Air Logistics Group goes the extra mile in service

The important role played by cargo General Sales and Service Agency (GSSAs) and General Sales Agents (GSAs) often goes largely unrecognised, by the larger industry. But for airline these players provide an important revenue source in challenging markets or where the carrier has no coverage. Manfred Singh speaks with Air Logistics Group on what makes them successful in the market.

Iperating relatively quietly in the background since it gained its AOC in 1999, CAL Cargo Airlines made the strategic step last year of replacing its two B747-200Fs with two, more modern B747-400ER freighters – one leased and one purchased from the former Lufthansa Cargo joint venture Jade Cargo. As Eyal Zagagi, CEO of CAL Cargo Airlines put it, “we’ve started 2015 on the right foot with two upgraded fully operational aircraft.”

If there was any doubt as to the value of the services rendered by this part of the air cargo industry, the recent international air cargo figures from WorldACD, reveal that cargo GSSAs and GSAs combined have seen a substantial growth in revenues.

In fact, well over 20 per cent of global airline cargo revenues came from sales through GSA agreements. Data suggests that sales through GSAs were higher than those from other sources in Asia Pacific, North America, Middle East and South Asia. Two regions that GSAs did not do well were Africa and Latin America. GSSAs like Air Logistics Group (ALG), with its group headquarters in Paris, assist air carriers to achieve a cost-effective presence in a market where it could be uneconomical for an airline to maintain its own sales force and premises.