In a sector facing tight capacity, volatile demand, and new digital and sustainability pressures, general sales and service agents (GSSAs) are repositioning themselves as vital strategic partners rather than intermediaries.
For airlines under pressure to cut costs and adapt to shifting global trade, the GSSA model offers both resilience and flexibility. Equipped with data tools, local expertise, and a growing suite of digital platforms, these firms are increasingly steering how capacity is sold, how operations are streamlined, and how customer relationships are managed. And while technology continues to reshape air logistics, GSSAs are making the case that they will remain central to its future.
From sales agents to airline partners
The role of the GSSA has always been about connecting airlines and freight forwarders. But industry leaders argue that today, the relationship has moved well beyond simple sales representation.
“We are actually thinking and acting as an airline,” says Sebastiaan Scholte, Chief Executive of Kales Group. “We truly believe that a partnership relationship is a lot better than simply a supplier–customer relationship. We are already offering total cargo management solutions successfully to airlines, where we take the total control of the cargo department.”
This idea of stepping into an airline’s shoes has become a recurring theme. Drawing on years of multi-airline experience, Scholte says GSSAs can bring “the best in class total solutions” by sharing best practices across markets.
Crucially, he points to data and automation as the foundation of this expanded role. “GSSAs need to be ahead of the curve in terms of market intelligence and smart digital solutions. At Kales we have a wealth of actionable data, both externally and internally, where we can make better decisions for the airline. Also current AI technology allows us to be more efficient.”
Jean Ceccaldi, Chief Executive Officer of ECS Group, echoes the idea that integration is reshaping expectations. “For ECS Group, this convergence has redefined our GSSA model. Today, everything is connected: pricing decisions, capacity planning, operational visibility, and sales follow-up,” he explains.
Tools such as SKYPALLET, which help optimise ULD usage before confirming bookings, or real-time operational platforms like Carrier App and Pathfinder, mean that sales teams can now act with an awareness of execution. “This integrated approach boosts responsiveness and reliability—key expectations from our airline partners,” Ceccaldi says.
Aytekin Saray, chief executive of Global GSA Group, stresses that the digital shift is an opportunity rather than a threat. “At Global GSA Group, the shift toward digital cargo sales is embraced as both a challenge and an opportunity to evolve,” he says. “Our approach integrates advanced digital tools which allow us to optimise capacity allocation, enhance market visibility, and deliver real-time analytics that support both airlines and freight forwarders. While digital channels grow, we continue to prioritise personalised service through our global network… This hybrid model keeps us relevant in a digital-first environment without sacrificing the relationship-driven expertise airlines expect.”
For Sascha Wiesner, Managing Director of Galaxy Air Service, the strength of the GSSA lies in its ability to adjust quickly in complex environments. He highlights the role of European hub investments, such as at Frankfurt, Leipzig/Halle, Liège and Maastricht, in changing regional cargo flows. “It really changes the way cargo flows. For us, it means faster handling, better slot management, and ultimately more reliable schedules. Also, this provides us more diversified options to offer to our customers. As a GSSA operating in Germany, this helps us make the most out of our available capacity, and it gives us more flexibility.”
The power of data
If there is one theme uniting the sector, it is digitalisation. From predictive analytics to mobile booking apps, technology is not only making processes faster but also shifting how GSSAs engage with both airlines and forwarders.
“Predictive analytics allows ECS Group to steer capacity and pricing with precision, even in unstable or rapidly changing markets,” says Ceccaldi. Through platforms such as Live Capacity, the company monitors route dynamics, competitor activity, and demand trends. “This intelligence feeds into our pricing decisions, including those made through our Quantum Pricing Support System, enabling tailored offers and better yield control,” he adds.
Wiesner notes that digital booking tools are already indispensable when dealing with persistent European capacity constraints. “Capacity is always tight, especially for westbound traffic. Digital booking tools help us a lot here—forwarders expect quick answers and clear visibility, and technology allows us to give them that. It’s becoming increasingly about reacting quickly to what’s available in the market.”
He stresses that it is not just airlines and forwarders who need to be kept in the loop: “The warehouses and truck providers are also kept in this information flow to secure the delivery slots and handling processes.”
For Scholte, digitalisation must be embraced rather than feared. “We should embrace more digitalisation. It could be more disruptive for our industry and the way we work, but the role of a GSA will not go away in the future,” he argues. Even with digital bookings, “there is still a lot of human intervention in the whole process, what will not change in the foreseeable future.”
Saray adds that innovation hubs are also accelerating change. “Being part of Aerion’s modular ecosystem and partnering with CargoTech has allowed us to fast-track innovations by connecting developers directly with operational teams,” he explains. “This ensures that the tools we bring to market are not only advanced but also practical and immediately beneficial for airlines and forwarders.”
He also points to regulatory consistency as a critical factor. “Global GSA Group ensures consistent service quality and regulatory compliance across diverse and sometimes fragmented airport and customs environments by combining strong local expertise with advanced digital tools and a people-first approach,” Saray says. “Our ISO 27001 certification further demonstrates our commitment to data security and compliance with international regulations.”
Resilience in uncertain times
Geopolitics, tariffs, and regulation are never far from the airfreight conversation. And here too, GSSAs say they play a role in helping airlines and forwarders navigate the turbulence.
“Geopolitical tension of any kind hits air cargo,” says Yilmaz. “Sometimes flights need rerouting, insurance costs go up significantly, and schedules get stretched. As a GSSA, it is our biggest responsibility to keep everything clear about cancellations, and additional restrictions to be implemented during such times to avoid any avoidable breaches in the logistics phases.”
Ceccaldi highlights the importance of proactivity. “Proactivity is everything in cargo—and real-time tools are what enable it,” he says. “Our teams use alert dashboards and mobile notifications to monitor shipments in real time. These tools help us intervene before an issue becomes a problem—ensuring better service and fewer disruptions.”
Meanwhile, Scholte underlines a paradox familiar to many in the sector. “I always say that unfortunately whatever is bad for the world, is good for air cargo, with the exception of economic crisis.” Crises, he notes, tend to accelerate reliance on GSSAs rather than diminish it.
For Saray, resilience also comes through diversification. “Diversifying geographically helps mitigate risks associated with any single market’s geopolitical or economic volatility and enables us to capture growth in underserved corridors,” he says, citing recent partnerships in Latin America and Africa. “Both Latin America and Africa are areas where we continue to see promising developments.”
He notes that sector-specific expertise also builds resilience. “Global GSA Group deploys specialised vertical teams equipped with comprehensive SOPs and enhanced real-time data analytics to meet the distinct needs of key segments,” Saray says. “Pharmaceuticals receive dedicated care… automotive logistics are managed for just-in-time delivery… and e-commerce clients benefit from expedited processes and flexible capacity.”
Looking forward, the message is clear that demand for airfreight will remain. “Making bold predictions isn’t easy these days,” says Wiesner. “But one thing we know: cargo keeps flying. Volumes and trade lanes may shift, but there will always be demand for airfreight.”
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Author: Anastasiya Simsek
AGILITY has become the currency of resilience amid a volatile global trade environment marked by geopolitical uncertainty, shifting tariffs, and evolving e-commerce dynamics.
“It is widely talked about in the industry how logistics is reshaping to adapt to geopolitical disruption, political actions on international trade and the environmental impact of freight transit,” Matthew Taylor, Business Development Director at 4RCargo, said.
Air cargo demand is on the rise globally, but Taylor noted it’s not just filling aircraft—it’s changing how capacity is managed altogether. “This has seen a growth in air cargo demand globally, alongside the current trend of e-commerce not just filling, but also driving changes in air freight capacity.”
Against this backdrop, 4RCargo’s strategy hinges on proactive planning and direct engagement. “As a hands-on GSSA (General Sales and Service Agent), we have found that keeping abreast of both industry and mainstream news, working closely with airlines, forwarders and shippers to develop innovative solutions, we can mitigate most of these challenges through technology, being proactive as opposed to reactive and speaking to our partners to address shifting trade patterns early.”
Nowhere was this more evident than in the company’s response to recent shifts in US import tariffs introduced in early 2025. Taylor outlined how such developments only underscore the importance of forward-looking collaboration: “We have recently seen with the changing nature of U.S. import tariffs announced since the start of 2025 that we need to keep ahead of the curve, plan and find ways to keep trade lanes moving—maximising capacity and minimising overhead costs.”
Flexibility to the fore
While much of the air cargo conversation remains dominated by global uncertainty, 4RCargo is doubling down on one region that continues to show remarkable economic resilience: Central and Eastern Europe. With a combination of manufacturing strength, rising e-commerce adoption, and growing air cargo demand, the region has proven fertile ground for expansion.
“The Central and Eastern European markets are going from strength to strength, with Austria’s strong adoption of e-commerce to Poland, Czechia, Hungary and Slovakia showing strong profiles as manufacturing exporters,” Taylor stated. The numbers support his outlook. “Poland alone has the highest economic growth forecast in the EU for 2025 as per IMF projections and this itself feeds demand.”
For 4RCargo, it’s not just about being present—it’s about being embedded. “By offering creative solutions, using the UK’s air capacity surplus and traffic, as well as bringing airlines, forwarders and shippers, our expertise in Central and Eastern European markets has fuelled our growth.”
Taylor was quick to emphasise that their model doesn’t rely on off-the-shelf solutions: “We pride ourselves on being hands on and reliable partners. As a future-friendly, tech enabled GSSA whilst retaining our personable approach and being available to speak and advise our partners whilst working out tailored solutions is what has set us apart.”
This tailored, agile approach has helped the company thrive in a region often overlooked by major global players. “There is never a one solution that fits all, and our team show that being dynamic and agile achieves consistently great results,” he added.
Expanding the playbook
4RCargo’s approach to trade lane development doesn’t begin and end with Europe’s biggest capitals. In fact, it’s in the regions—away from the main airfreight arteries—where the company sees some of its strongest performance.
“Regional airports play a crucial role in our success,” Taylor outlined. Rather than relying solely on major hubs like Vienna or Warsaw, 4RCargo works directly within the manufacturing heartlands. “We have found that consolidating and moving freight from regional airports rather than typical airfreight markets can allow us to bring our operation into the heartland of manufacturing districts with less operational disruption.”
This strategy not only reduces bottlenecks but allows the company to better align its services with the needs of exporters. “With developed strong and interconnected relationships with our partners and customers in the markets we serve,” he added, “this regional approach allows us to be flexible, responsive, and cost-efficient.”
In evaluating new opportunities, 4RCargo leans heavily on its established network of stakeholders across the continent. “We work closely with our network of forwarders, airlines and shippers and of course we look at our European expertise, trends in the market and the need for airfreight to evaluate new opportunities carefully.”
Taylor stated the company is currently eyeing expansion in several directions. “We are currently looking at Northern Europe, the Baltics and Scandinavia as areas of growth as well as broadening our Central Eastern expertise to secondary and smaller markets such as Romania, Bulgaria, and Slovenia.”
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Author: Anastasiya Simsek
At the Caspian Air Cargo Summit 2025, Anna-Maria Kirchner, Head of Global Sales at Finnair Cargo, outlined how the Nordic carrier is tackling the sustainability challenge, with a sharp focus on sustainable aviation fuel (SAF) as the most impactful tool available to the sector today.
Net-zero depends on SAF
Kirchner pointed out that aviation’s path to net-zero by 2050 is inseparable from SAF adoption. “If we continue with our net zero goals for 2050, IATA has calculated that we will need 65 percent of SAF to be fuelled on the aircraft,” she said .
Despite this, progress remains limited. In 2024, just 1.3 million litres of SAF were purchased by airlines in the EU – amounting to a mere 0.3 percent of global consumption . With the EU now mandating a 2% SAF blend, Kirchner stressed that scaling production and uptake is critical to ensuring that airlines can meet their climate commitments.
Finnair estimates that 75 percent of its net-zero pathway will rely on SAF and emerging alternatives such as electrofuels, with the balance coming from new technologies like electric and hydrogen flight once they become commercially viable .
Pioneering new fuels with Liquid Sun
In August 2025, Finnair took a step beyond conventional SAF with a partnership on Liquid Sun, an electrofuel project that uses solar power to split water into hydrogen, which is then converted into renewable fuel.
“Part of the Finnair strategy is preparing for an energy transformation. We have partnered with ABB, Fortum, and Finavia to produce eSAF, which gives us a huge advantage as an alternative or an extra to SAF,” Kirchner explained .
Although still at an early stage, she highlighted that every incremental step matters. “This has just started now in August. It will be little what we get out of it, but we always say every step counts in the journey of sustainability,” she said .
Beyond fuel: operational innovation
While SAF dominates the long-term decarbonisation debate, Kirchner also drew attention to practical measures Finnair Cargo has already implemented in its operations.
Trials are underway using lightweight cardboard pallets, developed by Finnish company Atte, which are 50–100kg lighter than traditional wooden pallets. These provide lower emissions, reduced costs, and reusability on long-haul flights such as those to Seoul .
In line with Finland’s circular economy principles, Finnair has also developed a recycling programme for uniforms, turning old garments into new textiles. In cargo operations, even waste streams are being redirected: unsellable fish from its Helsinki cool hub are now donated to the Helsinki Zoo as animal feed .
Terminals powered by the sun
Another notable step is the installation of 2,990 solar panels at Finnair Cargo’s state-of-the-art hub in Helsinki, opened in 2018. These panels generate 37 percent of the facility’s annual electricity needs, with surplus power fed into catering operations and airport offices during the long days of Finland’s summer .
Kirchner said that while these efforts may seem modest compared to the scale of aviation’s climate challenge, they demonstrate how incremental action adds up. “Rome wasn’t built in a day – and neither will aviation sustainability,” she remarked .
Education and collaboration
Kirchner stressed that collaboration across the aviation value chain is vital, particularly when it comes to standardising emissions reporting and SAF claims. Finnair has partnered with Neste, also headquartered in Finland and one of the world’s leading SAF producers, to create education programmes for forwarders and shippers.
“We hear a lot about reporting. How are the emissions being calculated? What is a booking claim process? How can shippers, how can forwarders, how can we do this together? The most important journey for us is our future, but also how we collaborate with partners in the industry,” she said .
For Kirchner, the most important message is credibility: the industry must “walk the talk.” By investing in SAF, testing new fuels, and embedding circular economy thinking into daily cargo operations, Finnair Cargo is positioning itself as a frontrunner in aviation sustainability.
“Most important is to think about what else we can do to make sure that the planet we’re living in will also be something with a 2050 net-zero target achieved,” she concluded .
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Author: Anastasiya Simsek
The integration of autonomous robots into live airport cargo environments is no longer a hypothetical exercise. In Germany, what began as a research initiative has moved into active deployment, with five autonomous robots having undergone real-time testing at major airports, including Munich and Stuttgart.
Far from lab-based trials or controlled simulations, these robots are navigating the complexities of dynamic cargo hubs—sharing space with humans, vehicles, and the full unpredictability of airside logistics. The ambition, says Manuel Wehner, Project Lead at the Fraunhofer Institute for Material Flow and Logistics (IML) based in Frankfurt am Main, Germany, is to build something that can not only survive but optimise performance in the real world.
“We tested five robots so far along the actual process flow at the airport,” Wehner told Air Cargo Week. “They were not placed next to or behind a fence, but in live operations, transporting containers or loading ULDs at our partner airports Munich and Stuttgart.”
Dynamic environments demand autonomy
Unlike warehouse robots that follow static lines or pre-mapped zones, airport cargo robots must respond to a constantly shifting operational environment. This is not just about logistics; it’s about resilience, decision-making, and safety in high-traffic zones.
“The robot needs to be truly autonomous,” said Wehner. “It needs to find its way if someone parks in its path, or if a tractor unexpectedly passes by. There’s no use having a robot that just stops and waits.”
The project, led by the IML as part of the Digital Testbed Air Cargo (DTAC), funded by the German Federal Ministry for Digitalization and Government Modernization (BMDS) with €13.7 million, has tested robots across various use cases—transporting containers, loading and unloading ULDs, and integrating with terminal gates. These tests aim to identify how robotics can supplement rather than replace human labour, especially in regions with acute workforce shortages. Currently, a new robot for ULD handling is being developed from the scratch in IML’s laboratories, incorporating the findings from previous tests. Furthermore, the DTAC project team is developing AI-based algorithms for predictive cargo operations and hands-on applications for IATA’s ONE Record data standard.
Robots as infrastructure
Another key insight from IML’s field trials is that airport automation is not simply a matter of deploying high-tech machines. It’s about embedding robotics into the wider digital and physical infrastructure. This requires designing a modular control system that allows for multiple robots—often from different manufacturers—to operate in parallel.
“The smarter the control system software is, the less intelligent the single robot needs to be,” Wehner explained. “That’s the key. We can then make the robot cheaper, easier to maintain, and quicker to deploy.”
At the heart of this approach is openTCS, IML’s open-source robot fleet control software. Developed over more than a decade for other industries, it enables plug-and-play integration of different robotic vehicles, supporting scalability without vendor lock-in. openTCS is currently being updated and further developed for airport applications.
“You won’t have to redo the entire work if you change the manufacturer or the robot type,” said Wehner. “You can just adapt the control software and continue operations.”
Lessons from live testing
Real-world deployment has revealed crucial lessons that could never be captured in simulation environments. Issues like misaligned pallets, ambiguous lighting conditions, and inconsistent signage have forced the team to refine robot sensing, mapping, and decision-making in ways that will benefit future rollouts globally.
Wehner describes these small failures as essential to making robust systems.
“It’s a good thing when it fails. That’s how you learn what needs to be improved. If you test only in the lab, you won’t find those gaps.”
This iterative approach is designed to produce systems that can handle airport-specific chaos. The team is also developing training tools and digital twins to simulate full operations before physical deployment, helping airports reduce disruption during rollouts.
With successful pilot phases now underway, IML’s long-term goal is to support airports in building robotics ecosystems that are open, maintainable, and adaptable. The project avoids commercial lock-in by remaining manufacturer-neutral, providing open-source solutions, and focusing on enabling infrastructure rather than proprietary solutions.
“We are not a robotics company trying to sell hardware,” Wehner clarified. “Being a non-profit organization, we’re developing public knowledge and tools that others can build on. Airports can create their own fleets, suited to their needs, and evolve them over time.”
The concept isn’t just for major hubs either. Smaller and regional airports, facing the same labour shortages but lacking automation budgets, stand to benefit the most from modular, low-cost systems driven by smart software.
As more cargo handlers and airports begin evaluating robotics, Wehner believes the industry will need to collaborate on setting digital standards. From data interfaces to fleet APIs, future success will depend on cooperation between manufacturers, IT providers, handlers, and regulators.
“Everyone talks about digitalisation, but if you don’t know what data you actually need or how to interpret it, then it’s useless,” he said. “It’s about what you do with the data, not just having it.”
On behalf of the DTAC consortium, Wehner recently accepted TIACA’s ‘Sustainability Award’ in Hong Kong in June 2025 and an ‘International Award for Excellence in Air Cargo’ in Nairobi in February 2025 for the tests of a heterogeneous robot fleet at the DTAC partner airports MUC and STR in 2024. Furthermore, the DTAC consortium was a top-5 finalist at the ACW World Air Cargo Awards in Munich in June 2025.
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Author: Anastasiya Simsek
Airports are no longer passive gateways in the air cargo supply chain. Increasingly, they are repositioning themselves as central nodes in global cold chain logistics, with direct implications for trade competitiveness, regulatory compliance, and sustainability. For industries such as pharmaceuticals and perishables, where even minor deviations in temperature can lead to significant financial and human costs, airports are becoming the determining factor in whether supply chains deliver efficiency and trust—or fall short.
The shift from airports being service providers to becoming orchestrators of entire ecosystems is now unmistakable. Expert speakers stressed that future growth in air cargo cold chains will depend less on isolated excellence and more on airports’ ability to enforce standards, digitise operations, and integrate with policy frameworks across trade and health.
Airports as the new strategic nerve centres
Pharmaceuticals and perishables already account for an estimated one-fifth of global air cargo value, and that share is expected to grow as e-commerce and healthcare supply chains expand into emerging markets. Yet cold chain inefficiencies remain a global challenge, with the International Air Transport Association (IATA) estimating that up to 20% of temperature-sensitive products are compromised during transport due to breaks in the cold chain.
“Airports can no longer be passive infrastructure providers—they must act as orchestrators,” observed Amritendu Mukherjee, Global Head of Logistics at Dr. Reddy’s Laboratories. For the pharmaceutical industry, the issue goes beyond balance sheets: “A delay or temperature deviation is not just a financial loss but can impact patient lives. That requires airports to deliver predictability and end-to-end transparency.”
This framing underscores the strategic role of airports in maintaining both economic and public health resilience. As trade flows diversify across the Global South, the question is no longer whether airports should act as cold chain anchors, but how quickly they can adapt.
Standardisation as a policy priority
One of the panel’s strongest themes was the inconsistency of cold chain standards across regions. Manish Agnihothri, CEO of WFS Bengaluru Pvt. Ltd., cautioned that despite industry progress, harmonisation remains limited. “Even today, we see inconsistencies in how perishables and pharma are handled between airports. Certification frameworks like CEIV Pharma have created benchmarks, but adoption is uneven. What the industry needs is convergence—not isolated excellence.”
Agnihothri noted that airports are uniquely positioned to enforce uniformity, ensuring ground handlers, customs, and airlines adhere to standard operating procedures. For policymakers, this creates an opportunity: embedding compliance obligations directly within airport licensing and regulatory frameworks could create a baseline for cold chain integrity across multiple jurisdictions.
Airlines and the connectivity imperative
The interdependence between airlines and airports was highlighted as a defining feature of modern cold chains. Mark Sutch, Head of International Development and CCO Cargo at IndiGo, stressed that capacity alone cannot sustain growth. “India’s pharma exports crossed USD 27 billion last year. That growth cannot be sustained without airport ecosystems capable of handling volume with precision,” he said.
Sutch added that secondary and tertiary airports will be decisive in shaping the future of cold chain logistics. “The next wave of cold chain expansion will come from tier-2 and tier-3 airports. With e-commerce, perishables, and vaccines flowing into smaller cities, these airports must be equipped with modern facilities, not treated as afterthoughts.”
The point reflects a wider policy concern: India’s air cargo throughput is still heavily concentrated in a handful of metropolitan hubs. Unless decentralised cold chain infrastructure is developed, congestion risks and regional inequalities will persist.
Cargo terminals: From storage to value-added nodes
Beyond connectivity, cargo terminals are evolving into value-added nodes that integrate data, automation, and compliance. Pramod Pereira, General Manager at Cargo Service Center India, noted that infrastructure without digital capability is insufficient. “Our focus is on real-time visibility and digital integration. IoT-enabled sensors, blockchain for documentation, and predictive analytics are no longer optional—they are essential to prevent spoilage, reduce dwell times, and reassure shippers.”
He added that returns on digital investments are often faster than on physical expansion. “Cold storage capacity is important, but without live data on temperature and humidity, you cannot guarantee compliance. The future of airport cargo terminals lies in combining hard infrastructure with smart technologies.”
For policymakers, this raises questions about incentives. Should trade policy frameworks provide fiscal or regulatory support for digital-first cold chain investments, given their potential to reduce waste and strengthen global competitiveness?
Gaps in Policy and Infrastructure Investment
While industry innovation is moving forward, structural gaps remain. Airports in the Global South often struggle with fragmented regulatory environments, weak multimodal integration, and high logistics costs. According to the World Bank, logistics costs in India stand at around 14% of GDP, compared to 8–10% in OECD economies.
Mukherjee emphasised the need for policy convergence. “Pharma logistics cannot be managed in silos. A vaccine exported from India to Africa will pass through multiple regimes. Harmonisation of customs clearance, packaging requirements, and temperature standards is essential.”
The challenge is not unique to India. Across Africa, Latin America, and Southeast Asia, exporters of perishables face similar barriers—ranging from inadequate cold storage at regional airports to lengthy customs procedures that undermine temperature integrity.
Sustainability pressures: Anticipating global regulation
Another recurring theme was sustainability. Cold chain operations are energy-intensive, with refrigeration, storage, and handling consuming substantial resources. As carbon accounting becomes embedded in global trade through mechanisms such as the EU’s Carbon Border Adjustment Mechanism (CBAM), airports and operators in the Global South face indirect compliance pressures.
Mukherjee warned that sustainability is not an optional add-on. “Cold chain must embed greener practices now. Whether through solar-powered cold storage or energy-efficient handling equipment, the industry will be judged not only on efficiency but also on its environmental footprint.”
This has policy implications beyond aviation. Trade ministries in exporting nations must anticipate how carbon-based trade barriers could affect agricultural and pharmaceutical exports. Aligning airport infrastructure with sustainability standards could therefore be as much a trade policy necessity as an environmental one.
Policy takeaways
From the discussion, several takeaways emerged for regulators, airport operators, and trade policymakers:
From infrastructure to influence
The transformation of airports into cold chain anchors reflects a broader shift in global trade logistics. They are no longer just gateways; they are becoming centres of influence that determine whether supply chains remain competitive, compliant, and sustainable.
For pharmaceuticals, perishables, and other high-value cargo, the credibility of entire supply chains now rests on the ability of airports to deliver predictability, digital transparency, and resilience. As Mukherjee concluded, “Airports are the anchors of trust. If they get the cold chain right, the rest of the supply chain follows.”
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Author: Ajinkya Gurav
Canada’s regional air cargo market is entering a decisive phase of modernisation, with KF Aerospace acquiring its third ATR 72-500 freighter as part of a renewed ten-year contract to operate Purolator’s British Columbia Feeder Network (BCFN). The investment highlights a wider trend across secondary markets: replacing ageing turboprops with fuel-efficient regional freighters that align with sustainability goals, regulatory compliance, and growing e-commerce demand.
For policymakers and industry observers, the move reflects not only a commercial fleet decision but also a structural shift in how regional aviation underpins national trade resilience, connectivity, and climate commitments.
Fleet renewal and policy significance
The replacement of Purolator’s long-serving Convair 580 fleet with ATR 72-500Fs marks a turning point in regional air cargo strategy. The Convair 580, a platform with origins in the 1950s, has long been the backbone of feeder operations across Canada. Yet the aircraft’s rising maintenance costs, fuel inefficiency, and noise and emissions profile place it increasingly at odds with Canada’s climate policy and ICAO’s CORSIA requirements.
By contrast, the ATR 72-500F offers containerised loading and up to 40% lower fuel burn than legacy turboprops. ATR data suggests the aircraft typically consumes around 1,200 kg of fuel per block hour, compared with nearly 1,900 kg for older types such as the Convair. These gains translate directly into lower carbon intensity and improved cost efficiency—two factors central to modern air cargo competitiveness.
The transition supports Canada’s 2030 Emissions Reduction Plan, which targets a 40–45% reduction in greenhouse gas emissions from 2005 levels. With regional feeders operating at high frequency, even incremental efficiency gains contribute significantly to national climate goals.
Regional connectivity as trade infrastructure
Purolator’s BCFN forms a critical artery in Western Canada’s logistics chain, linking smaller communities to distribution hubs in Vancouver and beyond. These feeder services handle a significant share of time-sensitive cargo, from healthcare shipments and perishables to the surging volumes of e-commerce.
According to Statistics Canada, e-commerce accounted for 10.9% of total retail sales in 2024, up from 6.9% in 2019, reflecting a structural shift in consumer behaviour. Canada Post and Purolator together handle more than one billion parcels annually, and regional air cargo ensures that smaller communities remain connected to national and international trade flows.
Fleet modernisation in this context is not only about operational efficiency; it is also a policy lever for economic inclusion. By sustaining reliable access to logistics networks, regional aviation contributes directly to the competitiveness of Canada’s small businesses and exporters.
As Tracy Medve, CEO of KF Capital Ltd, noted: “The acquisition of this third aircraft represents a continued investment in the modernisation of our air cargo fleet. As part of our fleet upgrade strategy for our long-standing partnership with Purolator, this aircraft further supports our commitment to delivering safe, efficient, and reliable service for Purolator’s BC Feeder Network.”
Technical upgrades and domestic MRO integration
The latest ATR 72-500 (MSN 685), acquired from FlyCAA, will undergo a Large Cargo Door (LCD) conversion at KF Aerospace’s Kelowna (YLW) facility. The modification programme includes upgrades mandated under Supplemental Type Certificates (STCs), such as ADS-B compliance and dual Flight Management Systems (FMS), ensuring operational alignment across the fleet.
One ATR has already completed conversion and entered revenue service, while a second aircraft, sourced from ACIA Aero Leasing, is being prepared for bulk-loading operations. All three ATRs are expected to be fully operational by 2026.
By carrying out the LCD conversion in-house, KF Aerospace is reinforcing domestic MRO capability—an often overlooked but strategically significant element of aviation policy. Localising maintenance not only shortens turnaround times and reduces reliance on overseas facilities but also builds technical employment capacity within Canada. The expansion is expected to generate new skilled jobs in British Columbia, aligning with national industrial policy goals around workforce development in aerospace.
Market implications: From obsolescence to modernisation
Across North America, approximately 250 feeder aircraft still rely on legacy turboprops such as the Convair 580, Saab 340, and early-generation Dash 8. Many of these platforms face obsolescence by the end of the decade as regulatory compliance costs rise and parts availability declines.
The shift to ATR freighters is therefore part of a wider market pattern shaped by three core pressures:
For cargo operators, modern turboprops offer a way to reconcile rising demand with cost and regulatory pressures. For policymakers, they provide a template for balancing regional connectivity with sustainability objectives.
Policy takeaways
Outlook
KF Aerospace’s acquisition of a third ATR 72-500F goes beyond a single contract renewal with Purolator. It illustrates how regional cargo operators are aligning commercial decisions with broader sustainability, trade, and industrial policy objectives.
By modernising its fleet, KF not only secures the reliability of Western Canada’s feeder network but also provides a model for how secondary markets can adapt to evolving environmental regulation and market demand. The integration of domestic MRO capacity further strengthens Canada’s industrial resilience, while the alignment with national climate policy positions regional aviation as a partner in meeting broader sustainability targets.
As the aircraft enter service by 2026, the BCFN upgrade will be closely watched by policymakers and industry stakeholders alike. For the air cargo sector, it represents a practical example of how technology, regulation, and trade flows intersect—illustrating that the modernisation of regional fleets is as much about policy as it is about aircraft.
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Author: Ajinkya Gurav
The opening session began with Lars-Gunnar Comén, Director of Euroavia International, who reflected on the disruptive forces repeatedly testing global aviation.
“There is always some kind of disruption in trade, geopolitics, global unrest, COVID-19 or something else affecting the aviation industry,” he said. Stressing the importance of maintaining open markets, he repeated a message delivered at earlier editions: “Free trade is good. Change management will be crucial.”
Comén also acknowledged the long-standing support of Silk Way West Airlines as host carrier, together with platinum sponsor Boeing and a wide group of industry partners. He reminded delegates that the summit’s purpose was not only to debate industry change but to foster “many new business ties and a lot of fruitful discussions here in Baku.”
Delivering welcome remarks on behalf of the Azerbaijani government, Rashad Nabiyev, Minister of Digital Development and Transport, positioned the summit within the country’s wider transport strategy. He described Azerbaijan’s logistics sector as an increasingly “creative agent of global trade,” accelerated by geopolitical realignments that have placed new focus on the Middle Corridor as an alternative east-west route.
Nabiyev noted that Azerbaijan handled nearly 15 million tonnes of cargo last year, an 8.5 percent increase year on year. Air cargo has been central to this growth, with Silk Way operating one of the largest and most modern fleets in the region. Around 95 percent of volumes are transit flows, he said, underlining Azerbaijan’s role as a bridge between Asia, Europe and the Middle East.
Nabiyev highlighted the development of a new international cargo airport within the Alat Free Economic Zone, scheduled to begin operations in 2027. The hub will integrate air, sea, road and rail connectivity, anchoring Azerbaijan’s vision to become a multimodal gateway across the Caspian basin and Central Asia. With incentives such as special economic zones and tax benefits, he argued, the country is attracting major logistics players from DHL to Amazon.
Silk Way Group marks a decade of the summit
Taking the stage next, Zaur Akhundov, President of Silk Way Group, marked the summit’s tenth anniversary as both a regional and international platform. He recalled that the first edition in 2006 hosted only 80 delegates; this year, the event welcomes hundreds of participants from the US, Europe, the CIS, the Middle East, India and China.
“The story of the summit closely mirrors the journey of our airline,” Akhundov said.
Akhundov emphasised the Alat airport and cargo village project as a landmark in the airline’s development. Covering 750 hectares, the hub is being built through a public-private partnership and will provide “unprecedented opportunities for trade along the Middle Corridor” while strengthening Azerbaijan’s role as a strategic aviation centre. Agreements already signed include a joint venture with Navoi to act as handling operator at the new airport, and memoranda with ExecuJet and Gulfstream to expand business aviation and maintenance services.
“The summit will once again provide a platform to discuss the future of cargo aviation, the driving forces of our industry, the daily challenges we face and the opportunities ahead,” Akhundov said, pointing to digitalisation and sustainability as priorities for discussion in the days ahead.
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Author: Anastasiya Simsek
The British International Freight Association welcomes the news that London Gatwick Airport’s £2.2 billion second runway project has secured government approval.
This is another important step in the planning process, but BIFA notes that the project could be delayed if the Gatwick scheme is subject to a judicial review.
Steve Parker, BIFA director general said: “The airport has become an increasingly important hub for air cargo and volumes are expected to climb sharply once the second runway is operational.
“Hopefully, the additional runway capacity will strengthen the airport’s position as a critical gateway for time-sensitive goods that move via aircraft.”
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Author: James Graham
On Thursday, the IMO will lead the celebration of World Maritime Day, and its emphasis this year is on environmental protection – one of the global body’s core roles.
The IMO’s selected theme for 2025 is “Our Ocean, Our Obligation, Our Opportunity.” In picking this theme, IMO aims to reflect the ocean’s triple role as a habitat for other species, a heat reservoir to offset warming, and a transport medium for human commerce. More than 80 percent of all trade moves by sea, so the ocean’s navigable waters play a key role in the global economy.
As an industry, shipping has environmental effects, and IMO’s regulations help to manage and mitigate them. The UN body emphasized that it now has a “growing portfolio of technical assistance initiatives” to help all of its 176 member states to implement those regulations – a major undertaking, as enforcement is uneven and depends wholly upon each nation’s jurisdiction.
IMO also wants to highlight other UN efforts to protect the ocean, beyond the realm of the shipping industry. The newly-concluded UN agreement on protecting biodiversity in areas beyond national jurisdiction (the High Seas Treaty) is a landmark for defending wild habitat in the global commons, and the UN is still working on a possible treaty on capping plastic production, a root cause of ocean plastic pollution.
IMO also emphasizes the opportunity to create a shipping industry where more people will want to work, including women, who frequently report certain challenges in seagoing roles. The UN agency isn’t alone in trying to make shipping a career of choice for more people.
“True sustainability also means caring for people. Seafarers are at the helm of this industry, and their wellbeing and safety must always come first. That’s why AMSA is unwavering in our commitment to uphold the Maritime Labour Convention and the Port State Control regime,” said Australian Maritime Safety Authority CEO Kaylene Dale in a statement.
The next theme is already set for 2026 – and for 2027. In recognition of the role that member states have to play in making international standards meaningful, IMO has decided to focus on practical implementation of the rules for the next two years. The theme for 2026-7 will be “From Policy to Practice: Powering Maritime Excellence” – focusing on member states’ ability put existing treaties into practice on the water, not just on the books.
“The theme transmits a clear message of our commitment to ensuring regulations are put into action and providing the necessary technical assistance for implementation to Member States,” said IMO Secretary General Arsenio Dominguez, who requested the two-year emphasis. “This ultimately strengthens the confidence that global rules agreed at IMO can lead to safer, more secure and environmentally sound shipping worldwide.”
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CoolCo, a pure play LNG Carrier, which has been publicly traded for just over three years, is in advanced discussions with its majority owner, Eastern Pacific Shipping, for a potential buyout of its outstanding shares. The move comes in response to the outlook for LNG shipping after CoolCo grew rapidly after being spun off from Golar LNG in 2022.
EPS worked with Golar in the formation of the dedicated LNG shipping company to simplify the corporate structure and create a pure play well-positioned to participate in the rapidly growing LNG market. Three years later, analysts expect an emerging oversupply of LNG as the United States and others have moved rapidly to increase production and exports. There has also been a rush to build vessels for the sector, and now the U.S. is looming over the business with a proposed requirement that a portion of LNG exports must be carried on U.S.-flagged vessels.
“Despite challenging market conditions, our commitment to CoolCo’s long-term development and, above all, to serving our charterers with the highest level of reliability and dedication remains unchanged. We believe our offer provides the best long-term alternative for CoolCo shareholders, and we hope to bring this proposed transaction to a close in the very near future,” said Cyril Ducau, CEO of Eastern Pacific Shipping.
The terms being discussed call for a cash offer of $9.65 per share for the 41 percent of the stock that EPS does not currently own. It represents a 26 percent premium to the closing price on September 22, 2025, and a 38 percent premium to the 90-day trading average. The Board of Directors of CoolCo has established an independent Special Committee, comprised solely of independent and disinterested directors, to review and negotiate the terms of the potential transaction.
CoolCo traces its origins to the founding of Gotaas-Larsen in 1946 and the company’s first LNG carrier ordered in 1970. Gotaas-Larsen became Golar in 2001 and later entered the FLNG sector as a developer of floating terminals, and today is the only independent provider of FLNG as a service. They separated the business in 2022 as part of a long-term plan that the companies had been pursuing for several years.
The LNG standalone company named CoolCo emerged, owning eight vessels, and acquired the ship management business from Golar. Today, the fleet consists of 13 LNG carriers owned by CoolCo as well as three additional managed vessels. It took delivery on two newbuilds in Q4 2024 and Q1 2025, while highlighting that its strategy includes ongoing assessment of growth opportunities through vessel acquisitions and potential consolidation in the fragmented LNG market. It draws on its relationship with EPS to strengthen its position with shipyards, financial institutions, and deal flow access.
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