SkyTeam Cargo
SkyTeam Cargo is the largest air cargo alliance in the world. It is also the most extensive and comprehensive air cargo alliance transporting cargo to different countries in the world. Over the years, the SkyTeam cargo has grown to put in a place an alliance that transports cargo to different destinations in the world. Through building alliance, SkyTeam cargo has brought together the experience and expertise of renowned carriers to provide the most innovative and integrative air freight services in the world. This can be described as a success story considering the different aspects of its operation. Holding an alliance together in air cargo business is a challenging task that needs careful planning and efficient management. In order to understand the success of the alliance, there is need to understand the different aspects of its operations. One of the important factors to understand about the alliance is the management factor. This would the reveal how the alliance has been working to maintain the strategic alliances.
In this paper we are going to reveal the operations of SkyTeam Cargo. The paper will look at how the strategic alliance has been formed over the year to become the leading airfreight alliance in the world. The paper will also look at the management aspect to understand the secret behind the success where others have tried and failed.
SkyTeam cargo is the foremost air cargo alliance in the world. The alliance was founded in 2000 and since then it has grown over the years to become a leading air cargo carrier in the world. In the initial formation, the alliance brought together four carriers who were already partners in the SkyTeam passenger airline alliance. The four carriers joined forces in the cargo market opening the door for the growth of the alliance (SkyTeam Cargo, 2000). Therefore SkyTeam cargo was the brain child of Air France Cargo, Delta Air Logistics, Aero México Cargo, and Korean Air Cargo. These four joined forces to form a larger carrier alliance creating advantage of networking. (SkyTeam Cargo, 2009)
The initial experience of the alliance showed that bringing together more players was beneficial for networking. Therefore in April 2001 CSA cargo joined the alliance and in August 2001, Alitalia Cargo joined the alliance (SkyTeam Cargo, 2001). In November the same year, US Cargo Sales Joint Venture was launched by Air France Cargo, Delta Air Logistics, and Korean Airline in a bid to offer customers increased benefits of combined sales force. This also offered centralized reservation, service center, comprehensive route network, and in addition a common product line for all US exports shipments. (SkyTeam Cargo, 2002)
In October 2002, SkyTeam cargo also introduced new product and services in a new initiative that was based on principles of equation, cohesion, variation, and dimension. This new initiative was designed to extend the global range of the alliance and also to provide customer friendly product solutions to their clients. It is through such initiatives that the alliance has continued to provide successful packages to their clients.
In 2003, the SkyTeam re-launched the skyteamcargo.com. This coincided with the increased growth of e-commerce which was now becoming a mainstay in business operation for different companies. This initiative was aimed at providing various services including; (SkyTeam Cargo, 2004)
In 2004 KLM cargo, which is a leading cargo carrier in the world was admitted to the SkytEam cargo alliance. This revealed that the alliance was not just admitting anyone in its fold but it was admitting leading carriers with a wider world reach in order to expand its operation. In May 2005, SkyTeam cargo continued with its brand innovation strategy in order to keep up with the changes in the market. It developed cargo variation Pharma which was one of the most ideal solutions for shipping of the pharmaceutical and medical products. With expansion of its product handling capacity, the company also needed to expand its world reach by creating more alliance. It should be understood that there is no single airline that can cover the whole world and the growth strategy for any company depends on how it can expand its operation through making connection with other airlines. This has been the main secret behind the growth of this alliance. By September 2005, SkyTeam had grown to more than eight members through addition of the Norwest Airlines Cargo which is the fourth larges airline in the world (Logistics Management, 2005).
In this paper we are going to reveal the operations of SkyTeam Cargo. The paper will look at how the strategic alliance has been formed over the year to become the leading airfreight alliance in the world. The paper will also look at the management aspect to understand the secret behind the success where others have tried and failed.
SkyTeam Alliance
SkyTeam cargo is the foremost air cargo alliance in the world. The alliance was founded in 2000 and since then it has grown over the years to become a leading air cargo carrier in the world. In the initial formation, the alliance brought together four carriers who were already partners in the SkyTeam passenger airline alliance. The four carriers joined forces in the cargo market opening the door for the growth of the alliance (SkyTeam Cargo, 2000). Therefore SkyTeam cargo was the brain child of Air France Cargo, Delta Air Logistics, Aero México Cargo, and Korean Air Cargo. These four joined forces to form a larger carrier alliance creating advantage of networking. (SkyTeam Cargo, 2009)
The initial experience of the alliance showed that bringing together more players was beneficial for networking. Therefore in April 2001 CSA cargo joined the alliance and in August 2001, Alitalia Cargo joined the alliance (SkyTeam Cargo, 2001). In November the same year, US Cargo Sales Joint Venture was launched by Air France Cargo, Delta Air Logistics, and Korean Airline in a bid to offer customers increased benefits of combined sales force. This also offered centralized reservation, service center, comprehensive route network, and in addition a common product line for all US exports shipments. (SkyTeam Cargo, 2002)
In October 2002, SkyTeam cargo also introduced new product and services in a new initiative that was based on principles of equation, cohesion, variation, and dimension. This new initiative was designed to extend the global range of the alliance and also to provide customer friendly product solutions to their clients. It is through such initiatives that the alliance has continued to provide successful packages to their clients.
In 2003, the SkyTeam re-launched the skyteamcargo.com. This coincided with the increased growth of e-commerce which was now becoming a mainstay in business operation for different companies. This initiative was aimed at providing various services including; (SkyTeam Cargo, 2004)
- providing enhanced tracking and retrieving of carrier schedule
- A dynamic products section
- Easier access to important functions
- Dynamic product section proving detailed information of the services provided by the alliance
- New design and layout that reflected the SkyTeam cargo brand
- Improved information about SkyTeam cargo
In 2004 KLM cargo, which is a leading cargo carrier in the world was admitted to the SkytEam cargo alliance. This revealed that the alliance was not just admitting anyone in its fold but it was admitting leading carriers with a wider world reach in order to expand its operation. In May 2005, SkyTeam cargo continued with its brand innovation strategy in order to keep up with the changes in the market. It developed cargo variation Pharma which was one of the most ideal solutions for shipping of the pharmaceutical and medical products. With expansion of its product handling capacity, the company also needed to expand its world reach by creating more alliance. It should be understood that there is no single airline that can cover the whole world and the growth strategy for any company depends on how it can expand its operation through making connection with other airlines. This has been the main secret behind the growth of this alliance. By September 2005, SkyTeam had grown to more than eight members through addition of the Norwest Airlines Cargo which is the fourth larges airline in the world (Logistics Management, 2005).
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