Recovering from the pandemic, aviation is back in business and returning to normal but companies have learnt that they need to do more than make a profit, they need to make the world a better place. dnata is leading the way with its strategy Reconnecting a Better World, Group CEO Steve Allen explained at the 14th Asian GHI Conference held at Le Meridien Hotel & Conference Centre.
Allen explained that 2022 was the year of recovery as key markets came out of the pandemic, starting with concerns about the Omicron variant, which proved not to be a major issue as many feared. There was a lot of pent-up demand, resulting in rapid growth, faster than many predicted, as key markets opened up again and people could start flying again. For dnata, it was a question of meeting the demand quickly with the high standards dnata prides itself for.
He said: “As the world opened up, we worked tirelessly to ramp-up operations safely and quickly. We stayed relentlessly focused on our customers; and it's that commitment that continues to set dnata apart despite the economic issues that challenge the aviation industry and other businesses globally.”
Solving the problems of today is important but there needs to be a focus on the future. Through the recovery period, dnata also doubled down on its sustainability strategy, committing to investing $100 million in green capabilities and halving its carbon footprint by 2030.
Engaging with its workforce was the second part, thinking about what the workforce of tomorrow looks like. As dnata restored and scaled up operations, it recalled employees previously put on furlough, and launched a global drive to recruit new talent for its immediate and future business needs. The new staff are a younger population who are more tech-savvy and demanding in flexibility of work practices. Being better means adapting to the needs of the workforce of tomorrow.
Allen said: “Our People strategy focuses on diversity, development, and wellbeing. We consistently invest in training and development and take initiatives to enhance diversity across our global organisation, while keeping the physical and mental wellbeing of our employees a priority. We are proud to have earned a reputation that attracts talented and motivated people, even in challenging times.”
People are becoming much more aware of their local communities, so dnata4good, dnata’s corporate social responsibility programme, has been helping employees give back and support charities and infrastructure development locally.
We consistently invest in training and development and take initiatives to enhance diversity across our global organisation
Allen said: “We continue to go beyond the call of duty with countless charitable and environmental initiatives, with more employees participating in our dnata4good programme than ever before. To me, this is the true spirit of dnata: it means that no matter where we are in the world, we deliver the same level of excellent service, and we give back to the communities where we live and do business.”
Investment
dnata has been investing heavily in its network. It expanded into Zanzibar, entered the German cargo market in Cologne and took full ownership of its subsidiary in Brazil. Construction of its new cargo facility in Amsterdam is underway, which will be run with green technology and the latest optimisation for cargo processes.
An additional cargo facility in Erbil, Iraq is also under construction. Further investments in facilities are planned for this year.
“We bring a long-term focus to anything that we do. Despite challenges across the industry, we’ve continued to invest in our operations, infrastructure and technologies that will benefit our customers and ourselves over the longer term”, commented Allen.
Inflation has been a big challenge, admitted Allen, pushing up the prices of the commodities dnata buys and its suppliers buy, which has had a knock-on effect on wage inflation due to low unemployment and the cost-of-living crisis. This means dnata has had to turn to customers and renegotiate rates which has been challenging but necessary, said Allen.
Replacing GSE for more sustainable operations is a major area of investment with Allen saying: “Choosing green options is a prime consideration in our fleet planning. We’re looking to increase the percentage of electric GSE in our fleet and opting for greener options in place of internal combustion engines wherever available. And where feasible, we are moving away from fossil-fuels and blending with bio-fuels.”
Investing in people is vital for future development so dnata has launched a six week leadership programme with INSEAD for senior leaders to learn about being a leader in the digital world.
Allen said: “We take a people-centric approach to learning and development, focusing on relevant solutions that deliver sustainable business outcome. Our investment in improving our team’s digital skills is essential to keep up with global trends and consistently provide the highest value to our customers.”
Lower down, leadership training is taking place across the company for supervisors and managers, and induction programmes to make sure anybody new coming into dnata is up to speed with the company’s values.
Collaboration
Strict lockdowns in many countries resulted in a lot of pent-up travel demand, causing much disruption last summer as the system struggled to cope. Collaboration and transparency were key to a smooth ramp up in the UAE with stakeholders knowing their capabilities.
Allen said the UAE’s ramp up was a perfect example of collaboration and was a policy that should be adopted around the world. Lessons from the UAE were used elsewhere such as in Singapore, which had an orderly ramp up with no passenger or ramp handling issues.
He said: “Through careful planning, we managed an unprecedented ramp up of operations, and we were there to fulfil a pent up demand for travel that was even greater than we expected.”
dnata worked closely with its airline partners to bring its capabilities together with their requirements to meet demands while being open and transparent so there are no surprises. That minimised disruption because airlines could plan their capacity through measures such as updated baggage policies, schedules or moving flights out of peak periods.
“We needed to make sure that we are flexible and transparent to successfully overcome challenges and consistently deliver the highest level of service and safety. I attribute our performance to the careful planning and great teamwork across and beyond the organisation,” said Allen.
Innovation has helped by bringing in third parties and moving resources to different locations. Giving the UK as an example, dnata temporarily redeployed staff across airports. This came with additional costs, Allen admitted, but was necessary to meet rapidly increasing demand.
“These initiatives made recovery more expensive for the service providers but at the same time allowed airlines to ramp up faster, resulting in quicker recovery and long-term benefits for the industry,” said Allen.
Back to normal
For 2023, demand will continue to grow back to pre-pandemic levels, which has already been achieved in some key markets such as the USA and UAE, Europe is well on the way and Asia Pacific is opening up. Following its strong performance during the pandemic, cargo is back at pre-pandemic levels.
Dubai has done well out of the pandemic, said Allen, recovering early and being a location people want to do business and go on holiday to. It has been a winner because of the way it handled the pandemic and it has the advantage of an enviable geographic location.
Allen said: “When the West has a recession and the East is booming, capacity switches to the East. In Dubai, you get a fantastic view of what is happening around the world. We monitor trends closely and, as we enhance our operations, deliberately build for flexibility so that we can respond to industry trends and customer needs with agility and speed.”
