An airline GSA is a third party - that provides marketing and
sales services to an airline under the airline's brand, usually
in countries where the airline does not have service to (or has
very limited service to).
The GSA brings a local infrastructure, market knowledge and
sales processes and is able to provide sales and marketing
assistance to an airline without the airline having to incur the
expense to build up their own staff in the country.
The GSA receives a commission of around 3–5% on all tickets and
unit of cargo space sold in the region that it
Consider a GSA outsourced sales & marketing assistance.
All costs related to running the GSA's business are the
responsibility of the GSA including but not limited to
rent, general office expenses and any travel within the country
or region needed to promote /sell the product.
Definition of Services that a GSA could offer:
A GSA has identified five key areas of support from which the
Airline will derive significant benefits.
1. Sales and Marketing
The GSA's management team should initiate the following
Market Research, Agent Sales, Off-line Sales, Interline Sales,
Consignee Sales, Telephone Sales, Advertisings
Periodical Visits - Close Contacts, Trade Receptions, Promotions
New Product Research
2. Freight Reception and Handling
Cargo Reception Facilities could be provided at the Airport.
3. Airport Warehouse and Ramp Supervision
Liaison with the Airline, cargo handling agents, ground
handling companies and customs.
Adherence to the Airline's and Governmental security
Adherence to Priority List
Arranging weight and measurement checks.
ULD Loading and ensuring maximum utilization.
Dispatching pre-alerts to all receiving stations.
4. Administrative Services
Liaison with the Airline, Airport handling agents and
Post Flight Information.
Cargo Tracing - Claims.
Airway bill distribution - Stock Control.
5. Financial Services
The GSA will issue an irrevocable bank guarantee in favor of
the Airline for all revenues collected on Airline's behalf.
The GSA currently uses the "cargo" accountings system to produce
all revenue accounting and management information.
It also provides reservations, booking advices and sales
The GSA will undertake all invoicing and collection of monies
from cargo customers within the territory.
The payment will be supported by a detailed remittance advice.
6. Brief Sales & Marketing Strategy
Select Advertising in local trade media. This is to be
reconciled between the GSA and the Airline.
Targeted Mail shots (Direct Mail)
A new tariff together with information regarding service details
Concentrated Sales Drive
The GSA would suggest that suitable promotional items are
made available to coincide with the sales drive which will be
undertaken by the members of staff. This procedure will be
repeated at appropriate intervals in addition to the normal
sales activities described in previous sections.
Thought the GSA's established network of offices, new
business will be developed in association with selected
partners and in particular with those represented by the GSA. A
further benefit that will be realized by such arrangements
will be the reciprocal advantageous interline rates offered to
According to IATA, GSA contract is on a commission basis
revenue that will be accorded between the GSA and the Airline,
excluding Ramp Supervision and Terminal Handling. The amount of
commission required can be different if certain items
are provided at the Airline's expenses, like advertising, trade
reception, other marketing strategies, etc.