Why "little d" dnata has such big ideas

Dnata – or dnata as the company now wishes to be known – has come a long way. From five men and a couple of bikes at the launch of Dubai National Air Travel Agency in 1959, the division has quietly expanded around the world.

It now has a presence in 73 airports, in 38 countries, on five continents, with more than 65% of its 20,000 staff working outside of the home hub of Dubai.

Part of the recent renaissance is a makeover that sees not just a new branding but, for the first time, the gathering of all the disparate entities under the dnata name. Instead of relying on the reputations of the companies that have been acquired, dnata is at last confident enough to trade under its own name solely.

Gary Chapman, president group services and dnata, explained the change: “We have moved from a Dubai-centric business into one that is truly global. We are handling more passengers, more cargo and more aircraft outside of Dubai, so that triggers a new way of thinking about the business.”

Through a series of acquisitions and expansions, dnata has quadrupled revenue in the last six years. The purchase of Alpha in December 2010 was a watershed event. It was the fifth significant acquisition in the airport services sector in four years and consolidated dnata’s position internationally. But change was in process even before that.

“We started the review of the way dnata is positioned in April 2010 but it was a long process,” said Chapman. “We asked our customers and staff how they saw dnata. The answer was a little surprising. They saw us as dependable, solid and reliable, but lacking spark or oomph.

“We were seen as being able to get the job done but even our own staff did not really appreciate how big we were. We needed something to improve our communication. We needed to lift that image, to bring sparkle, imagination and delight to our customers.”

On April 28 this year, the company launched the new ‘one dnata’, with a flourish, showcasing the new logo, vision, mission and values.

Chapman said: “Initially I wasn’t looking for a new identity. We had been very successful. We had won awards. I was worried that it would be interpreted that we hadn’t done well. We had; we just could do better.”

Following the launch, senior management undertook a series of visits, introducing the new concepts to the staff and customers.  According to Chapman the new fresh, clean and uncomplicated identity has been well received by both groups.

The rethink is more than external dressing. Chapman wants to ensure that the standard of service Cathay Pacific receives in Australia is the same in Singapore, Pakistan, Switzerland, London and Dubai. “I have to make sure that we are delivering the same standards to the same expectations. Where they see dnata they know they can rely on us to be consistent, so that is why they should see dnata, not Plane Handling or Toll Dnata. It was understood as business to business, but the staff were separated. When we spoke to the subsidiary companies it became obvious that they also felt it was time to embrace dnata,” he said.

“We have 10 working groups going on at the moment, looking at processes, the standards that we set, our safety standards and communication. We are looking at the ratings and certifications that we get. We are looking at how we procure our equipment.”

Although coming under the dnata name, this does not mean everything will be run from Dubai. Chapman is not in favour. “Centralising is not the answer; I want to give them more freedom, but having some governance in place and strong communication. I don’t have to procure all the equipment centrally but I do need to be able to link it together so that I can get the best deals from suppliers. I need to know that we are co-ordinated.

“We also can’t afford to have a problem in one area spilling over and creating problems elsewhere. I want to get the synergies and the benefits of what is going on and what we are learning in other locations. There is a phenomenal amount of experience right across the network, which we need to tap into.”

The new way of thinking should also bring opportunities to staff across the group, with greater movement between countries. Chapman said: “We have had Singapore staff going to Australia to work on projects and staff from Australia in Singapore. We have also had people from Plane Handling going to Erbil, helping out there and wanting to go back.  The interesting challenge is how to get everyone plugged in so that we can make them aware of opportunities. We will create the right platform for that. Then it is up to them.”

Staff will also be recognisably one company, with a standard uniform being introduced globally, from the ramp staff to the travel agencies – no mean feat given the wide range of climatic conditions and cultural considerations.

Chapman is pleased with the progress: “User trials are on-going, with uniforms in the material we are going to use and the design, but not the patterns or the colours. We are keeping that until the launch in May next year. It will be head turning.

“There is a tendency for the ground handlers not to have the same polish and impact as airline staff such as cabin crew and we want to step it up both in training and appearance. We have groups working on both of those aspects. It has got to be something that the staff are proud to wear. If you can’t get that pride then it is going to be a constant challenge to make them feel pride in what they are doing.”

One criticism levelled at the division in Dubai is that it is easy to be successful when you are the only player, as dnata is the only ground-handling option for carriers using Dubai International. Chapman dismisses the challenge. “There is a very western connotation of monopoly, implying high prices, poor service, and exploiting the situation,” he scoffed. “That does not work in this environment, where aviation is so strategic to Dubai and to the region. 

“If for one minute Dubai felt that we were overpriced or offered poor service, I would not have a job and we would not be allowed to continue in that vein, as it could have an impact on Dubai’s aspirations in the aviation industry. There are checks and balances that make sure it doesn’t happen.

“Talk to an airport owner and ask which model they would prefer? Would they like to have four, five, or six ground handlers, all with their own equipment, congesting the airport, all on margins that perhaps don’t allow them to invest in people and equipment? Or would they prefer to have a single professional high quality operation, which is good value for money and can invest in new equipment and safety and standards and people. It is a no brainer.

“So while we get a bit of criticism from time to time, what makes the other model the right one? Our prices are 50% cheaper than India, and one quarter or one fifth of prices in France, Germany or the UK. So don’t tell me that our model is not the right model.”

The president believes that the company’s global spread has improved performance in Dubai as the group learns and applies best international practice. He said: “We have put a lot more emphasis on the customer focus. We listen to our customers here in Dubai, as we do elsewhere around the globe, because we have to.”

The rapid expansion may have slowed for the moment, but new ventures in the ground-handling and catering areas are currently under consideration. As it has done in the past, the division will continue to look at opportunities. Chapman is prepared to wait for the right proposition. “We are not driven by a desire to have a global presence for the sake of it. We are not in the Americas in any significant way and I have no plans to. It is a very mature and difficult market in which to operate, but there are lots of opportunities elsewhere, particularly in the Far East, where we see a lot of growth and potential, and the African continent.”

The success of past acquisitions has been a combination of strategy and opportunism, with the management team proving a canny ability to pick up good prospects at a fair price.

Chapman said: “We have been quite smart and focussed. We have looked at businesses that are at our standard already, but also where there is room for improvement, where we feel confident that we can bring about that improvement. We have to get what we consider a reasonable return.

“When we do acquire businesses we don’t trade them or sell off parts. It is our core business and we invest in it. In the UK we have invested about £5 million in equipment. In Singapore this year we have invested Sing$11 million and our customers and staff see that,” he added.

So will the new, confident, independent dnata look to break away from the overshadowing sibling and the shelter of the Emirates Group? Chapman says not now.

“While dnata is a core part of the Emirates Group, we run our businesses quite separately in terms of the management, the accountabilities and the financial performance. Dnata serves many international airlines and is the general sales agent in Dubai for nearly 40 airlines, which are competitors of Emirates. We need to make sure that we deliver a service independent of any group consideration. We have to do what is right for our customers. I think that we have proven that we can do that and that we are objective.

“On the other hand, there are obvious benefits to being part of the Emirates Group. We have common services and support costs, which perhaps work to our advantage. There are times when you can benefit from being part of the Emirates Group and there are times when it may not be the best path. Overall do I think it is the right thing? Yes I do. I think we are very much embedded in so many ways. This is Emirates’ home base. We operate and support its growth here in ways that a traditional ground handler might not, in terms of the airport and the investment required in facilities, manpower and equipment.”

He added: “It is interesting what is going on out there. It is a competitive environment and there is a lot of uncertainty in the aviation world. But I think our businesses have a solid base and we are trading well at the moment, and long may it continue.”