newstodate.aero
NOV 17, 2004 (newstodate): Cargo GSAs are increasingly worried by the declining commissions as rates drop and a variety of surcharges are added.
The issue was high on the agenda of FAGSA at its recent AGM adjoining TIACA's event in Bilbao.
As fuel and security charges now soar to constitute 40-50 percent of actual rates, it has become increasingly intolerable to the GSA that commissions are based on rates only not taking surcharges into account, although the GSA still has to collect them on behalf of their airline clients, states FAGSA's newsletter.
-We have lived with these high surcharges ever since September 2001, and they do not account for a negligible part of total payments. We have, therefore, a strong case against the airlines. But we must tread lightly, of course. No GSA will risk losing a good airline by taking the issue to court, saus Helge Luhr, FAGSA president.
-But another fact is that if this situation continues unabated, we cannot maintain our current levels of service to the airlines. We are forced to cut resources to balance the loss of revenue. And we may eventually be forced to swap airlines. Also do not forget that in the end, it is the GSA that actually controls the customer database in his market, says Mr Luhr.
The issue was high on the agenda of FAGSA at its recent AGM adjoining TIACA's event in Bilbao.
As fuel and security charges now soar to constitute 40-50 percent of actual rates, it has become increasingly intolerable to the GSA that commissions are based on rates only not taking surcharges into account, although the GSA still has to collect them on behalf of their airline clients, states FAGSA's newsletter.
-We have lived with these high surcharges ever since September 2001, and they do not account for a negligible part of total payments. We have, therefore, a strong case against the airlines. But we must tread lightly, of course. No GSA will risk losing a good airline by taking the issue to court, saus Helge Luhr, FAGSA president.
-But another fact is that if this situation continues unabated, we cannot maintain our current levels of service to the airlines. We are forced to cut resources to balance the loss of revenue. And we may eventually be forced to swap airlines. Also do not forget that in the end, it is the GSA that actually controls the customer database in his market, says Mr Luhr.