Global reach with the right people is key: ALG
The future for GSAs is bright according to Stephen Dawkins, COO and Founder of Air Logistics Group (ALG). Tough times see airlines increasing their outsourcing in a bid to cut costs and share risk which bodes well for GSA/GSSAs such as Dawkins who have the global reach and experienced people on the local ground. Michael Mackey reports.
July 1, 2014
Business is always on the up for an organisation like ours” Dawkins told Payload Asia in an interview. This boldness might shock some in the air cargo business, but his logic and experience carry the argument even to the point where losing contracts is a sign of success.
It starts with a premise that is familiar to us all; every business is looking to cuts costs. This is especially true of airlines where fuel costs are considerable and rising. The freighter business is a cause of financial hurt and the waves of capacity entering via the passenger markets will force down yields further.
All this adds to the pressure to let someone else do it and fits into the airline industry pattern of letting someone else do it. “More and more airlines are outsourcing their cargo business. They are looking for specialists who can share some of the risk,” he said.
This is the opportunity (and risk) Air Logistics has taken (and won). “We are double digit,” Dawkins said. “We are dealing with plus 15 per cent growth a year for the last ten years.”
Helping Air Logistics win that business, worth some US$655 million is the global reach of the company from Tokyo in the East to Los Angeles in the West. Or put another way representing 156 airlines on six continents and being in 79 offices in 47 countries.