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   Vol. 14  No. 66
Monday August 17, 2015

ECS Accentuates India

ECS Accentuates India

     Paris-headquartered ECS Group Chairman and CEO Bertrand Schmoll loves the Indian market.
     “It is one of the best in the world,” he exclaimed as ACNFT caught up with him during his recent visit to Delhi.
     It turns out the CEO of the GSSA makes quarterly trips to India and has witnessed the changes taking place in infrastructure at both big and small airports around the country.


Hands On Bertrand


     “You have all the tools to become the key market in the world,” Bertrand Schmoll said.
     “Here is an influential population that is increasing.
     “But only a small part of that population is flying today,” he said.
     That is what he is optimistic about, because the numbers are surely going to go up in the future.
Add to that the number of low-cost carriers that are developing.
     “The country is changing… the number of aircraft is rising and that is good for cargo,” proclaims Mr. Schmoll.


Deal With Air Asia

     Upbeat about the tie-up with AirAsia India, Mr. Schmoll mentioned that ECS was “very happy with the partnership.
     “AirAsia is a growing airline. They have five aircraft that will increase to eight. They are seeing growth in terms of passengers.
     “As we continue our partnership on a long-term basis, they will benefit since cargo adds additional revenues.
     “It is a perfect partnership for us,” the CEO said.
     It was around this time last year that AirAsia India appointed Global Air Cargo India (with Rajendra Dubey as Country Manager), part of the ECS Group, to manage its cargo sales.
     At that time, Mittu Chandilya, CEO AirAsia India, said that the carrier had “left it to experts to handle cargo while we will concentrate on the passenger side, which we know better.”
     AirAsia India is one of the few low-cost carriers to have its total cargo operations managed by the ECS Group.
     The GSSA has been able to deliver according to AirAsia India’s expectations because the business model followed is custom made where, for example, the fast turnaround times at airports have been factored.
     The carrier demands no delays due to loading and unloading of cargo.
     Today, the tie-up with AirAsia India has provided the global GSSA the opportunity to offer services to its clients—ECS handles Saudia, Tiger Airways, and even Etihad—around the subcontinent.
     For instance, currently Saudia in the U.S. can move cargo to Indian airports served by AirAsia India.
It is the same with cargo from India.
     The other airlines ECS serves from India with global GSSA agreements are Brussels Airlines, Ukraine International Airlines, and Camair.
     To serve AirAsia India and its other clients—“We are always looking for other carriers,” Schmoll said—ECS has set up its own offices.
     “Now we have more than 120 employees operating from 19 cities in India,” he said. The CEO, however, was quick to point out that the number of offices or employees was “not significant when compared with the size of the country.”
     Even so, Mr. Schmoll considered “India to be one of the best successes of the group and we did not buy anything.
     “We created everything from scratch and I think after 3-4 years this development (19 offices and 120+ staff) is an achievement,” he said.


ECS Growth Patterns

     ECS Group’s expansion in India, despite the region’s inherent infrastructural woes, is not surprising.
According to recent air cargo figures, GSSAs have taken a major share of the market: more than 20 percent of worldwide revenues were generated through sales under GSSA agreements.
     ACNFT asked Mr. Schmoll for the reasons behind this growth.
     “It was important,” he said, “to maintain high standards of service.
     “Airlines want more dedicated services today.
     “They want more commitments from our side.
     “The thinking in many carriers underwent a change: cargo,” said Schmoll, “is more important for them than in the past.
     “Therefore, they are expecting more from us—they are expecting more ideas from us not only about how to increase tonnage, but also yields.”
     “These carriers not only want GSSAs to sell point-to-point cargo, but also to a larger network or destinations with better yields—in short everything that can increase their revenues,” Mr. Schmoll declared.
     “As for ECS: We have proved that we are able to bring solutions to airlines and ideas that increase their revenues.
     “We are well positioned to answer to these new challenges,” emphasized the CEO.
Tirthankar Ghosh

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