Smulders explains how a company agent can be influenced by the services a GSSA sells: “Typically, a GSSA has a very close relationship with the airline`s handling agent and monitors that handling agent by providing him with daily LAFs (freight booking lists) that display all the fees set aside for a given flight”” Says. “The GSSA also tells the handling officer what type of equipment, such as containers and pallets, should be used for a given flight.” The GSA receives a commission of about 3 to 5% on all business tickets and cargo areas sold in the region it represents. The ramp-up of freight distribution personnel is creating a new dynamic in the Airline-Boden-Handler relationship. The Russian airline UTair has named TEK Poseidon , the Russian member of the 1GSA network, in its freight sales. Given Boeing`s forecast that the global air cargo market will grow by 5 to 6 percent per year over the next 20 years, there is a 3.2 percent increase in global GDP, creating demand for nearly 2,500 new processed cargo ships by 2029 – many cargo cakes. Airlines are increasingly looking for a single stop solution to manage large global volumes, a strategy that the GSSA network has developed to address them. Michael Meagher, executive vice president, Saudi Airlines Cargo Company, says his airline`s distribution strategy is changing across Europe to reflect changing market dynamics. “Our medium- and long-term strategy is to expand our range of freight objectives, increase our market share and expand our product range,” he says. “This appointment fits perfectly into this strategy and I am sure it will be a success.” In addition, GSSAs also engage on the ramp and often monitor the ramp officer during the rotation of the aircraft. It may even decide what export load will prevail in the event of unforeseen payload restrictions, such as weather conditions or high passenger loads. At the import site, GSSA organizes a trucking for the forwarder, one shipment of which is destined for a station other than the arrival airport.
“For air freight in general, the distribution agent industry has grown in importance over the past decade as some airlines have tried to reduce their distribution costs,” says Ambik. Because the GSSA operates exclusively on its territory, the handling officer generally considers the GSSA as a support, receives instructions from the GSSA and usually accepts cargo and structural information. The main question for carriers and airlines is whether this win-win relationship can stay the course. With the increase in sales in third parties, the links in the value chain inevitably increase. Maintaining this smooth integration is essential if freight is to remain in large periods. Open Skies will be a charter freight sales agent in North America for hunt -Palmer Cargo Charters based in the UK…. Of course, the effects of a GSSA are not only felt in the sales book. A sales agent does provide a one-stop shop for airlines. Many operational requirements, such as contract management and logistics, fall within their scope, which guarantees quality and requires deep integration into the organization of an airline.