By creating a Global Cargo Joint Business, the three cargo airlines are bundling their forces aimed at enhancing existing service levels for customers and partners in the global air cargo market. The companies praise their intend as a “significant milestone” (QR Cargo), a ‘testament’ (IAG Cargo) and a “defining moment” (MASkargo). Now, the plans still have to be implemented.
It is a strategic cooperation, so short of a merger. Hence, a threshold that lies below the bar for possible interference of competition authorities. In their identical press releases, the three freight carriers name as their primary goal to benefit customers significantly by combining their expertise, infrastructural abilities and assets. Their announcements further read: “A streamlined product offering, enhanced connectivity, faster transit times, and new routing opportunities across their combined extensive networks will deliver greater value and service flexibility to customers worldwide. In parallel, the parties are jointly working at developing industry-leading harmonized safety and security standards for their customers.”
Acting according to the Olympic motto: faster, higher, stronger.
By pooling their resources, QR Cargo, IAG Cargo and MASkargo plan to build a connected and agile cargo network that will address the evolving needs of global trade and logistics, the trio promises.
Mark Drusch, Chief Officer Cargo at Qatar Airways Cargo commented: “This agreement will bring together three strong players to offer unparalleled service and global connectivity, reinforcing our commitment to customer satisfaction and operational excellence.”
David Shepherd, Chief Executive Officer at IAG Cargo stated: “This joint business not only unlocks choice and opportunities for our customers but also enhances connectivity for the businesses and industries they serve, further strengthening the role air cargo plays in facilitating global trade.”
Mark Jason Thomas, Chief Executive Officer at MASkargo added to this: “By leveraging our combined strengths and expertise, we will provide enhanced service offerings, expanded global reach, and cutting-edge solutions that address the evolving needs of the global market, ensuring greater efficiency and connectivity for our partners and customers.”
Additional allies could jump in
At first glance, the three airlines’ announcement to kick off a Global Cargo Joint Business sounds like a bombshell. However, this is probably only the case for those who were completely surprised by the plans. It has been apparent for some time that the three players are intensifying their cooperation step by step. Only the timing and the number of participants was open until now.
The trio could also have started as a quartet or quintet, with the South American LATAM Cargo as an additional member or RwandAir Cargo from East Africa. QR Cargo is one of the major shareholders of both parent companies.
Starting point is still open
By historical standards and compared to SkyTeam Cargo and the former WOW Cargo alliance with LH, JAL, SQ and SAS, the new cargo union is likely to be the largest cargo club ever.
The carriers leave open, when exactly their collaboration will practically begin. Although the time issue might be a decisive factor for shippers and forwarders for planning their businesses concerning routing availabilities, connectivity options and capacity management issues. There does not appear to be a central unit for coordinating such issues. A reference to these points does not exist on the carriers’ websites. Hence, many questions still need to be answered.
