Handlers must look for new ways to achieve cost savings

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Carrier margins remain under relentless pressure and so they are in no position to stomach big increases in freight handling charges, writes Neil Madden.

So ground handlers must constantly look for ways to achieve cost savings and other efficiencies. This was the backdrop to meeting between Menzies Aviation and Air Menzies International (AMI) management teams from Australia and New Zealand which took place in Sydney, Australia, in December.

The meeting was convened to develop co-operative ways to develop business in Oceania and South East Asia. Discussions and workshops identified a number of opportunities for both businesses, such as the cross-utilisation of vehicles and equipment, and shared opportunities arising from Menzies’ existing presence in SE Asia.

Air Menzies EVP Oceania and SE Asia Alistair Reid, commented: “As part of the Menzies family, and given that Menzies Aviation and AMI have daily interactions with one another, there is a wealth of opportunities for development in Oceania and SE Asia for both businesses and we are excited to advance these discussions.”

Air Menzies VP AMI South Pacific, Geoff Young

Air Menzies VP AMI, South Pacific Geoff Young (pictured) said the meeting was “a great success” and opened the door for a stronger partnership in the future. Meanwhile, the group continues to win new customers.

Most recently, Menzies Macau won a handling services contract for MASkargo, as the Malaysian carrier started a weekly cargo flight between Macau and Kuala Lumpur on 21 January.

Menzies Macau managing director Raymond Lo said the launch of the route would not only increase the competitiveness of Macau in the Southeast Asia logistics market, it would also benefit to third-party logistics providers, enabling them to accommodate China’s huge e-commerce market.