ASA World releases report on aviation services industry: Addressing the Race to the Bottom is key for the Whole Civil Aviation Industry

ASA WORLD, the association representing aviation service providers, just released a state of the industry report in collaboration with Steer, a renowned consultancy. This report marks a significant step forward for the sector, offering an objective analysis of its challenges and opportunities while proposing actionable solutions to build a more resilient and sustainable future.

In 2023, the aviation services industry produced a global revenue of USUSD 64bn (equivalent to 7% of the global civil aviation value chain) and provided 1.1m direct jobs (-12% compared to pre-pandemic levels). It generated USUSD 38bn of gross value added (GVA), whilst its total contribution including indirect and induced GVA amounted to nearly USUSD 100bn.

Considering important regional differences, the report highlights some worrying trends that underlie the business of ground handling:

• Customers’ intense focus on pricing, as they have been trimming their own costs over the last decade.
• The highly competitive nature of the sector, characterized by low barriers to entry and high labor intensity, leading to competition centered on costs rather than innovation.
• Challenges in recruitment and retention, evidenced by very high turnover rates, prompting the introduction of sectoral agreements in some (albeit rare) jurisdictions.
• The absence of widely recognized and implemented industry standards affecting training and consequently impacting safety records.
• Handlers’ limited capacity to invest in new capital assets, hindering the industry’s green transition.

Fabio Gamba, Director General of ASA World, comments: “This report highlights the vital role our sector plays in a safe and efficient aviation – you simply don’t fly without our services. Yet, it also exposes a troubling imbalance between our importance and our revenue. For too long, a race to the bottom has defined our business, with revenues declining by 4% annually over the past decade. This severely limits investment in innovation, training, and job retention, as employees face declining wages while productivity demand has increased by 17% in parallel. Tackling these hurdles for the common good of air transport requires a change in the mindset. We are ready to do our part.”

The report validates the industry’s long-standing messages and provides hints on how to address its challenges. It outlines actionable pathways to improve quality, safety, and sustainability, while supporting the ecological transition and attracting future talent. ASA World calls on all stakeholders to recognize the strategic importance of aviation services and align efforts to shape a resilient, innovative, and sustainable future for this essential sector.

About ASA World :
The Aviation Services Association (ASA World) is the only recognized global not-for-profit trade association representing over 80 ground handling, cargo, and other aviation service providers worldwide. With a 50-year legacy, formerly known as IAHA, ASA World fosters dialogue, collaboration, and excellence in the aviation services industry. Through advocacy, networking events, and forums, ASA World addresses industry challenges, shares best practice and champions fair competition, sustainable growth and operational efficiency.
Website: www.asaworld.aero

Press release ASA Workd