30 years of experience in some of the world’s busiest airports, including Heathrow, Frankfurt, Munich, Miami, and Bangkok — took over as the chief executive officer of dnata in Singapore, the excitement was all about heading operations for one of the world’s largest ground-handling operators at Changi Airport.

Mr Mark Edwards says stringent guidelines mean staff are always watching the clock at Changi Airport so passengers never have to wait too long to check in. Photo: dnata Singapore

Mr Mark Edwards says stringent guidelines mean staff are always watching the clock at Changi Airport so passengers never have to wait too long to check in. Photo: dnata Singapore

SINGAPORE — Three years ago, when aviation industry veteran Mr Mark Edwards — with more than 30 years of experience in some of the world’s busiest airports, including Heathrow, Frankfurt, Munich, Miami, and Bangkok — took over as the chief executive officer of dnata in Singapore, the excitement was all about heading operations for one of the world’s largest ground-handling operators at Changi Airport.

It took him no time at all to realise what he now carefully puts on record, that operating at Changi, which consistently takes home the crown for the world’s best airport, can be a constant race against time.

“Everybody loves Changi for its focus on customer experience and unparalleled airport services. But, for a service provider at the airport, it is a huge challenge,” said Mr Edwards.

He pointed out stringent guidelines by Changi Airport Group and the Civil Aviation Authority of Singapore to ensure that passengers clear check-in — from the time they join the queue at the counter to receiving their boarding pass — in no more than 10 minutes. Failing which, the two ground handling companies at Changi — Singapore Airport Terminal Services (SATS) and dnata — will be fined.

With airlines increasingly reducing the number of check-in counters at airports to cut costs, and passengers opting for complex itineraries in search of cheaper airfares, Mr Edwards said it can be challenging to manage check-ins within this stipulated time.

“This is an extraordinary standard and unique to Changi. We are monitored 24-7 (and) random passenger surveys at the airport (are conducted),” he said, pointing out that the current manpower crunch is further compounding challenges such as these.

Technology, according to Mr Edwards, will be a game changer in passenger handling services at airports, particularly at the check-in stage.

“We are going to see fewer people at check-in counters and other parts of the airport, and more machines in use,” he said. “To remain relevant, we have to continuously adopt new technology besides value add-ons in our services.”

The company, part of the Emirates Group, has been an operator at Changi Airport for more than three decades, handling support services including baggage services, flight operations, warehousing, in-flight catering as well as passenger and cargo handling. It has more than 1,800 employees managing about 60 airlines and more than 800 flights every week. It accounts for about 20 per cent of Changi Airport’s ground handling market, with SATS controlling the rest.

However, according to Mr Edwards, dnata manages 50 per cent of the non-Singapore Airlines Group market.

Given limited organic growth opportunities in Singapore, Mr Edwards said, dnata is looking for acquisition opportunities in Singapore and the region, including in Indonesia, Malaysia, Vietnam and Thailand. This is also in line with its Dubai-based parent’s aggressive growth strategy to cement its position in airport operations and travel services space.

Emirates Group recently acquired Belgian company Aviapartner’s cargo-handling operations at Schiphol Airport in Amsterdam after the acquisition of a majority stake in the United Kingdom-based cruise travel agency Imagine Cruising earlier this year.

“For us nothing is too small or too big, and there is no set formula,” said Mr Edwards. “As long as it is a strategic fit and is profitable, we will look at it … There are tremendous growth opportunities in the region, led by China and India. With airlines in Indonesia and Vietnam announcing huge aircraft orders, the demand for support services in the aviation space is only going to increase.”

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