Expanding Horizons: SkyTeam Cargo's Vision for Future Growth

Published: Monday, August 19, 2024

kyTeam Cargo stands out as a powerhouse in the aviation industry, providing unparalleled connectivity and efficiency in transporting goods by air across continents with its pioneering concept of bringing together in one group major air cargo carriers.

As the only truly global cargo alliance, SkyTeam Cargo brings together the strength and reach of its member airlines, which operate a combined fleet of over 3,500 aircraft, to deliver goods swiftly and seamlessly to 850 destinations worldwide. With a network that spans continents and connects markets far and wide, SkyTeam Cargo is committed to offering top-notch service and reliability.
The alliance includes prominent players such as Air France-KLM Cargo, Delta Cargo, Korean Air Cargo, and Saudia Cargo, among others. Whether you’re shipping high-value electronics or essential supplies, SkyTeam Cargo ensures your cargo reaches its destination with ease and precision.
John Engelaan, Vice President of SkyTeam Cargo, offers a deep dive into the inner workings of one of the globe’s largest airline alliances. He sheds light on how SkyTeam’s strategic partnerships, innovative approaches, and focus on customer experience positions the organization uniquely in a competitive market.
SkyTeam’s competitive advantages in the market
While the aviation industry is increasingly competitive, SkyTeam has managed to carve out a distinct niche for itself through its unique strengths and advantages.
On the passenger side, apart from its extensive global network of 20 member airlines, SkyTeam’s integrated services, such as coordinated flight schedules and shared facilities, provide a seamless travel experience for you, the traveler.
Engelaan said, “SkyTeam is unique because it’s the only global alliance that integrates both passenger and cargo services. This dual focus sets it apart from other alliances that only deal with passenger flights. It’s a significant advantage, though there’s still room for improvement.
“For instance, we can learn a lot from the efficiency of SkyTeam’s passenger operations and apply those lessons to the cargo side. We have a vast network across the alliance and we can leverage it more effectively for cargo.

“Improving this process and better utilizing our combined network will be crucial for enhancing cargo services. It’s about making sure that, just as passengers experience smooth connections, our cargo services are equally efficient and streamlined.”

Selecting New Member Airlines
Any airline alliance looking to expand its network and improve its services needs to carefully select new member airlines that share its values and goals. SkyTeam is no exception, and its rigorous selection process ensures that only the best airlines join its ranks.
“SkyTeam’s process for selecting new partners involves careful consideration. When an airline joins SkyTeam, it doesn’t automatically become part of SkyTeam Cargo. Currently, out of about 20 partners, only 10 are involved in SkyTeam Cargo,” explains Engelaan.
“We’re actively discussing with new members whether they should also join the cargo side. There’s an opportunity to explore beyond just passenger carriers; we’re considering the inclusion of freighter companies and other potential partners. This expansion could significantly enhance our cargo network and overall service.”

Differentiation is key to SkyTeam’s success.
“On the passenger business side, SkyTeam is currently focused on a few key areas such as seamless check-in and enhanced bag tracking, which are top priorities. They’re investing significant effort to roll out these processes in collaboration with other carriers and seamless check-in is already 95% complete.”
SkyTeam is striving to elevate these aspects to a high standard across all member airlines,” said Engelaan.
Engelaan further notes, “Our unique strengths lie in our ability to provide a seamless travel experience through our integrated services and comprehensive frequent flyer program benefits. This, combined with our commitment to delivering a seamless, integrated and more responsible customer experience, sets us apart from other alliances.
“By focusing on these strengths, SkyTeam can provide a unique value proposition to its customers, making it an attractive option for travelers.”

Sustainability and Environmental Responsibility
Sustainable practices are at the heart of SkyTeam’s operations, with a focus on reducing carbon emissions through modernized fleets and initiatives such as The Aviation Challenge, a pioneering friendly competition that aims to find new ways to reduce air travel’s impact.
Through the Challenge, SkyTeam is working together with 24 global airlines to reduce waste and promote eco-friendly practices across the alliance, ensuring a more sustainable future for air travel.
For example, KLM recently launched a project to replace traditional wooden pallets with recyclable carton pallets. These carton pallets are lighter—about 10 to 15 kilograms less—and more sustainable, as they don’t require burning like wood pallets. This change not only reduces waste but also cuts down on fuel consumption, demonstrating our commitment to sustainability in our operations,” Engelaan shares.
SkyTeam encourages its members to adopt and develop their own environmental practices while also aligning with broader corporate sustainability goals. It’s clear that sustainability is a key agenda item for the alliance, with each carrier contributing in its own way.

Upcoming partnerships for Expansion
On the horizon, SkyTeam has plans to forge new strategic partnerships with cargo airlines that share its vision and values. These partnerships will not only expand the alliance’s network reach but also offer you more travel options and increased flexibility.
“Currently, we’re in discussions with potential new partners for SkyTeam Cargo, but it’s too early to share any details. We’re eager to bring new members on board who can widen our offering for Cargo customers,” said Engelaan.
For SkyTeam Cargo, it’s crucial that all participating airlines adhere to consistent product standards and processes. SkyTeam Cargo offers a portfolio of branded products which ensures seamless product transfers between carriers and maintains the quality of service. Each airline must follow clear guidelines for product handling and sales to avoid inconsistencies.
“If new products are introduced, they must go through a defined process involving our cargo executive board and working groups to ensure smooth integration. This structured approach helps maintain the reliability and efficiency of our cargo operations across the alliance,” Engelaan noted.

Long-term Vision and Strategy
SkyTeams’ ambitions are centered around expanding network coverage and enhancing digital services, ultimately aiming to revolutionize the travel experience through innovative solutions and operational efficiency.
Innovation is at the heart of SkyTeam’s strategy, driving the development of cutting-edge solutions that simplify travel and enhance the overall passenger experience.
As Engelaan notes, “Our focus over the next 2 to 5 years is on enhancing our systems and processes to drive growth and innovation within SkyTeam Cargo. We plan to explore new platforms and technologies to streamline operations and improve efficiency. We’ll be mapping out our initiatives for 2025 and beyond, focusing on integrating new strategies and optimizing our network. Our goal is to attract more members by offering compelling benefits and ensuring we can deliver on our promises effectively.”
By prioritizing innovation, SkyTeam is well- positioned to address the complex challenges facing the aviation industry, ensuring that its member airlines remain competitive and appealing to travellers worldwide.

Pharma Shipments
SkyTeam Cargo requires its member airlines to adhere to strict certifications and quality measures. This approach guarantees that pharmaceutical products are managed consistently and safely, regardless of the carrier.
By standardizing procedures and product descriptions, SkyTeam Cargo aims to deliver reliable and high-quality service across its network.
“Our approach to handling pharma shipments is critical for ensuring quality and consistency. As part of SkyTeam Cargo, carriers must adhere to strict quality standards and certifications to handle sensitive pharmaceutical products effectively. It’s essential that our partners meet rigorous quality levels. This guarantees that whether a shipment is transferred from Carrier A to Carrier B, the quality remains consistent. Our goal is to offer reliable, high-quality cargo services by standardizing product descriptions and operational procedures across the alliance,” Engelaan concluded.