A new policy at Toronto’s Pearson International Airport includes penalties for contractors that fail to meet service standards, including baggage handling.
“We’re looking to change behaviour,” Flint said.
The airport has issued about $130,000 in fines thus far, the spokesperson said. The GTAA doesn’t call them “fines,” but rather uses the legal term “liquidated damages,” said the spokesperson. They are calculated on the level of impact the company’s delays are having on the system, and on the estimated cost associated with failing to meet expected service levels.
The rules do allow for extenuating circumstances, such as emergency events or delays beyond the contractor’s control.
The airport has three airlines that hire their own baggage handlers: American, Delta, and Air Canada. The rest use four licensed contractors: ATS, Menzies, Swissport, and GTA dnata.
Pearson has not invoiced the airlines that hire their own handlers for liquidated damages, the spokesperson said. “But they and all airside operators are still held to the same service-level standards contained in our ground operations manual.”
The spokesperson added that “GTAA is looking at using liquidated damages to influence behaviour elsewhere at the airport.”
Pearson has about 10,000 new employees, an increase of 22 percent since last summer. That includes the hiring of 130 new staff in May to help with baggage handling, busing, and terminal operations.
Artificial intelligence is now helping with baggage at Pearson as well. An AI system detects potential breakdowns in the baggage system before they occur.
GTAA says biometric e-gates are expediting customs clearance.