… urges CEO, Dominik Misskampf, of cargo handling agent, CHI Aviation Handling. This would provide airlines with another service option in addition to the current agents, Fraport AG's ground handling subsidiary, (BVD), and its local competitor, WISAG Aviation Service Holding GmbH. However, the authorities should only grant the license to a company whose business focus is on air freight, recommends Mr. Misskampf. His statements are a reaction to the restrictions on cargo flights in Frankfurt by Fraport subsidiary, BVD. For specifics pls visit: https://www.cargoforwarder.eu/2022/07/02/exclusive-frankfurt-restricts-freighter-ops/
Dominik Misskampf speaks frankly: An additional service provider would minimize the risk of the entire system running into trouble if one of the two current agents experiences operational and/or personnel difficulties, as is currently the case with Fraport subsidiary, BVD. The CHI expert suggests that a newcomer should put a very strong focus on air freight, in order to enhance the variety of services on the tarmac.
Politics should act
The CHI executive’s impulse will surely be heard by the Hessian state government. It is responsible for granting licenses to companies applying for operational permits on airport. In 2017, for example, the Hessian Ministry of Economics and Transport revoked the license of Spain's Acciona, after it had previously operated at Frankfurt Airport for almost 20 years. As a rule, the Ministry issues licenses or renews existing concessions for ground services, including transport and handling services, every 7 years.
In case a third ground service provider were to be admitted to do business at Rhine-Main airport, it would be entirely in line with the targets of the EU Competition Commission. For some time now, Brussels has been pushing to further liberalize ground services at European airports, this way preventing oligopolies and giving airlines a broader range of choices of which provider they want to cooperate with. However, the hurdles are high. In addition to acquiring a license, an applicant would have to invest a lot of money in technical and operational assets such as dollies, vehicles, and personnel. “Overall, a third service provider doing business at FRA, would minimize the risk of vulnerability to crisis and prevent the system from derailing, especially in peak times,” the executive maintains.
Communications must be improved
Since Fraport’s BVD announcement late on Friday afternoon came at extremely short notice, all players in the supply chain needed to coordinate processes to keep freight flowing despite the temporary constraints. CHI emphasizes “we are happy to assist in preventing the collapse of the freight system. But we need to be proactively involved in communication, or cooperation won't work."
The BVD flight ban has strained CHI and other ground handlers because their warehouses are running full since forwarders kept trucking goods to FRA and were trapped by the flight cancellations. “Now we have to figure out the best way to route shipments that got stuck at our freight terminal at Frankfurt to other stations.”
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