1 Understand the scope

The first step is to understand the scope of the ground handling services required for your airline operations. This depends on factors such as the type and size of aircraft, the number and frequency of flights, the destinations and routes, the passenger and cargo volumes, the airport facilities and infrastructure, and the regulatory and safety standards. You should also consider the level of quality and reliability you expect from the ground handling providers, and the potential risks and challenges involved.

2 Compare the options

The next step is to compare the different options available for obtaining ground handling services. You can choose to perform some or all of the services in-house, outsource them to a third-party provider, or form a joint venture or partnership with another airline or airport. Each option has its own advantages and disadvantages, depending on the cost, quality, flexibility, and control you want to achieve. You should also evaluate the market conditions and competition, and the legal and contractual aspects of each option.

3 Estimate the costs

The third step is to estimate the costs of each option, based on the scope and quality of the services. You can use various methods and tools to calculate the costs, such as benchmarking, simulation, historical data, or industry standards. You should also account for the fixed and variable costs, the direct and indirect costs, the overheads and margins, and the inflation and exchange rates. You should also consider the potential savings and revenues that each option can generate, such as operational efficiency, customer satisfaction, or ancillary services.

4 Negotiate the terms

The final step is to negotiate the terms and conditions of the ground handling service contracts with the selected providers. You should aim to achieve a fair and balanced agreement that reflects the value and quality of the services, and that aligns with your strategic and operational goals. You should also establish clear and measurable performance indicators, service level agreements, penalties and incentives, dispute resolution mechanisms, and termination clauses. You should also review and update the contracts regularly, to ensure they remain relevant and effective.

5 Monitor and evaluate

Once you have signed the contracts, you should monitor and evaluate the performance and outcomes of the ground handling services, using the agreed indicators and standards. You should also communicate and collaborate with the providers, to address any issues or challenges, and to identify and implement any improvements or innovations. You should also collect and analyze feedback from your customers and stakeholders, to measure their satisfaction and loyalty, and to enhance your reputation and competitiveness.