The GSSA sector has emerged as an essential component in shaping capacity and pricing models for the airlines it represents. Beyond these functions, GSSAs are integral to delivering digital solutions that enhance airline operations. In TAM Group, by leveraging our extensive global networks and partnerships with numerous carriers, we maximise opportunities for our carriers while maintaining strong connectivity across diverse markets.
Flexibility and expertise
In TAM, we are not confined to managing only online capacity demands; we also specialise in offline solutions, enabling us to adapt swiftly to shifting market dynamics.
“The challenges faced by the sector go beyond pricing, encompassing geopolitical issues and other external factors that influence airline networks,” Anindam Choudhury, Vice President, Commercial at TAM Group, explained. “In response, GSSAs apply deep local market expertise to help airlines thrive in the diverse regions where they operate.”
Since Covid-19, the sector has grappled with fluctuating rates, shifting demand, and periods of capacity oversupply. These challenges have underscored the indispensable role of GSSAs in helping airlines navigate volatility. “During this time, many airlines began to truly recognise the value of GSSAs,” Choudhury noted. “Entering new markets can be complex for carriers, and adapting to changing market dynamics adds further difficulty. With large, experienced teams stationed globally, GSSAs like TAM Group help airlines maintain operational balance effectively.”
To stabilise returns in the face of fluctuating rates, we focus on high-yield cargo such as perishables and e-commerce shipments while maintaining a balanced approach that includes general cargo. For example, on routes between China and South America, we handle premium cargo like cherries and salmon, alongside managing e-commerce flows between Asia and Europe. At the same time, we ensure consistent support for general cargo such as auto parts, garments, and other essential goods. In regions with limited volumes or capacity, such as Thailand and Malaysia, the focus shifts to perishable cargo including seafood and durian. This strategic balancing of cargo types ensures optimal rates for carriers while meeting evolving market demands.
Driving progress through innovation
Technological advancements are reshaping the GSSA sector, with AI, automation, and digital tools playing pivotal roles. Staying ahead in this area is no longer optional but essential for operational efficiency and customer satisfaction. TAM was one of the first amongst a handful of GSSAs who recognised this early and began integrating technology into their operations years ago.
“Nearly six or seven years ago, we adopted a CRM platform that provides customers with real-time updates on flight and cargo status,” Choudhury shared. “We have since integrated AI tools and plan to launch a more robust platform by mid-year to enhance both operational efficiency and customer experience.”
e-commerce growth
The rise of e-commerce has significantly impacted strategies within the GSSA sector. In global hubs like mainland China and Hong Kong, we have established direct relationships with major e-commerce companies in triparty arrangements along with key forwarders – an innovative approach that positions us as key facilitators in connecting carriers with fast-paced e-commerce demands.
“We’re one of the few GSAs with this level of engagement,” Choudhury stated. “Understanding the importance of speed in e-commerce shipments, we have collaborated strategically with carriers and e-commerce logistics giants through our key Asian hubs to tap into this fast-growing sector.”
Commitment to sustainability
Sustainability is becoming a cornerstone for GSSAs as ESG initiatives gain prominence across industries. Many GSSAs are actively supporting carriers in achieving net-zero emissions goals while integrating sustainable practices into their operations.
“Over the last two years ago, we played a pivotal role in supporting one of our partner carriers’ key sustainability initiatives by implementing 100 percent sustainable practices across four territories” Choudhury revealed. “Although some freight forwarders remain hesitant, we ensured the carrier met its sustainability goals.”
Beyond supporting airlines’ environmental objectives, GSSAs are mindful of sustainability in their day-to-day operations—whether through minimising waste at events or collaborating with ground handling agents to optimise processes. “Although the airline industry’s carbon footprint remains a significant challenge, we recognise the importance of taking responsibility,” Choudhury emphasised. “We constantly strive to improve our practices to contribute to a more sustainable future.”
