This is a sample lesson from the IATA SGHA-SLA & Effective Negotiation Behaviors Workshop. In this workshop, we cover the Standard Ground Handling Agreement section by section, giving you the foundations to write the Annex B and Service Level Agreement accurately and effectively. Through technical training and exercises replicating today's global marketplace, we'll also show you how to enhance cooperation, efficiency and savings in your negotiations. For more information on the course, visit our website: http://www.iata.org/training-sgha-sla

1. SGHA-SLA & Effective Negotiation
Behaviors Workshop
Preview lesson: Service Level Agreements
IATA Copyright © 2012
IATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors
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2. Service Level Drivers
 What is required
 Expectations
 Cost
 Compromise and negotiation
 Reality versus perception
IATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors

3. Service Level Agreements
Both parties have to agree on
 What to measure, making clear why
it should be measured (is it really
important?)
 How to measure it (units,
periodicity, limits)
 How to use the results of the
measurements
IATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors

4. SLA expectations in the past
Doing business was more simple; there was little
necessity to set up service level agreements
 One airline per country
 One handler per airport
 Fewer aircraft types
 Higher profit margins
 Subsidized service
 Similar service expectations
IATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors

5. SLA expectations today
Greater need to define service levels and monitor
performance
 Market liberalization means more airlines
 Product differentiation (low-cost, charter, regional)
 Alliances
 More competition for ground handling providers
IATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors

6. Cost
Goal is to keep the level of
service offered within Airline
High
expectations (on the red line)
Level of service
Below the line = failure,
inconvenience, negative business
image, higher risk, loss of revenue
Low
Above the line = higher cost,
Airline expectations waste of resources (a nice result;
however, customers are rarely
Low High
willing to pay higher price)
IATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors

7. Setting SLA targets
 Set high targets on safety-related
items (it is possible to achieve
100%)
 Aim for continuous improvement
 Maintain realistic expectations
during negotiations – no one is
perfect!
IATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors

8. Setting SLA targets
Set SMART targets to avoid
ambiguity
 Specific
 Measurable
 Agreed
 Realistic
 Time-related
IATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors

9. Compromise and negotiation
 Selling and buying: getting what you need for the
best price
 Negotiation: trading and swapping concessions to
reach a mutually acceptable deal
IATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors

10. … and remember
When negotiating the SGHA and
SLA, don’t compromise safety.
Don’t agree on targets that force
staff to work under extreme time
pressure.
IATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors

11. Find out more about this course at:
www.iata.org/training-sgha-sla
For other Ground Operation courses, visit:
www.iata.org/training-groundops
IATA Copyright © 2012
IATA Copyright © 2012 SGHA-SLA & Effective Negotiation Behaviors
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