Having appointed Frederick Overton as its Global Head of Cargo, AVIAREPS is looking to tap into the airfreight industry.
“Currently, most of our aviation clients are focused on the passenger side. That said, we’re actively targeting both airline customers and freighter operators,” Overton explained.
“I’ve been tasked with growing the cargo sector at AVIAREPS, and one of our strengths is that we don’t have much baggage from previous years. We aren’t constrained by the traditional ways cargo has always been done.”
The move comes during an interesting time for the air cargo, with significant growth in e-commerce, especially coming out of Asia, creating some challenges—particularly in terms of feeding into Asia, especially from Europe.
“There’s a major supply-demand imbalance between the amount of freight heading into Asia and the capacity available to handle it. This is especially challenging for flights heading east out of Europe, particularly into China and neighbouring countries.” Sustainability is another ongoing challenge for both the airline industry and the General Sales and Service Agents (GSSAs) representing them.
“When we talk to customers, they are increasingly concerned about the environmental impact of air freight. We need to present them with the right solutions, whether it’s sustainable aviation fuel, digitalisation, or other initiatives to reduce that impact.” Innovative approach Focusing on the transformative potential for the industry as digitalisation and sustainability take centre stage, AVIAREPS has partnered with digital booking platforms like Cargo One, WebCargo, and CargoAi to ensure it is offering a seamless experience.
Whether customers are reaching out to local branches, booking online through airline websites, or using third-party booking providers, this innovation can aid in maximising sales across all distribution channels.
“This is where AVIAREPS can really offer valuable insights. With our extensive experience on the airline side, we have a unique perspective,” Overton stated. “One of the first questions I got was, ‘Freddie, what global distribution systems do you use in cargo?’ And I had to tell them, ‘Well, there isn’t one.’ Unlike the passenger side, where systems are widely used, cargo lacks a shared distribution system. In fact, we’re still several years behind the passenger industry when it comes to digitisation. “We do have online booking platforms, but they still require plugins and APIs to connect, and they function more like web comparison tools for air cargo. “Given this, I believe we can offer a lot of guidance on how to embrace digitalisation in cargo and the value it can bring, based on our experience from the airline side.”
Target regions
As for the logistical side, when developing a cargo presence, there are certain areas of the industry that show more potential than others. GSSAs, such as AVIAREPS, are always looking at which regions and cargo segments might present easier opportunities for growth or have the most potential for expanding their presence.
“When we approach an airline, they often mention challenges like ‘Our GSSA isn’t performing well in this country,’ or ‘We’re launching a new flight to a destination next year,’ or ‘We want to start offline sales in this country.’ In about 95 percent of these cases, AVIAREPS already has a presence in that market, with an office there and local knowledge. This makes us a true growth partner for the airline, helping them expand,” Overton stated. With Africa rapidly growing in the global economy, particularly with strong export markets in several countries, AVIAREPS sees potential to aid customers in areas underserved by the GSSA sector.
South America is also a market that AVIAREPS is eyeing up with a commitment to the North and South American airfreight sector reflected in the company’s presence at events in the region, where the team has been connecting with airlines that have significant capacity in these regions. “We’ve quickly become very relevant to airlines because of our office presence and the local expertise of the people based in those countries. All of our offices are wholly owned, not franchises or a network of GSAs. We own and operate 74 offices globally, which gives us a unique proposition in the air cargo market,” he concluded.
