The expectation that the upward trend of recent months in the aviation industry will continue, expressed by Chairman of the Board of Lgs H andling, executive director of Milo O L ouis, Louis Loizou. In an interview with Insider, he states that based on estimates in 2022, traffic at the two airports in Cyprus is expected to be close to 70% of the excellent performance of 2019, ie before the pandemic. Speaking about the goals of Lgs Handling , Mr. Loizou prioritizes the effort to attract more airlines in Cyprus, offering upgraded quality services, at attractive prices, adapted to the environment and the needs of each customer individually.
Do you want to tell us a few words about the services you offer?
LGS Handling Ltd, a subsidiary of the Louis Group, is one of two companies that have been providing integrated ground passenger, aircraft and cargo services at Larnaca and Paphos International airports since 2008, including the co-management of the Executive Business Lounge at Larnaca Airport. The company offers competitive B2B services to more than 80 airlines, as well as a large number of private and military aircraft. LGS employs experienced, specialized and properly trained staff, while it has a large fleet of machines that are necessary for the smooth and fast processing of its work. It is a joint venture between the Louis Group and Goldair Handling, which offers groundhandling services in Greece and other European countries.
What are the company's goals today?
Our goals are to meet the growing needs of our customers, which in our case are the airlines, by providing quality and reliable services, strictly adhering to safety regulations, exactly as described in the compliance regulatory framework. We aspire to help in the effort made to attract more airlines in Cyprus, offering upgraded quality services, at attractive prices, adapted to the environment and the needs of each customer individually. We want to achieve this by operating responsibly with practices that promote safety and health always with respect for the environment, for the benefit of customers and partners, staff, and local communities where the company operates. For this reason LGS employs qualified staff, who are trained on a regular basis. The use of modern applications and machines and the flexibility in decisions contribute to us to constantly progress and lead the way.
Today, automation and digital transformation not only enhance the quality of services offered but also help reduce a company's environmental footprint. What are your actions in this direction?
Technology plays a leading role in the whole range of our services. To achieve effective management of its various operations today, LGS uses various state-of-the-art automated systems that help increase efficiency, reduce accidents and upgrade the quality of services offered. Such systems are the unified system of flight management, work planning and staff training, work planning and maintenance of machinery, the system of control of incoming and outgoing cargo, GPS control of all vehicles and motor vehicles, etc. . We have also recently upgraded our internet connectivity lines and servers for faster access to systems both internally and remotely.
As LGS we will continue to invest in equipment and new technologies, which will facilitate the execution of our work. In addition, wanting to invest in sustainable development based on ESG criteria and reducing our environmental footprint, we are currently preparing a study for the complete replacement of our fleet of machines with other newer generation with reduced or zero emissions. We are already gradually replacing cars and machines with electric or with reduced carbon dioxide emissions. We have also proceeded with the electronic archiving of our documents, achieving maximum paper savings. In addition, we have created “environmental corners” in our offices, where we have placed paper and battery recycling bins. From time to time we carry out internal information and awareness campaigns, encouraging our staff to use them.
To what extent did the pandemic affect LGS and the aviation sector in general?
The aviation sector is unfortunately one of the areas where the pandemic hit irreparably, as countries closed their borders early in an effort to stop the spread of the disease. To better understand the magnitude of the negative impact of the pandemic, I will give you some indicative statistics. According to travel data and statistics company Cirium, global passenger traffic in 2020 is estimated to have fallen by 67% compared to 2019, to levels last seen in 1999. According to another analysis by Oxford Economics , it is estimated that the pandemic was the main reason for the reduction of the turnover of the airports worldwide in 2021 by 57%, compared to 2019. Inevitably, the domino of negative developments due to the pandemic resulted in the closure of 64% of the world fleet in 2020 and lose 2.3 million jobs.
In Cyprus, according to official Hermes statistics until September 2021, the negative impact of the pandemic in 2021 resulted in a consequent reduction of 63% in passenger traffic, 55% in the number of commercial flights and 20% in tonnes of cargo, compared to the corresponding period of 2019.
As far as LGS in particular is concerned, I can not hide from you that we had a very difficult time, as the airports were closed for months due to the restrictions, while the expenses were running. We are currently facing a very serious staffing problem, as many people have chosen to leave their work in the sector due to prolonged uncertainty.
Aside from the pandemic challenge, what other challenges do you face?
Two other important challenges are the management and training of human resources but also the continuous compliance with the various regulatory frameworks, which results in the provision of appropriate certifications.
Regarding the first, we consider as a top priority the continuous education and training of our company's human resources. For this reason we have created internal special training centers, which are staffed by certified and specialized trainers of ANAD, IATA and the International Civil Aviation Organization. Our training centers have the latest technology equipment and all staff members (old and new) pass through them at regular intervals to receive the required training and certification, according to the standards of airlines and international airport security organizations. and flights. In order to prevent accidents, we have an internally certified health and safety officer, who inspects the daily observance and implementation of regulations throughout the range of our work. In addition, we have incorporated the institution of the “occupational doctor” for all our staff. Our constant goal is to create a balanced, safe and healthy working environment, where our staff will be able not only to work, but also to be constantly trained. It is important to mention that the quality and environment officer of the company systematically ensures that every operation of the company is governed by the relevant regulatory standards, while achieving quality upgrades of the services offered.
Regarding the second, as a company we work to constantly enrich and update our knowledge and to obtain in time all the necessary certifications, because they are simply part of our work and are required by our customers. At the moment our company is certified with the standards ISO9001, ISO14001, OHSAS 18001 and EMAS. These quality standards help us not only to maintain and monitor good practices in all areas of our work but also to constantly improve, by constantly reviewing the goals we set as a company.
LGS closes this year 14 years of successful business presence in the Cypriot market. Where do you think this success comes from?
LGS is the only Cypriot interest company licensed at Cypriot airports. It is an evolution of Louis Aviation Services, which has been active in the field of passenger and cargo services since 1947, at the time of Nicosia Airport. Over the years, and having as a legacy the long experience and know-how of the Louis Group, one of the longest-lived and pioneering groups in the field of tourism in Southeastern Europe, we have proven to be excellent partners and experts in the field of ground passenger and aircraft services. and cargo, as well as travel and tourism in general.
However, the key ingredient in the success of LGS all these years I would say is our people. The human resources of the company work with us with dedication, passion and ambition for a number of years, contributing decisively to the levels of satisfaction of our customers. Our customers have realized the timeless effort we make as a company for safe and reliable service, as well as targeted investments to upgrade the quality of our systems, elements that certainly contribute significantly to our long-term successful presence in the field. The ease with which our company adapts to new processes and practices make it highly progressive and flexible, a fact that is appreciated by our partners.
What do you think are the reasons that will push someone to come and work for LGS ?
First of all, I believe that the airport environment is a very attractive workplace, with monotony absent. The continuous training we offer to our staff, as well as the right practices and the observance of all safety regulations make LGS an ideal employer for those who want to pursue a career in the field. As LGS we work to ensure a modern, enjoyable, safe work environment for both our staff and our guests and passengers. We have also been certified by the National Certification Body for the implementation of good practices regarding gender equality in the work environment. We invest in our people and aim to hire the most suitable for each role, giving opportunities for continuous development.
I find it important to mention that LGS remains active in matters of corporate social responsibility. In fact, he is a founding member of the Cyprus Association of Corporate Social Responsibility, with a position on the Board of Directors of the Association. Some of the corporate social responsibility actions are e.g. blood donation at the two airports, the collection of food and clothing, the financial support of charities and other public benefit institutions, the free provision of services, etc. A recent example is LGS 'indirect contribution to extinguishing this summer' s fires in Arakapa. As a company, we provide non-profit ground handling services to all aircraft of the Forest Department, as well as to aircraft coming from abroad in order to assist in extinguishing fires.
What is your forecast for the course of the aviation sector in Cyprus in 2022?
Surely we all know that we will continue to live with the effects of the pandemic for quite some time to come, and this is something that applies to all areas of activity, not just the aviation sector. However, we hope that the upward trend of the last few months will continue. In 2022 it is expected that traffic at our airports will be close to 70% of the 2019 numbers.
