GSSAS


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AIR CARG O WEEK


A REVIVED GSSA SECTOR


BY Edward HARDY


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ollowing a period of uncertainty during the Covid-19 pandemic, the GSSA market has returned to more stable conditions. Since the second quarter of


last year, the industry has resumed


normal operations, allowing for more accurate valuations and renewed discussions with potential partners. This stability


has reinvigorated the market, making it easier to evaluate and pursue acquisition opportunities. With normality returning, ECS Group has engaged in a surge in acquisition


activity within the GSSA sector, with several high-profile deals taking place. This expansion strategy is twofold: organic growth and acquisitions. “We believe there is still significant potential to expand our market


share,” Adrien Thominet, Executive Chairman of ECS Group, stated. “We’re diversifying our service offerings, especially with digital tools,


which are opening up many new opportunities for us. “Additionally, we’ve embraced a new trend in the form of global


partnerships, such as our collaboration with CMA CGM. This partnership represents a unique hybrid solution and introduces a new approach to cooperation within the GSSA sector.”


Depth of knowledge By acquiring leading GSSAs in key markets, ECS Group can leverage local expertise while integrating their business intelligence,


tools, and networks to create immediate synergies. This approach not only strengthens the acquired companies but also enhances the overall capabilities of the acquiring GSSAs, allowing them to offer more comprehensive services to their airline partners. “The primary asset of a GSSA is typically its management team, so


our first priority is to partner with someone who aligns with our DNA and values,” Thominet continued. “Once we establish this alignment, we immediately bring in our business


intelligence, technology, and digital tools, which create synergies and foster development for both parties. Additionally, we leverage our network to exchange resources and opportunities, benefiting both sides.”


Regional potential Africa has emerged as a particularly attractive region for GSSA expansion. The lack of well-established GSSAs in this region presents a significant opportunity to apply expertise. In addition to Africa, Southeast Asia remains a key area of interest, offering further opportunities for growth. “Africa is a key focus for us,” Thominet stated. “We believe that we can


replicate our expertise and success in Africa, particularly in West and Central Africa, where we’re actively seeking opportunities. “Additionally, we continue to explore prospects in Southeast Asia, where


we see significant potential for growth.”


Digitalisation with the personal touch GSSAs are increasingly investing in digitalisation and technologies that bring new solutions to the market. These investments are not just about creating platforms for booking or revenue management; they are about offering airlines innovative tools that enhance their operations in ways that were not possible before. While digitalisation is transforming the GSSA industry, especially in


operational areas like bookings and tracking, the importance of personal relationships in commercial dealings remains. Digital tools are essential for efficiency, but the ability to tailor offers to individual customers through direct interactions continues to be a crucial aspect of the GSSA business. “We are keen to support businesses that introduce groundbreaking


approaches and create new opportunities in the industry,” Thominet explained. “Personal relationships remain crucial for creating tailored offers for customers, so a blend of digital and personal interactions is essential.”


digital


Wider impact Interestingly, the innovation process has also led to unexpected social benefits, such as upskilling staff who were previously engaged in manual tasks and redeploying them to more customer-focused roles. Digitalisation is also driving greater transparency in the industry,


particularly for shippers who need to understand and ensure they are paying the right price for the services they receive. “Shippers are increasingly negotiating directly with airlines, especially


in e-commerce. This direct engagement helps shippers ensure they are getting fair prices and clarity on what they are paying for each service,” Thominet highlighted. Beyond operational efficiency, digitalisation is crucial for creating a


sustainable and attractive industry. “Attracting new talent and demonstrating our ability to drive change is


a key ESG (Environmental, Social, and Governance) focus. To address this, we’ve introduced a new initiative to expand beyond our traditional services by bringing in talent from outside the logistics industry to fill various roles,” he added. “This is why we’ve created what we call ‘The Abilities’—a new set of


services that we are offering in addition to our core business. We’re hiring people from outside the industry, not just to work in GSSA roles but to manage various activities. “We’re actively attracting individuals to join this industry and help


develop new capabilities. This, to me, represents a significant and exciting social development that we are driving forward.”


www.aircargoweek.com 23 SEPTEMBER 2024 ACW “The primary


asset of a GSSA is typically its management team.”


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