Ground Handling Organizations Face Mounting Pressure as Fuel Costs Rise Across the Aviation Sector
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 [...]