Friday, May 24, 2024
Changing demands in the GSSA sector

Changing demands in the GSSA sector

As the GSSA market continues to evolve, companies operating in this industry aim to provide comprehensive services to airlines and other clients. 

This includes offering tailored solutions for cargo and passenger handling, marketing, and other services based on the unique needs of each customer. In a highly competitive market, GSSAs strive to differentiate themselves by employing advanced technology, leveraging their networks, ensuring regulatory compliance, and providing excellent customer service.

Additionally, some have extended their offerings beyond traditional services to cater to market shifts and emerging trends, such as e-commerce logistics and digital transformation. 

Ultimately, the main role and target of GSSAs in the evolving market are to act as trusted partners to their clients and help them operate more effectively, efficiently, and sustainably amid the challenges and opportunities in the aviation industry.

“In recent years, the air cargo, logistics, and aviation industry in Europe and the Americas has witnessed changing market demands due to the pandemic,” Julia Knecht-Ostwaldt, Strike Aviation Group’s Chief Operating Officer for Europe, said. 

“However, Strike, as a major player in the industry, has observed that our niche market has been relatively less affected by the massive economic shifts compared to other sectors. We attribute this resilience to our specialised focus and adaptability to meet the evolving needs of our customers in a rapidly changing landscape.”

READ: Strike Aviation’s global ascent: From Europe to Southeast Asia

Sustainability and innovation

GSSAs play a role in helping their customers achieve their goals. Firstly, GSSAs can assist their clients in adopting sustainable practices by providing guidance on reducing carbon emissions, optimising fuel efficiency, and implementing eco-friendly initiatives throughout their operations. They can also support customers in navigating sustainability regulations and certifications. Furthermore, GSSAs are well-positioned to facilitate technological innovation for their clients. They can offer insights and recommendations on leveraging emerging technologies such as artificial intelligence, and blockchain to streamline operations, enhance efficiency, and improve customer experience. 

“By staying up-to-date with industry trends and collaborating with technology partners, GSSAs can help their customers stay competitive and adapt to the changing digital landscape. Finally, GSSAs can play a crucial role in expanding their customers’ networks. With their extensive industry knowledge and established relationships, GSSAs can connect their clients with strategic partners and stakeholders, helping them access new markets, forge collaborations, and expand their reach,”  Knecht-Ostwaldt added. “By supporting their customers’ sustainability initiatives, driving technological innovation, and facilitating network expansion, GSSAs contribute to the overall growth and success of their clients in the aviation and logistics industry.”

Technology, such as artificial intelligence (AI) and automation, can greatly improve efficiency for GSSAs. By automating tasks like data analysis and report generation, GSSAs save time and reduce errors. AI-powered chatbots enhance customer support, while customised avatars automate the creation of explanatory videos for training purposes. AI algorithms enable GSSAs to analyse customer preferences and identify collaboration opportunities. 

“Strike, for example, already uses AI and customised avatars to automate the production of explainer videos for internal and external training purposes. These technologies streamline operations, improve decision-making, and enhance collaboration,” Knecht-Ostwaldt highlighted.

READ: Strike Aviation takes flight on the global stage

Industry adjustments

In the air cargo, logistics, and aviation industry, GSSAs have observed a shift in the balance between the bellyhold and freighter market as the industry returns to the new normal. 

With the decrease in passenger flights during the pandemic, there has been a significant reduction in available bellyhold capacity for cargo transportation. 

As a result, there has been a greater reliance on freighter aircraft to meet the demand for air cargo services. Companies have adapted by increasing the utilisation of freighter aircraft or converting passenger aircraft into makeshift freighters to bridge the gap left by reduced bellyhold capacity. 

This shift has led to an increased demand for dedicated freighters, especially in industries where time-sensitive and high-value cargo are transported. While the bellyhold market is expected to slowly recover as travel restrictions ease and passenger flights resume, the pandemic has highlighted the importance of a robust freighter market to ensure the continuous flow of goods. 

“As the industry reaches the new normal, we anticipate a more balanced approach between bellyhold and freighter operations, with companies leveraging both modes to optimise capacity and meet evolving customer needs,” Knecht-Ostwaldt said.

“The future of the airfreight industry will be shaped by the e-commerce boom, sustainability initiatives, and technological advancements. The exponential growth of online shopping is driving increased demand for airfreight services, while the industry is under pressure to reduce its environmental impact and adopt more sustainable practices,” she continued. “Technology, such as digitisation and automation, will play a significant role in streamlining operations and improving efficiency in the airfreight sector.”

Picture of Edward Hardy

Edward Hardy

Having become a journalist after university, Edward Hardy has been a reporter and editor at some of the world's leading publications and news sites. In 2022, he became Air Cargo Week's Editor. Got news to share? Contact me on Edward.Hardy@AirCargoWeek.com

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