Baggage security and industry productivity The account for and - - PowerPoint PPT Presentation

Baggage security and industry productivity

June 2016 The account for and authorise baggage reconciliation system service project

Topics

• BARA and international aviation
• Baggage security requirements
• Voluntary collective negotiations

There are currently some 30 BARs around the globe

Common activities

• Support safe and efficient aviation
• Unified voice on industry issues

BARA specific

• Voluntary, non-binding collective

negotiations

• BARA has ‘authorisation’ from the

Australian Competition and Consumer Commission

AAA BRS – match passengers to bags to flights

Airline operating requirement

• Part of each airline’s Transport

Security Program (TSP)

• Purchased by airlines but primarily

used by ground handlers

• Cloud based service common to all

airlines through individual agreements Supports improved baggage outcomes

• Productivity tool for ground handlers

and airlines

A short history on AAA BRS

• BARA managed a competitive tender

process in 2002

• Unisys awarded in 2003
• Extension from 2009 to 2014

– formally included Unisys in BARA’s 2010 ACCC Authorisation

• Two year extension to March 2016
• Current agreement to March 2020

Voluntary negotiations - Project dynamics

Key BARA considerations

• Time and resources vs other key service

& price negotiations

• High service delivery and support
• utcomes to date
• Options available to some airlines

What did BARA want?

• System that works – managed service provider

– proactive management of issues – ability to work with airlines, ground handlers and airports

• Innovation in new offer
• Outcomes-focussed agreement

$1.4 billion annual spend

Voluntary negotiations - outcomes

1. Executive decision to go with direct negotiation – forecast price reduction (about 20% in real terms by March 2020) – transparency and clearer accountabilities – experience in dealing with multiple airlines for a cloud based service – high service quality outcomes and support – sound understanding of airline security requirements – still upset some airline IT departments 2. More concise and clearer agreement 3. Seamless transition to new service (40 airlines)

AIRCALIN AIR CANADA AIR INDIA AIR MAURITIUS AIR NEW ZEALAND AIR VANUATU ALL NIPPON AIRWAYS ASIANA AIRLINES CATHAY PACIFIC AIRWAYS CHINA EASTERN AIRLINES CHINA SOUTHERN AIRLINES DELTA AIR LINES EITHAD AIRWAYS EMIRATES EVA AIR FIJI AIRWAYS GARUDA INDONESIA JAPAN AIRLINES KOREAN AIR LATAM AIRLINES GROUP MALAYSIA AIRLINES PHILIPPINE AIRLINES QANTAS AIRWAYS QATAR AIRWAYS ROYAL BRUNEI AIRLINES SINGAPORE AIRLINES SOUTH AFRICAN AIRWAYS THAI AIRWAYS TURKISH AIRLINES UNITED AIRLINES VIETNAM AIRLINES VIRGIN AUSTRALIA

BARA’s Members