Source: ASA
- ASA World calls for shared responsibility and constructive dialogue across the aviation value chain
The Aviation Services Association (ASA) is highlighting the growing financial pressures facing ground handling organizations (GHOs) as rising global fuel costs reverberate across the aviation sector.
Airlines have responded to higher fuel prices by introducing passenger surcharges, while simultaneously pressing suppliers — including GHOs — to absorb cost reductions. This places GHOs in an increasingly difficult position: facing the same fuel-driven cost increases as airlines, yet expected to shoulder additional financial burden with fewer means to offset it.
Labor accounts for 50 to 65 percent of GHO operating expenditure, and operators are firmly resisting pressure to reduce workforce levels as a cost-mitigation measure. The COVID-19 pandemic demonstrated the severe and lasting consequences of staffing cuts — operational disruptions during the recovery phase were directly linked to workforce reductions, and many experienced operators never returned to the industry. Ground handlers are committed to avoiding a repeat of those failures.
Compounding these pressures, GHOs are currently operating under reduced and unpredictable flight schedules, straining passenger-facing staff, financial performance, and cash flow. These conditions underscore the urgency of finding balanced, sustainable solutions that are shared equitably across the aviation value chain.
ASA provides transparent market data and analysis to support its members in navigating these challenges. Each operator makes its own independent commercial decisions. ASA does not set, recommend, or coordinate pricing actions, and remains fully committed to compliance with competition law.
ASA calls on airlines and all aviation stakeholders to recognize the shared nature of current pressures and to engage in constructive dialogue that ensures the long-term resilience, safety, and sustainability of ground operations worldwide.