News / Virgin cargo GSA deal with ECS raises eyebrows, but 'there's no conflict'

© Craig Russell |

Last week’s announcement that Virgin Atlantic (VS) had appointed ECS Group as its GSSA in continental Europe triggered concerns over a conflict of interest.  

However, ECS has outlined a plan to ensure independence. 

Virgin’s GSA deal had attracted a lot of interest following the news that its VP cargo sales, Steve Buckerfield, had gone on sabbatical and set up his own GSA, Azure Air Cargo. Rival agents were concerned that Azure might win the contract with its insider knowledge of Virgin. 

However, that concern was scotched when ECS Group’s 100% subsidiary, TCE, (Total Cargo Expertise), was appointed. But ECS also handles some sales in Europe for United Cargo, a direct competitor to Virgin’s 49% owner and partner, Delta. 

But one source close to the GSA sector said: “ECS represents UA. How can they do VS? Smells bad.” 

ECS Group told The Loadstar it had gone to great lengths to ensure the contracts were kept separate, adding: “While we have recently won business with Virgin Atlantic, it is our firm view that this will not have any conflict of interest with any of our existing principals. 

 “It is planned that the Virgin contract, particularly in the key countries, will sit in a separate, dedicated setup (TCE), either walled-off teams or separate entities entirely.  This was done at both the request of Virgin as well as to protect our principals’ interests.” 

ECS added that that the regionality of the contracts differed. 

“In regards to United specifically, our group is representing them under a full dedicated structure named Skylog. The contracts are in Scandinavia, France (for only a few cities) and Germany (for only provincial cities and a defined customer portfolio which corresponds to 20% of their local production; UA is managing 80%). 

“We believe taking these deliberate steps and carving out this new business will prevent the transmission of sensitive information or any conflict of interest.” 

The TCE contract for Virgin will begin this year in a phased approach. The first representation will cover exports from the Netherlands, Denmark and Italy, eventually expanding to cover 14 countries in Europe. 

Mark Faulkner, interim MD at Virgin Atlantic Cargo, commented: “We are thrilled to strengthen our partnership with ECS Group through TCE, and enhance our customer proposition in continental Europe.  

“Our innovative solution will streamline the transportation of freight across the continent, ensuring efficiency and reliability for our valued customers.  

“As a crucial cargo export market, we are eager to expand our customer relationships and provide unparalleled access to our transatlantic network and beyond.”