8th Americas GHI Conference, Toronto 

8th Americas GHI Conference

Toronto is open for business

The Americas GHI Conference went to Canada for the first time, staying at the Sheraton Centre in Toronto from 25 – 27 June.

Open for business are the words seen on number plates issued in Ontario and that was the spirit of the 8th Americas GHI Conference, which welcomed a record-breaking 550 delegates, nearly 50 airlines and 60 exhibitors who booked over 2,300 one-to-one meetings.

Conference Chairman Max Gosney said this put the Americas conference at a similar level to the GHI Annual 10 years ago.

Gosney called the Americas conference the fastest rising thing since the Toronto Blue Jays’ World Series-winning home run in 1993, thanking the audience for their support since GHI launched the Americas conference in 2015.

Opening the conference, Gosney kept up his tradition of historic comparisons, saying he looked at the map of the Toronto area and the Credit River caught his eye.

Thinking that was a curious name, Gosney looked up its history and found out it was a historic trading point on the shore of Lake Ontario.

In the 18th century, Mississauga people met with French and later British settlers to trade at the mouth of the river.

The settlers had to trust the Mississauga people would return in the spring with the promised animal furs in exchange for European goods, which Gosney said showed the spirit of cooperation.

Fast forward to service level agreements (SLA) in 2024, Gosney suggested that the ground handling industry could learn a thing or two from the Mississauga, saying SLAs are punitive and distrustful with fines for delays. He cited a report saying only 10% of SLAs contain any kind of incentive, calling SLAs frontloaded with penalties.

Airlines are entitled to demand minimum service standards, said Gosney, but if the prices are too low to deliver acceptable services, ground handlers need to speak up to avoid performance penalties down the line. If SLAs were more positive, surely everyone would benefit, wondered Gosney.

He said: “Instead of us quibbling over who gets the best and biggest slice of the cake, we could work together to bake a brand new, bigger cake.”

Giving a personal example of how incentives can produce results, Gosney said he had battles with his teenage son over tidying his room, which produced chuckles from the audience, suggesting plenty of audience members could relate to this challenge.

Penalties such as reduced screentime worked for a few days but not long term until Gosney sat down with his son and suggested he sort out clothes into piles that he wanted to keep and those that could go.

His son’s eyes lit up when Gosney suggested selling the unwanted items on Vinted and he could keep the profits.

“He said to me, Dad, let’s get to work. So let’s get to work taking a bold, new, creative approach on SLAs, putting more partnership in the supply chain. Let’s get the credit to grow and the profit to flow,” Gosney told the audience.

Market challenges
Starting the discussions with wise words of Winston Churchill about never wasting a good crisis, Gosney welcomed his first panel with representatives from airlines, ground handlers and airports on stage to discuss regional challenges and the opportunities they brings.

Cost pressures and labour shortages were raised as issues, along with infrastructure and bureaucracy in Latin American countries.

People in South America take few flights compared to people in North America so there is huge potential, which was emphasised by Phil McGrane, CEO of dnata Brazil, who said Paris has around 95 million international arrivals a year while Brazil as a whole country has around six million so come visit Brazil, it’s a beautiful country, he urged the audience more than once.

Ground handling has always struggled from a race to the bottom on costs, a point raised by McGrane, who said some customers value dnata’s quality of service and realise it costs money to maintain such high standards, while others will switch to small operators who offer unfeasibly low rates.

“Generally, customers are open to discussions. I can’t say it is always easy to get the full increase that we would like but also we have to say no to some customers because we can’t operate where there is no profit for us or operate in a safe environment and safety costs. For us, we have not had too many problems trying to recover costs from most of our clients,” said McGrane.

Staff turnover is often high and requires creative solutions to resolve. Andrew Abbona, Senior Director Customer Experience and Operations at Air Canada said the airline worked with its union to find out what is important to employees want, with work/life balance regularly coming up, more so than pay. Staff turnover for Air Canada in the USA is down from 30% before the pandemic to 15%.

The airport is an ecosystem, said Larry Shack, Associate Director Ground Operations at Greater Toronto Airport Authority, which developed Pearson Works to get companies at Toronto Pearson International Airport together for a job fair and is co-sponsoring security clearances of applicants before they get an employer. The staff retention rate is 87% because people who go through the process want to be there.

An audience member asked why ground handlers are resistant to digitalising operations, which was disputed by panellists, who said the challenge is how to use new technologies. In Brazil, most airports are operated by concessions with their own systems, said McGrane, who said dnata Brazil embraces new working methods that make operations more efficient.

Serge Elkhoueiry, Chief Operating Officer of AGI added that airlines have their own systems, which makes collecting data for reports difficult.

A basic standard would make life easier, with Elkhoueiry saying: “If there is one main system we can all use and it feeds into the different systems of airlines, that would be helpful.”

Sustainability was also discussed, with investments being made in alternative power sources, mainly electricity with some hydrogen solutions, on the ramp.

Going electric costs money to invest in new equipment and the charging infrastructure is still not adequate in many places.

Elber Biondi, Director of ABESATA, said: “It is not a question of if you want it, everybody wants green technology. You have to invest, you have to spend money to get the benefits.”

Cargo growth

Cargo capacity in North America is up 4% and demand by 7%, and Latin American capacity is up 10% with demand up by 12%, the audience heard during the session Cargo: Market trends and a cargo handling strategy for the Americas with Serge Elkhoueiry of AGI returning to the stage alongside Joe Phelan, Member of the Board – USA at TCR.

2023 was challenging globally for cargo before late in the year and all the results this year have shown high year-on-year growth.

Phelan says e-commerce is strong as people shop online and perishables and pharmaceuticals are doing well.

For several Latin American countries, perishables are major exports, and other exports include automotive and aerospace products.

The strong cargo performance is welcome though putting pressure on capacity, added Elkhoueiry, who said some months were unexpectedly strong.

The momentum from the end of last year is showing no signs of stopping at the time of writing and looking good into next year, helped by e-commerce and perishable demand, combined with ocean freight disruption sending container costs through the roof, which is pushed volumes to air services.

Phelan also commented: “We have gotten quite spoilt as consumers with fast delivery of e-commerce and a lot of that points towards air cargo.”

Cargo was the placed in the spotlight during the pandemic as there was a time when it was the source of revenue for airlines.

Passenger services have come back strongly and belly capacity is returning to the market, which caused rates to fall from the pandemic highs.

Industry data says spot rates are rising again, depending on the trade lane, due to strong e-commerce demand, ocean freight disruption improved manufacturing demand.

The pandemic demonstrated the value of air cargo with Phelan saying: “Most airlines realised how profitable it was but that was a real wake-up call and it led to business cases suggesting more widebody aircraft in the future and more focus on demand and forecasting.”

Costs keep rising, particularly labour which is more expensive than ever, said Elkhoueiry, and footprint at airports with concessions fees, price per kg and storage fees, which go back to the airlines who pass on the costs to freight forwarders and shippers.

“It is such a vicious circle and it is impacting all of us,” Elkhoueiry said.

Digitalisation will help the industry process information more efficiently, which will make forecasting easier so handlers can make better decisions. The warehouse is evolving with innovations such as autonomous vehicles, drones and robotics.

GSE innovations are making the cargo area safer and more efficient with Phelan bringing up autonomous vehicles, loader approach systems, offloading systems and more GSE information such as telematics.

Safety benefits include refusing to let an operator use a piece of equipment they are not trained to use by not starting, said Phelan, who said the information can do so much to produce safer and more efficient operations.

TCR has also explored pooling equipment, with Phelan saying standardised equipment improves safety as employees do not need to learn multiple systems, utilisation is higher as handlers do not need their own equipment which does not get used much and the apron is less congested with fewer pieces of equipment.

Catering for future growth
Toronto Pearson International Airport is the busiest airport in Canada and the one most delegates used on their way to the show.

Dwayne MacIntosh, Senior Director, Aviation Operations at Greater Toronto Airports Authority (GTAA) said the conference was in Toronto at a seminal moment as the airport has recently announced its LIFT programme, standing for Long-term Investment in Facilities and Terminals.

The 10-year infrastructure programme will make Pearson one of the most sustainable and passenger friendly airports in the world.

Pearson handles around 60% of Canadian air traffic and 40% of air cargo, it is the second largest international hub in North America and the second largest employment zone in Canada, supporting 500,000 jobs of which 50,000 are directly at the airport.

IATA forecasts that global air traffic will double by 2040 from 2019, and Pearson is projecting 65 million annual passengers by the early 2030s, up from 45 million expected this year.

Toronto has competition, said MacIntosh, saying airports in the USA have invested $40 billion in the last five years, adding capacity and new technologies.

This means Pearson needs to make investments to modernise its services. LIFT has three components, an accelerator programme, the gateway programme and T1 and T3 revitalisation programme.

Accelerator will cover 2025 to 2028 and focuses on enhancing critical operational assets, reducing greenhouse gas emissions and constructing an interim terminal.

MacIntosh said: “One of the lesser understood aspects of Covid is what it did to our capital projects and how it stopped our capital projects that were underway or did not allow those that were about to start to be started. A big part of Accelerator for us is playing catch-up and getting those programmes back on track, restoring or replacing ageing assets all while adding capacity to our facilities.”

Airfield lighting and electrical systems will be upgraded, deteriorating pavements and airfield assets will be restored, clean heat sources will be added and cargo handling capabilities will be expanded.

The interim terminal, which is still being designed, is the standout piece, said MacIntosh, which will cover 60,000 square metres, around one third of the size of Terminal 3. It will add six million passengers, which will be critical during the LIFT programme so the airport can cope with growing passenger demand.

GTAA is working with airlines on the Gateway programme to get endorsement for the gateway and the T1 and T3 revitalisation.

The designs being considered are a satellite or a pier terminal with both having pluses and minuses.

The programme is anticipated to last between 2026 and 2032, blending sustainable design, cutting-edge technologies and amenities that exceed passenger expectations.

Revitalising T1 and T3 will happen simultaneously with the Gateway programme, focusing on renovating facilities, restoring and replacing ageing assets, improving customer expectations and increasing capacity. Car parks and road access will also be examined so people can access the airport while minimising congestion.

Pearson has signed up for Net Zero by 2040 with programmes including clean heat in the infield concourse, electrifying the fleet and adding electrical charging stations airside and landside, adding photovoltaic solar facilities, along with the interim terminal.

MacIntosh said sustainability and circulatory will receive priority in the design and construction, and sustainable technology will be integrated.

Aviation is an ecosystem, said MacIntosh, and on a good day it is well choreographed with all parties working together so people and goods get where they need to be. Pearson LIFT is only possible with the participation of all airport partners with ground handlers at the forefront, said MacIntosh.

The pandemic placed stress on ground handling companies at Pearson with a lot of experienced team members leaving the workforce.

“In Toronto, I would say we have a fairly green workforce but they are learning quickly and developing towards where we need them to be,” he said.

To handle 65 million passengers, ground handlers will need a ready and willing workforce, meet worldclass standards and provide innovative technology and systems. Commenting on the workforce, Pearson has come a long way building a pipeline of dependable of talent to sustain growth.

The airport authority has engaged with local organisations to help job seekers find employment including the RAIC Ready programme.

RAIC, which stands for Restricted Area Identification Card, was launched in partnership with Transport Canada so jobseekers could get security clearance before they do a job interview so they can start work as soon as they have an offer.

MacIntosh said: “It has not only been beneficial in recruiting people, it has been beneficial in reducing turnover as many people as they apply for security clearances don’t wish to wait and they leave our organisation before they even start.”

Job fairs have been held, which have provided many opportunities to build careers across the airport ecosystem and there are plenty of jobs available providing worthwhile careers, including or especially in the ground handling sector.

Pearson expects high standards from its partners, launching the Pearson Standard last year, providing guidelines and operational expectations representing the shared path towards achieving a new standard of responsibility, performance and quality to benefit everyone.

They cover all areas of operation to provide a higher standard of customer service, safety and efficiency, said MacIntosh, who said GTAA is very proud of the Pearson Standard.

Technology was the final point, with MacIntosh saying ground handling will be at the forefront of digitising the apron and the whole airport. Biometric check-in, autonomous airside vehicles, digital bag tracking and AI tools are some of the technologies transforming airports.

“As our airport expands, we welcome new guests, employees and air routes, these tools will bind us together to deliver a quality of service we can be proud of,” said MacIntosh.

Facilitating business

The GHI conferences serve an important role in connecting the right people, as was proved in the presentation American aviation trailblazers: Taking the hard walk to electrification of the apron – real stories from the Americas.

Mark Reppucci, Global Director of GSE Sales at Advanced Charging Technologies (ACT) and Vladimir Munoz Barbieri, CEO of Talma Ecuador gave a joint presentation about electrification, a partnership which was made possible by meeting at the 7th Americas GHI Conference last year in Punta Cana.

Electric GSE is generally more reliable GSE powered by internal combustion engines but it requires the necessary infrastructure and equipment, which is not easy to implement.

To implement such a project requires a combined effort and Quito’s airport operator are actively investigating constructing a battery farm, Munoz told the audience, which would be the first in South America.

ACT’s team provide a good solution for Talma Ecuador’s needs, said Munoz, who said they wanted to improve efficiency and reduce energy consumption, to implement live telematics for real-time insights into fleet utilisation, and to support multiple battery technologies.

Owners of electric cars can charge them at work or overnight but with a 24 hour operation at an airport, this is not possible so charging times need to be reduced, which is what the ACT team are helping resolve.

Handing over to Reppucci, he said Talma Ecuador had old charging technology with 50% efficiency at best.

ACT has implemented a system with 94% charging efficiency and ACT’s charging system is agnostic so it can charge any vehicle, whether Talma moves to lithium batteries or sticks with lead acid.

ACT has developed an international charging standard so companies have charge protocols, which means if companies move to different lithium manufacturers, they will see the company’s profile. This means chargers and infrastructure do not need to be changed.

Education and knowledge are key, said Reppucci, saying most of his work is educating partners as he wants to hear their problems so they can reach a solution. 

It starts with networking, he said, saying: “I try to put airport authorities together with airports around the world, you’re not alone. My wife will tell you, I spend a lot of time in Central and South America and the Caribbean and everyone wants to learn and they want to do it the right way.”

With telematics, the partner is alerted when there is a problem with the charger and someone needs to be sent in to look at it.

Reppucci says batteries do not need to be 100%, they can be kept in a medium range with opportunity charges of 10 minutes or maybe longer delivering that.

Telematics can say when potential charging time was missed, which Reppucci said is about education, not getting people into trouble.

He said: “They don’t know what they don’t know so we can help your team with better practices. No one wants to go back to filling up diesel, if you guys do this, and we will train you and make it part of the Talma Training School, you will start off on the right foot and we will move forward.”

Early this year, Quito International Airport approached Reppucci saying they were working on a Master Plan and had noted that ground handlers had chargers, how could they get some too they wanted to know.

Stop, said Reppucci, you need to know where you will put them, how many you need, how many vehicles need charging and various other questions need answering first.

Reppucci wants people to know what they are buying and they are the right products. He praised Latin Americans for asking questions because they want to know, which is different from big US airports who do their own thing.

Working together is a partnership, said Reppucci, asking “What are you getting out of it? We’re going to grow with you, whatever technology you choose, we are going to educate your team, this is the profile and you’re going to understand what it means so if you have to change vendor, I will work with you but you have to meet the Talma international airport charging standard that we developed.”

Next stop, Orlando

Speaking after the conference had finished, Conference Chairman and Portfolio Director Max Gosney was delighted with how everything had gone, saying: “There was a real buzz, which is what you want on the show floor as exhibitors engage with their customers. It has been frenetic, I think everyone is exhausted but that’s because there have been so many great interactions through networking and deals being done.”

The aviation trailblazers session with Advanced Charging Technologies and Talma Ecuador made Gosney proud knowing that their partnership was because of a meeting at the 7th Americas GHI Conference last year.

He said: “When you hear that someone has met at your conference and that has been a springboard for working together to tackle a business challenge like electrification and they have made a productive partnership out of it, that is exactly what we are about.”

The 9th Americas GHI Conference will be held at Rosen Shingle Creek in Orlando, Florida from 3-5 June 2025. Gosney said: “We think it will be an excellent opportunity to grow the event and take it to the next level.”