Oct 14, 2024
According to market data provider for air cargo operations, WorldACD, General Sales Agents (GSAs) account for a significant 25% of worldwide air cargo sales. Meanwhile, Paris-based ECS Group notes that General Sales & Service Agents (GSSAs) represent airlines to commercialise airfreight capacity and supervise complex local operations and administration services.
The GSA/GSSA market is a segment of the aviation and logistics industry focused on the sales, marketing and operational management of airlines’ cargo service.
The GSA is an organisation appointed by an airline to handle its sales and marketing activities in regions where the airline does not have a direct presence. GSAs act as intermediaries, representing the airline and promoting its services to travel agents, cargo agents and direct customers. GSAs typically earn a commission on sales made on behalf of the airline.
A GSSA provides a broader range of services than a GSA. In addition to sales and marketing, a GSSA also handles operational tasks such as cargo handling, documentation, customer service, reservations, and sometimes even ground handling. Essentially, a GSSA acts as the airline’s representative in a specific region, managing both commercial and operational aspects.
Some well-known global GSSA companies include Air Logistics Group, ATC Aviation Services, ECS Group, Globe Air Cargo and GSSA International. These companies have a strong presence in multiple regions, offering a range of services that cater to different airline needs.
The global expansion of e-commerce, coupled with increasing international trade, has driven demand for air cargo services. This growth benefits the GSSA market, as airlines seek to expand their reach into new regions without necessarily establishing a direct presence.
Local market knowledge
By leveraging the local market knowledge, established networks and infrastructure of GSSAs, airlines can focus on their core operations without significant investment in local offices and staff.
The GSSA market has seen some consolidation, with larger companies acquiring smaller ones to increase their global footprint and capabilities. Strategic partnerships between GSSAs and airlines have also become more common, providing tailored services that better meet the needs of both parties.
Regional differences
The role of GSSAs can vary significantly across different regions due to factors like local market conditions, regulatory environments and cultural differences. In some regions, the market is highly competitive with many players, while in others, a few large players dominate.
Challenges and trends
Digitalisation is reshaping the GSSA market. New technologies, such as online booking platforms, automated systems, and data analytics, are being increasingly integrated into the operations of GSSAs. These technologies enhance efficiency, improve customer service, and offer better insights into market trends and performance. With growing concerns over environmental impact, there is a push towards greener practices in the aviation industry. GSSAs may be required to adapt their operations to comply with new regulations and market expectations around sustainability.
GSSAs must navigate a complex web of international regulations, which can vary by country or region. This includes compliance with customs regulations, aviation safety standards, and data protection laws.
The GSSA market is expected to continue growing as airlines seek cost-effective ways to expand their global reach and as air travel and cargo demand increase. However, this growth will be accompanied by increasing competition, digital transformation, and pressure to adapt to new environmental and regulatory standards.
The post GSSAs commercialise airfreight capacity appeared first on Air Cargo Week.
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Author: James Graham