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IATA SGHA 2018 - Overview

NEW version, Standard Ground Handling Agreement 2018

SGHA: A unique industry contract template, drawn up by both parties, airlines and service providers

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What are the changes until now in v.2018?

Main Agreement:

• All changes from AHM 811 are included
SUB-ARTICLE 1.1 data protection added
SUB-ARTICLE 3.3. - new - prohibition of self-handling when valid SGHA with handler

ARTICLE 5reworded, new structure
SUB-ART. 5.3
In the case of absence of instructions by the Carrier, the Handling Company shall apply its own standard practices and procedures provided they follow the applicable IATA industry developed standards, which may include but not limited to:
(a) IATA Resolutions
• Dangerous Goods Resolutions (DGR), CSC Resolution 618
• Live Animal Regulations (LAR), CSC Resolution 620
• Perishable Cargo Regulations (PCR), CSC Resolution 622
• Temperature Control Regulations (TCR), CSC Resolution 624
• Passenger Services Conference Resolution Manual (PSCRM)

(b) IATA Recommended Practices or other IATA Standards
• Framework for a postal agreement, CSC Recommended Practice 1677
• ULD Regulations (ULDR), CSC RP 1681
• IATA Airport Handling Manual (AHM), PSC RP 1690a
• IATA Ground Operational Manual (IGOM) PSC RP1690b
• ISAGO Standard Manual (GOSM)
• IATA Fuel Quality Pool Control of Fuel Quality & Fueling Safety Standards
• IATA Guidance Material on Standard Into-Plane Fueling Procedures
• Passeger Services Conference Resolutions Manual (PSCRM)
• and/or ICAO and/or other governing rules, regulations and procedures

Accepting audit pools
SUB-ART. 5.9
The Carrier or a regulatory authority governing the Carrier's operations may, at its own cost, and with reasonable prior notice, audit the designated services in the applicable Annex(es) B. Such notice shall contain a description of the area(s) to be audited. The Handling Company shall cooperate with the Carrier and will undertake any corrective action(s) required.
If the Carrier participates in any of the IATA audit pools, the Handling Company shall accept an audit undertaken by another carrier if done under the umbrella of the pool and for the benefit of the entire pool. The auditing company or auditing person shall be agreed by the Carrier and the Handling Company.

NEW SUB-ARTICLE 5.13
The Handling Company should ensure that all ground service equipment complies with the AIRCRAFT DAMAGE PREVENTION REQUIREMENTS Aircraft Damage recommendations as detailed in Chapter 9 of the AHM.

SUB-ART. 5.14
The Handling Company shall ensure that all ground service equipment is maintained in accordance with the manufacturers' requirements or to a higher standard.


Support E-Invoicing
SUB-ART. 7.1
The Handling Company shall invoice the Carrier monthly using the IS-XML file format described in AHM 070, unless otherwise agreed in Annex(es) B, with the charges arising from the provision of the handling services of Annex A as listed in Annex(es) B at the rates of charges set out in Annex(es) B.

SUB-ARTICLE 7.3
Clarity: (No Payment = No Service! A great achievement for handlers and all "dependable airlines").
The Parties shall reach agreement on the payment terms at each location which shall form part of the applicable Annex(es) B. Should the Carrier fail to make payment or dispute the invoice(s), within the agreed terms, the Handling Company shall notify the Carrier in writing of the failure to pay. In the event that the Carrier fails to pay the amount due within the agreed rectification period, as specified in Annex(es) B, the Handling Company shall be entitled to issue 7 calendar days' notice of suspension of services to the Carrier. The Handling Company shall restore services to the Carrier within 24 hours of receipt of payment.

SUB-ARTICLE 8.4
an Airline injuring (or causing death) to the handling company sub- contractors will no longer be indemnified by the Handling Company against related legal liabilities


ARTICLE 11. DURATION, MODIFICATION AND TERMINATION
Clarity: no notice period for cancellation of the contract in case of insolvency
SUB-ART. 11.8
Either Party may terminate this Agreement and its Annexes at any time with immediate effect if the other Party becomes insolvent, makes a general assignment for the benefit of creditors, or commits an act of bankruptcy or if a petition in bankruptcy or for its reorganisation or the readjustment of its indebtedness be filed by or against it, provided the petition is found justified by the appropriate authority, or if a receiver, trustee or liquidator of all or substantially all of its property be appointed or applied for.

Clarity: Introduction of a thirty days consultation period where that parties should discuss rate change. Provides some space for constructive discussions…
SUB-ART. 11.11
The Handling Company shall have the right at any time to vary the charges set out in the Annex(es) B provided, however, that the Handling Company has given notice in writing to the Carrier not less than sixty days prior to the revised charges becoming effective; the first thirty days being a consultation period. The notice shall specify the revised charges which the Handling Company proposes to introduce, together with the date on which they are to be brought into effect.

Annex A:

SUB-SECTION 1.4 (NEW)
Station Management (Prepare, Request, Obtain) the Carrier's 1.Landing; 2.Overflying; 3.Other (as specified in Annex B) Permission at the Airport location as defined in Annex B for
(i) Seasonal/Scheduled flights;
(ii) AD HOC flights

SUB-SECTION 1.4.9 (NEW)
Provide a Complaints Resolution Officer (CRO), authorized to act on behalf of the Carrier.

SUB-SECTION 2.2.3
(a) Check travel documents for the flight(s) concerned within the booking.
Handling Company shall be liable for Immigration fines in the following cases:
(i) Expired Passports/Visas or Passports/Visas without the minimum required validity at the day of entry
(ii) Non-Existence of Visa/Necessary Travel Document required by destination or transit station(s). (Excluding passports damaged or missing at point of transit or entry).
In the event an immigration fine is announced or raised against the Carrier, the Carrier will make available to the Handling Company all supporting documents to investigate the matter.

SUB-SECTION 2.3.4handling of baggage between areas

NEWto support RESOLUTION 753
SUB-SECTION 3.1.9Baggage Tracking
(a) Provide (b) Arrange for (c) Operate system to provide
1. Evidence of acquisition;
2. Evidence of delivery;
3. Inventory of bags, upon departure of flight;
4. Data exchange (e.g. with other airlines)

NEW"Moving Aircraft" Scope
SUB-SECTION 3.8.3
(a) Provide (b) install (c) remove
Aircraft steering bypass pin.

Handles "Shipment records"
Addresses EDI and FSU electronic messaging, ( also paper prints !)
SUB-SECTION 5.3.1
...airwaybill = airwaybill or shipment record. …
(j) Receive and process EDI messages (FWB/FHL and e-CSD) received from Carrier or other parties.
(k) Upon request from the Carrier print air waybill copies in plain paper copy or IATA resolution 600A format.
(l) Provide and transmit EDI messages in accordance with the standards of the Master Operating Plan.
(m) Inform airline or shipper about shipment status via FSU message in accordance with the Master Operating Plan.

NEW
SUB-SECTION 5.3.5
Prepare additional documentation required for Dangerous Goods Transportation by road and/or maritime

SUB-SECTION 5.7
Irregularities Handling IS NOW BACK IN SGHA !
Cargo & Mail IT, Maintenance function support

SUB-SECTION 6.2.2
Perform the following functions in
(a) Carrier's system (b) Handling Company's system (c) other system
for
1. Cargo EDI messaging (IATA cargo-imp or IATA cargo-xml)
2. Post office mail handling
3. Maintenance reporting
4. Other functions

RE-STRUCTURED and DETAILED
SUB-SECTION 7.4.2 (Provide/ Arrange for)
searching of
1.flight deck
2.upper deck
3.main deck
4.lower holds (front, rear, bulk)
5.crew compartment(s)
6.galley(s)
7.Lavatories
8.wheel wells
9.other, as specified in Annex B

SUB-SECTION 7.4.3
(a) Provide (b) Arrange
for
1. guarding of
2. sealing of
(i) aircraft
(ii) designated areas
(iii) baggage in the baggage make-up areas

SUB-SECTION 7.5.1Ground Security Coordinator
Editorial changes and text clarifications

Annex B:

SUB-PARAGRAPH 3.1 - Handling in case of return to ramp
Disbursement proofs
Any disbursements made by the Handling Company on behalf of the Carrier will be reimbursed by the Carrier at cost price plus an accounting surcharge of %. In order to claim such disbursements, the Handling Company shall provide receipts, invoices or any reasonable evidence substantiating such disbursements.

SUB-PAR. 6.1
Dealing with payment disputes
In the event the Carrier disputes any charge or fee set forth in any invoice, Carrier shall pay the undisputed portion and notify the Handling Company of the discrepancy in billing. Both parties shall then seek in good faith to resolve the disputed amount(s). Upon the resolution of any disputed amount the Carrier shall promptly pay the balance due to the Handling Company.

Quality driven termination clause
SUB-PAR. 8.3.2.
In the event of the Handling Company's material and sustained failure to perform the services as outlined in Sub-Article 5.3 of the Main Agreement, Carrier reserves the right to provide the Handling Company with written notice to the effect that correction is required within (__) days. If the Handling Company fails to reasonably correct the situation within (__) days, the Carrier may terminate the Agreement upon an additional (__) days prior written notice.

SUB-PAR. 8.3.3.written notice in case of service quality failure

Overall editorial and renumbering