newstodate.aero
APR 08, 2005 (newstodate): -A decline in general tariffs to many destinations and continuous increases of fuel surcharges has nothing to do with the over-all income and success of a GSA, says Kales Airline Services in a comment to yesterday's story on GSA, airline relations in newstodate.
-The main function of a GSA is to look after the airlines' overall commercial interests and promotion of the airlines' routes and network. A commission-based arrangement on net yield between the airline and the GSA is the most convenient and transparent way, sharing in good and bad times, says Peter Kales, Kales Airline Services CEO.
-If agents and GSA companies start complaining now that commission is not paid on actual costs like e.g. fuel, they do not understand that operating an airline - burning fuel being one of their main costs - can only continue if we all are prepared to accept these additional charges which are direct costs to the airlines and not profits.
-It is the GSA's function to keep the market fares at the highest possible level in a mutual interest, and if they go down to a level which is not in line with the costs, the GSAs have to work harder or find a better mix of cargo and/or improve yields. Again, why would an airline otherwise need or use a GSA?
-Yes, prices do decline, but volumes still grow, and airlines offer more space. It means that with the right staff and management, a GSA can, by having more volumes but - ok - less net commission per kg, still achieve the same income. As GSA in a very competitive industry, we are more than happy, and it keeps us active in the market. In the end maybe, also in our industry, only the professional GSA companies with the right mix will survive.
-With own offices all over Europe and China, the Kales Group will be serving more than 90 different airlines. Combining trucking, handling and of course sales and management services we can spread over a mix of airlines which again is the idea, function and most importantly the added value of a company like Kales Airline Services, says Peter Kales.
-The main function of a GSA is to look after the airlines' overall commercial interests and promotion of the airlines' routes and network. A commission-based arrangement on net yield between the airline and the GSA is the most convenient and transparent way, sharing in good and bad times, says Peter Kales, Kales Airline Services CEO.
-If agents and GSA companies start complaining now that commission is not paid on actual costs like e.g. fuel, they do not understand that operating an airline - burning fuel being one of their main costs - can only continue if we all are prepared to accept these additional charges which are direct costs to the airlines and not profits.
-It is the GSA's function to keep the market fares at the highest possible level in a mutual interest, and if they go down to a level which is not in line with the costs, the GSAs have to work harder or find a better mix of cargo and/or improve yields. Again, why would an airline otherwise need or use a GSA?
-Yes, prices do decline, but volumes still grow, and airlines offer more space. It means that with the right staff and management, a GSA can, by having more volumes but - ok - less net commission per kg, still achieve the same income. As GSA in a very competitive industry, we are more than happy, and it keeps us active in the market. In the end maybe, also in our industry, only the professional GSA companies with the right mix will survive.
-With own offices all over Europe and China, the Kales Group will be serving more than 90 different airlines. Combining trucking, handling and of course sales and management services we can spread over a mix of airlines which again is the idea, function and most importantly the added value of a company like Kales Airline Services, says Peter Kales.