Standard Ground Handling Agreement (Sgha) Of January 2018

IATA has explicitly identified its resolutions and standard practices as benchmarks for the provision of services to businesses and has presented them verbatim in the new subsections 5.3 (a) and b). In 2013, IATA`s Ground Handling Council authorized the use of yellow pages to publish texts amending Annex B in the years between new versions of the SGHA. Annex B of the SGHA 2018 added the yellow pages to paragraph 8. In the future, this will provide some flexibility in the baseline model. The training rules in the new clause 5.6 define as a minimum awareness of the rules and regulations applicable to the material handler and refer to the IATA materials in clause 5.3. At present, 37 airlines are in the ISAGO audit pool, which can benefit from common operational audit reports for the same customs clearance at a given airport. It will be interesting to see how claims are handled and whether this results in the airline`s internal processes to track and monitor cargo claims. Improvements can be made if airlines use more detailed documentation requirements for cargo shipments and the handling of irregularities (in points 5.3.1 and 5.7 of Annex A respectively). The new clause 3.3 of the SGHA 2018 prohibits self-handling if an airline has already outsourced it as part of the SGHA.

In Europe, for example, the 1996 EU Groundhandling Directive (96/67/EC) opened up the groundhandling market to competition and maintained the carrier`s general freedom to clear customs at an airport itself. Amended clause 7.3 and new clause 7.4 give the customs clearance the right to suspend services if the airline fails to pay in the event of insolvency or requests immediate advance payment or cash payment. Given the historical liquidity issues faced by some airlines, it is perhaps surprising that these clauses have not been previously included in the ASA. This does not mean that handling companies will be anything other than unsecured creditors for unpaid invoices. Depending on the current SGHA legislation, advances or cash advances may be contrary to existing local insolvency rules. Many of these changes are purely editorial and modify SGHA 2013. However, some changes are significant and focus on operational practices, improved standards, training, bankruptcies, claims and compliance in general. For example, the UK CAA suspended Monarch Airlines` AOC when it went bankrupt in October 2017 and forced it to cease operations with immediate effect. They no longer needed groundhandling services. .

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