Cargo GSA’s in Asia Supplement~ GSAs facing global solutions challenge
The challenges facing airlinesÂ¡Â¯ general sales agents (GSAs) a decade ago would pale when compared with the present dayÂ¡Â¯s complexities and tough business environment.
June 1, 2008
One of the biggest issues facing GSAs today is their ability to provide global solutions to their airline customers who are scrutinising every issue, including GSA services, in a worldwide context.
“Nowadays, airlines would look for global solutions rather than have a different GSA serving them in various countries
like five or 10 years ago,” says Julie Shek, Marketing Manager of Dyna-Trans (Hong Kong) Ltd, which is the GSA for Air Malta and Sichuan Airlines, and also for Air Hong Kong in the Hong Kong/Manila and Hong Kong/Peking sectors.
To meet the airlines’ global GSA challenge, a number of larger GSA companies have already expanded their own networks, or are in the process of doing so, while the smaller GSA companies without their own networks are trying to expand their coverage by making commercial agreements with other counterparts for co-operation and, also to work with them on a sub-contract basis.
“Although a number of carriers have their own offices and run their own operations, there is still demand for GSA services. This is because having a GSA can enable the carriers to swap the high fixed cost of their own operation for a uniform cost that relates directly to how much revenue the GSA generates,” Shek says.