Lower rates will drive GSA growth in Asia, says ECS

Asia remains a difficult market for aglobal GSA like European Cargo Services(ECS), but that should change asair freight rates fall, predicts its presidentand CEO, Guy Tordjman. “Competition is increasing in Asia,and rates will not stay so high, so airlineswill have to compensate by reducingcosts,” he says. “They will then seethe need to turn to GSAs […]


Asia remains a difficult market for aglobal GSA like European Cargo Services(ECS), but that should change asair freight rates fall, predicts its presidentand CEO, Guy Tordjman.

“Competition is increasing in Asia,and rates will not stay so high, so airlineswill have to compensate by reducingcosts,” he says. “They will then seethe need to turn to GSAs much more than they have in the past.”

To be ready for that day, ECS continuesto try and develop its networkin the region, using Singapore as thebase for ECS Asia. From here it isexpanding to the rest of China andHong Kong, mainly using the GlobeAir brand that it has rolled out overmuch of Europe.

Tordjman says the company alsohas “two or three projects pending” inMalaysia, and Indonesia, saying that itwould like to make acquisitions in thesecountries and elsewhere in Asia.

“But it is not so easy as in Europe,because, for example in Malaysia, cargoGSA businesses are not independent.They are involved in passenger trafficor freight forwarding, and sometimesare more brokerage companies or consolidatorsthan GSAs. We want to haveindependent cargo GSAs on the same model as we have in Europe.”

Dubai has also proved somewhatharder going than expected for thegroup, though it did open an office atthe new Jebel Ali airport in January.