Wednesday, July 24, 2024
Acquisitions in Asia top priority for Air Logistics Group

Acquisitions in Asia top priority for Air Logistics Group

Air Logistics Group sees further consolidation in the general sales agents (GSA) market in Europe and is looking to invest in Asia this year.

Chief operating officer, Stephen Dawkins (pictured) tells Air Cargo Week: “We foresee consolidation in Europe and continued investment in IT to better service our airline clients. We are planning further acquisitions in Asia and anticipate double digit growth in this part of the world again in 2016.”

Dawkins explains that in 2015 it saw further pressure on yields, as the Chinese economy slowed and there was continued overcapacity, but for Air Logistics it was another positive year of sustained growth.

“After a thorough and comprehensive tender process, Air Logistics Group secured a large worldwide airline contract with a focus on African destinations. This was one of the main highlights of 2015,” he explains.

The GSA performed well in all regions, but Dawkins says in Europe it saw single-digit growth and busiess was especially buoyant in Asia where it posted double-digit growth.

Dawkins notes the Chinese market continues to be challenging on yields and overcapacity, but he says it has little impact on Air Logistics as it only has minor operations in China.

The company now has a network of 81 offices across 48 countries and he feels the combination of expert local knowledge and the strength of a financially well-backed corporation will lead to more business and carrier contracts this year.

As for the challenges ahead, Dawkins says they are similar to the last decade: “The normal challenges that we have been able to overcome for the last 10 years – overcapacity brings pressure on yields and as such we continue to strive to control our costs while ensuring we maintain the highest levels of customer service for the airline clients we represent.”

Further consolidation is a natural progression in the industry in the view of Dawkins and he is sure there will be further consolidation of GSA companies across the globe “because that is what our airlines demand”.

Dawkins adds: “Airlines demand a wider reach, financial security and the delivery of the highest level of customer service. Our airline clients know where the business is, we need to ensure we deliver the highest level of customer service to secure the business on behalf of our airline clients.”

His outlook for the air cargo industry is upbeat and he sees an exciting two years ahead if fuel remains low, as he feels it may allow new airline entries into the marketplace.

Dawkins concludes: “There will also be further investment in online bookings and the e-AWB; however our industry cannot lose sight of talking to its client base and listening to their demands and expectations.”

Picture of James Graham

James Graham

James Graham is an award-winning transport media journalist with a long background in the commercial freight sector, including commercial aviation and the aviation supply chain. He was the initial Air Cargo Week journalist and retuned later for a stint as editor. He continues his association as editor of the monthly supplements. He has reported for the newspaper from global locations as well as the UK.


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