Baggage security and industry productivity The account for and authorise baggage reconciliation system service project June 2016
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 outcomes to date • Options available to some airlines What did BARA want? • System that works – managed service provider – proactive management of issues $1.4 billion annual spend – ability to work with airlines, ground handlers and airports • Innovation in new offer • Outcomes-focussed agreement
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)
BARA’s Members AIRCALIN GARUDA INDONESIA AIR CANADA JAPAN AIRLINES AIR INDIA KOREAN AIR AIR MAURITIUS LATAM AIRLINES GROUP AIR NEW ZEALAND MALAYSIA AIRLINES AIR VANUATU PHILIPPINE AIRLINES ALL NIPPON AIRWAYS QANTAS AIRWAYS ASIANA AIRLINES QATAR AIRWAYS CATHAY PACIFIC AIRWAYS ROYAL BRUNEI AIRLINES CHINA EASTERN AIRLINES SINGAPORE AIRLINES CHINA SOUTHERN AIRLINES SOUTH AFRICAN AIRWAYS DELTA AIR LINES THAI AIRWAYS EITHAD AIRWAYS TURKISH AIRLINES EMIRATES UNITED AIRLINES EVA AIR VIETNAM AIRLINES FIJI AIRWAYS VIRGIN AUSTRALIA
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