GSSA sector shows potential

GSSA sector shows potential

To effectively navigate challenges, it’s crucial to have a deep understanding of both the cultural environment and potential headwinds. This foresight allows companies to address issues before they arise.

While digital platforms facilitate booking and managing some businesses, a significant portion relies on regular consolidation and direct customer interaction. Maintaining regular contact with customers helps those in the industry to understand their needs and offer tailored solutions.

“Our strategy focuses on strong customer relationships and service quality, which has been key to our growth,” Ingo Zimmer, CEO of ATC Aviation, stated. “We’re celebrating our 35th anniversary in Germany this year, and our global network now spans 34 countries.

“We’re experiencing growth levels even higher than pre-Covid-19. Our monthly production has recently surpassed 20 million kilogrammes globally. This puts us ahead of the overall market recovery, which is progressing but at a slower pace.

“We’ve seen a substantial increase in tonnages as our existing airline customers increased their capacities. For example, Sichuan Airlines manages 17 weekly A330F freighter flights out of Europe each week. ANA is back with flights from Munich. Kuwait Airways now operates year-round widebody aircraft to Germany. We have also gained a number of new contracts, such as T Way from Europe operating A330 pax aircraft to Korea.

“To stay competitive, we continue to embrace digital advancements like e-booking and artificial intelligence. We’re also implementing cost-effective solutions by offshoring some back-office functions while maintaining local sales teams.”

Target markets

Looking at the global picture, China continues to experience a strong e-commerce boom, which is expected to last at least until early 2025. This ongoing trend presents significant opportunities.

Other markets, such as Vietnam, Hong Kong and Korea, are also showing substantial growth. India has seen a surge in tenders and investment opportunities due to high demand. Despite a slightly soft market in South America, there are also possibilities to expand networks and maintain a long-term presence.

Regarding Africa, ATC Aviation has developed a successful operation in South Africa with Airlink, but the broader African market presents limited opportunities due to fewer stakeholders and less market potential.

“As we head into the final part of 2024, focus areas include adapting to market changes, leveraging technology to optimise operations, and maintaining strong customer relationships,” Zimmer explained.

“The ripple effects of these factors will influence the airfreight industry as a whole, impacting demand, capacity, and overall industry dynamics.”

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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