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16-Nov-2010 : Ground Handling : Cargo Services : Fueling Services : Executive Aviation : Aircraft Maintenance : Aviation Security Swissport International Ltd. Risk & Insurance Management IATA Cargo Claims & Loss Prevention Conference From landing to take-off: We care!

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Page 1: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

16-Nov-2010

: Ground Handling: Cargo Services: Fueling Services: Executive Aviation: Aircraft Maintenance: Aviation Security

Swissport International Ltd.Risk & Insurance Management

IATA Cargo Claims & Loss Prevention Conference

From landing to take-off:We care!

Page 2: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

16-Nov-2010 | Page 2

Agenda

Swissport InternationalContractual RelationshipSwissport’s Claim Handling ProcessRisksWhat are we up to as an IndustryAQDSwissport Formula

Page 3: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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Swissport International

Revenue (2009) EUR 1126 million

(CHF 1690 million, USD 1690 million)

Countries 38Employees 32’000Flights handled 2.5 millionCargo handled (tons) 3.5 millionAirports served 179Customer airlines over 650Passengers handled over 70 million

Page 4: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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Contractual Relationship

IATA Standard Ground Handling Agreement (SGHA), Main AgreementSimplified Procedure Annex B (still 3 versions in use 1998, 2004, 2008)Article 8: Liability and Indemnity (version 2008)

Swissport acts as “Agent” on behalf of the airlines.Additional services rendered outside the scope of Standard Agreement, e.g. for forwarders, frequently without contracts

Page 5: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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Swissport’s Claims Handling Process

Report “loss of” or “damage to cargo” to the incident handling department of the respective station (direct or through incident reporting system AQD).Investigation initiation and collection of information and documents:• AWBs and applicable Annex B,• Witness statements, photos, • internal and external investigation reports, • claimant letter, etc.).

Subsequently Swissport’s external Claims Handler is notified about the incident and provided with all documents.The Claims Handler opens a new claims file and assesses the circumstances of the damage or loss and evaluates Swissport‘s potential liability. If necessary he seeks advice and instructions from Swissport’s Aviation Liability insurers.

Page 6: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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Swissport’s Claims Handling Process

The Claims Handler returns back to the local incident handling responsible with the necessary instructions:

• Accepting.• Denying liability.

If Swissport’s liability is clearly compromised:• Swissport’s Risk Manager approved settlement strategy.• Settlement within authority level obtained from Swissport’s insurers.

In more complex cases, there is a continuous liaising between local Swissport staff, Claims Handler, Swissport’s Risk Management and the insurers until the claim is closed.It is always the local Swissport station (incident handling responsible) who is responsible for the communication with the affected Airline and/or other 3rd parties.

Page 7: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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Risks?

People’s HealthDamage to equipment and buildingsTheftTerrorismFlight safetyCommercial risk in case of underperformance

Page 8: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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What are we up to as an Industry?

Certified Cargo Screening Program CCSP

Import Control SystemCOMMISSION REGULATION (EC) No 312/2009COMMISSION REGULATION (EC) No 1875/2006

COMMISSION REGULATION (EC) No 185/2010 + 300/2008

Page 9: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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And more……..

IATA ISAGO Initiative

Various repetitive Airline Audits

GDP Standards

JAR Ops requirements

Page 10: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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How does Swissport Respond?

By implementing and adhering to Industry quality programs:• ISO, • ISAGO, • TAPA, • GDP, • JAR OPS elements• AQD

By introducing internal quality improvement programs like Swissport FormulaBy seeking true partnerships with our clients

Common Denominator:

Quality Management Programs

Sustainable Processes & Relationships

Page 11: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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Prevention: AQD

The Aviation Safety and Quality Management System (AQD) is a comprehensive and integrated set of tools to support Safety Management and Quality Assurance.

Developed by aviation software specialists, AQD is backed by a 20 year span of aviation system expertise for regulatory authorities, airlines and other aviation related organisations.

Page 12: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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AQD Features

Key elements of a Safety Management System:

• Occurrence reporting

• Investigation management

• Audit management

• Action Tracking

Page 13: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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AQD Benefits

Facilitates compliance, using industry best practices.Extensive customization to maximize the fit with your business and your compliance needsCombined audit (QA) and investigation (Safety) functions to:• ensure consistent processes• provide integrated analysis• reduce training

Formalized, disciplined processes to help enforce good practiceIncident reporting, analysis and investigation through to auditing and corrective action tracking.

Page 14: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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Prevention: Swissport Formula

“Swissport Formula is a Culture Change and not a Project”

Page 15: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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Swissport Formula

Org. Structure• Roles and Responsibilities clearly defined for each layer• Minimum requirements for appraisals• Span of control (also organisational structure – synergies)

KPI’s• Standard KPI’s• Daily / Weekly Performance Measurement• Target Setting• Automated Data Capture and Reporting

Page 16: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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Swissport Formula

Planning• Standard Planning Methodology for Staff & GSE, planning according

Engagement Standards• Optimum rostering based upon demand planning

Active Supervision• Daily operational Reports• Operational Meetings every shift• Structured Shift hand over• Structured follow up of Action Plans

Training• Standard training programs

Page 17: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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Swissport Formula

Implementation Process

• Initial visit to a station to explain content of program, to answer initial questions and to get the buy in from local management

• Self-Assessment Questionnaire by Station

• Second visit of station, action plan based on self-assessment

• Introduction of Action Plan with clear deadlines

• Follow-up visits and continuous improvement

Page 18: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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What makes the Difference? Attention to Detail from small…

Page 19: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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… to bigger

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…to bigger

Page 21: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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What is it all about?

VIGILANCE BY EVERYONE

DISCIPLINE

OPEN COMMUNICATION CULTURE

MANAGEMENT ATTENTION

Page 22: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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SUMMARY

Swissport takes an integral approach to risks on all levels and in all business divisions

Page 23: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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Thank you for your attention !

Swissport International Ltd.Risk & Insurance ManagementP.O. Box8058 Zurich-AirportSwitzerlandP: +41 43 812 57 63F: +41 43 321 25 62

[email protected]

Page 24: IATA Cargo Claims & Loss : Ground Handling : Cargo ... 1_Cargo claims... · • JAR OPS elements • AQD By introducing internal quality improvement programs like Swissport Formula

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Questions please