Title: The impact of general sales agents on the air cargo industry

Authors: Peter Hosie; Ming K. Lim; Marcus Chng

Addresses: Curtin Business School, Curtin University, Faculty of Business and Management, University of Wollongong in Dubai, Dubai 20183, UAE ' Aston RFID Advanced Research, Engineering Systems and Management, Aston University, Birmingham B4 7ET, UK ' Business Development and Sales United Aviation Express Pte Ltd, 45 Airport Cargo Road, Unit 212, Dnata Cargo Centre Changi Airfreight Centre, P.O. Box 857, 918112 Singapore

Abstract: A General Sales Agent (GSA) is an airline's outsourcing counter part that markets and manages cargo services. An empirical investigation is undertaken to ascertain whether GSAs contribute economically to the air cargo industry using three'litmus test' indicators: 1) contribution to the airline's sales and profitability by expanding operating networks; 2) viability as a marketing option for emerging or struggling airlines to help cut operating costs to reduce prices; 3) cost-effective GSAs were found to establish an airline's market presence through wide network coverage and good local knowledge, leading to an expansion of airline's operating networks and generating greater sales revenue.

Keywords: supply chain management; SCM; outsourcing; air cargo; air freight; general sales agents; economic contribution; airline sales; profitability; operating networks; operating costs; price reduction; sales revenue.

DOI: 10.1504/IJLSM.2012.049705

International Journal of Logistics Systems and Management, 2012 Vol.13 No.3, pp.393 - 416

Published online: 10 Dec 2014 *

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