newstodate.aero
APR 07, 2005 (newstodate): Business is increasingly tough for cargo GSAs that face added responsibilities without remuneration.
-Our sales commission, normally around five percent, from airline principals is calculated on the cargo rates that have kept basically unchanged during the recent years. But beyond this the work loads and liabilities have sky-rocketed, says a leading Nordic cargo GSA that prefers to remain anonymous.
-On the top of the cargo rate, airlines have launched and, indeed, continuously increased a number of surcharges including fuel and security surcharges.
-The crux is that the collection of these charges with the forwarders remains the task and responsibility of the GSA without any compensation or remuneration by the airlines. Noone can question the fact that these extra burdens require manpower, administration and financing to cover the liabilities involved.
-Add to this that airlines increasingly require dedicated staff to handle their business at the GSA office, dedicated phone lines and other dedicated services, and the picture of a defenceless industry emerges, he says.
-Unless the airline industry ultimately takes heed of these warning signals the only viable long-term result from these developments will be a decreasing number of GSA providers to serve an increasing number of clients which in itself generates a clash of interests that is not to the benefit of the airlines, nor the GSAs and the air cargo industry, he says.
-Our sales commission, normally around five percent, from airline principals is calculated on the cargo rates that have kept basically unchanged during the recent years. But beyond this the work loads and liabilities have sky-rocketed, says a leading Nordic cargo GSA that prefers to remain anonymous.
-On the top of the cargo rate, airlines have launched and, indeed, continuously increased a number of surcharges including fuel and security surcharges.
-The crux is that the collection of these charges with the forwarders remains the task and responsibility of the GSA without any compensation or remuneration by the airlines. Noone can question the fact that these extra burdens require manpower, administration and financing to cover the liabilities involved.
-Add to this that airlines increasingly require dedicated staff to handle their business at the GSA office, dedicated phone lines and other dedicated services, and the picture of a defenceless industry emerges, he says.
-Unless the airline industry ultimately takes heed of these warning signals the only viable long-term result from these developments will be a decreasing number of GSA providers to serve an increasing number of clients which in itself generates a clash of interests that is not to the benefit of the airlines, nor the GSAs and the air cargo industry, he says.