Aviation Business – October 2018

http://www.aviationbusinessme.com October 2018 · AV I A T I O N B U S I N E S S 31

DNATA

Moving forward, dnata is exploring prospective business streams, such as lounge and VIP handling services.

dress what the SVP refers to as one the
challenges for the 2018 year.
“One of the challenges we faced over
the last year has actually been the unex-
pected growth in air cargo — over the last
18 months. That has put real pressure on
the cargo facilities, particularly in Europe
and North America,” explains Angus.
“Because the capacity is fixed, in
terms of the facility. If you have a cargo
facility with 5,000 sqm of space, you
can’t just expand it overnight. We’ve
had to do quite a lot of investment to
improve our ability to manage capac-
ity,” he adds.
The impact of higher fuel prices is
also being felt across the entire avia-
tion industry and is bringing pressure
particularly to the airlines. Despite what
one might initially suspect, however,
the impact hasn’t necessarily forced
carriers to go lean.
In fact, from dnata’s perspective, there
has been a noticeable shift in demands
from the market.

Pa r t of t hat i nvestment a lso i nc luded

the adoption of digital technologies. It

was previously by the company that it

had begun the journey to introduce a

new Enterprise Resource Planning (ERP)

into its IT infrastructure.

In addition to the ERP, dnata has also

begun the adoption of a new cargo man-

agement system, aptly named iCargo,

as well as the adoption of a new safety

management system that is being sup-

plied by MetricStream.

Another mobile solution geared to-

wards the ground staff is also being

explored, one that would enable the

teams to capture real-time data on the

aircraft turnaround. The implementa-

tion of the latter is, however, still a

few years out.

In the meantime, the SVP shares that

dnata will continue to build upon its

recent acquisitions and existing con-

tracts, while also exploring prospective

business streams to supplement its

core business.

“We will continue to look for acquisi-

tions, but it will be probably smaller

than it has been in the past, and we will

continue to drive to optimise the busi-

nesses t hat we have,” com ments A ng us.

“In addition to that, we are looking at

new business streams. For example, VIP

handling, lounge handling, and even

specialist cargo products such as phar-

maceuticals. Looking at those specifi c

high yield areas and organic growth.”

“There is a change. Five years ago,

the airlines were incredibly price

driven. Always looking for who could

provide what at the lowest price,”

explains Angus.

“I think there is a growing recognition,

certainly amongst the more forward-

thinking airlines that while you can

save on your handling rate, you’ll pay

for it in terms of poor customer service.

It impacts on your reputation.

“More and more airlines are recognising

t hat buy i ng t he c heapest is not a lways t he

best for your business. That’s the market

position that we are aiming for.”

As the world heads into the 2019 year,

dnata, like many other organisations

within the industry, has already moved

to set the foundation for future growth.

According to the fi nancial performance

report released last May, the aviation

services provider has already invested

AED 600m towards new facilities and

equipment, talent development, as well

as key acquisitions.

I think there is a

growing recognition,

certainly amongst

the more forward-

thinking airlines

that while you can

save on your han-

dling rate, you’ll pay

for it in terms of poor

customer service.”

KEY FACTS

8

5

Number of

countries active

127

Airports

active in

309

Airlines

served