SkyTeam Cargo: Empowering businesses in an interconnected world

Published: Wednesday, August 16, 2023

“Collaboration and cooperation are key to the alliance, but there is also healthy competition among the members. This balance, although accompanied by limitations, strengthens their network and makes SkyTeam Cargo stand out in the industry.”

Embracing the vast horizon of global air cargo transportation, a remarkable alliance emerged as an unrivaled force in the industry. Founded in 2000, SkyTeam Cargo proudly claims its position as the sole cargo airline alliance in the world, seamlessly bridging the gap between airfreight carriers in more than 150 countries worldwide.
SkyTeam Cargo has pioneered a new paradigm, revolutionizing the way goods traverse the world since its inception. The alliance’s foundation was laid upon the collaborative efforts of four industry-leading airlines: Aeromexico Cargo, Air France Cargo, Delta Cargo, and Korean Air Cargo.
Since then, their pioneering spirit has inspired the addition of other members and SkyTeam Cargo now includes Aerolineas Argentinas Cargo, Aeromexico Cargo, Air France-KLM Cargo, China Cargo Airlines, Czech Airlines Cargo, Delta Cargo, ITA Airways Cargo, Korean Air Cargo, and Saudia Cargo. Aeroflot Cargo (temporarily suspended). Together, they forge an unbreakable bond, propelling the alliance to new heights and redefining the standards of excellence in cargo transportation.
At the heart of SkyTeam Cargo lies a network of extraordinary connections, spanning the globe with unmatched reach. With unwavering dedication and meticulous planning, the alliance seamlessly integrates its operations across diverse geographies and cultures, fostering a harmonious collaboration that transcends borders. This intricate web of connectivity empowers businesses, large and small, to explore untapped markets, expand their presence, and establish a global footprint.
The alliance’s fleet, comprising over 2,709 aircraft, including 45 full freighters, is a testament to its unwavering commitment to excellence. From freighters purpose-built for cargo to meticulously configured passenger planes, SkyTeam Cargo boasts an array of capabilities tailored to meet the unique demands of its customers.
The alliance’s dedication to providing a comprehensive suite of services is evident in its offerings, encompassing door-to-door cargo transportation, dedicated freighter flights, specialized handling services, meticulous cargo tracking and tracing, and comprehensive cargo insurance.
With each service meticulously designed and executed, SkyTeam Cargo ensures the seamless movement of goods from origin to destination, empowering businesses to thrive in an interconnected world.
In the competitive cargo transportation sector, SkyTeam Cargo is a leader in innovation. Air Cargo Update reveals the complexities of its success and SkyTeam Cargo’s crucial role in influencing the future of freight transportation by delving into its bold strategies, collaborative culture, and steadfast commitment.

Global Coverage
What sets SkyTeam Cargo apart from other groups in the industry is its unique approach as a collective force representing 11 cargo airline members. Unlike traditional service providers, SkyTeam Cargo does not directly sell cargo capacity or own aircraft.
Instead, it acts as a representative of its member airlines, focusing on promoting and advertising their services and providing a platform for customer engagement. This collaborative model fosters a strong network and contributes to the success of the alliance. Collaboration and cooperation are key to the alliance, but there is also healthy competition among the members. This balance, although accompanied by limitations, strengthens their network, and makes the SkyTeam Cargo Alliance stand out in the industry.
One of the major strengths of SkyTeam Cargo is the global coverage offered by members from various regions around the world that provides extensive reach and connectivity. Their distinction is the only cargo alliance among the three major alliances: Star Alliance, One World, and SkyTeam. In addition, SkyTeam Cargo has offered a portfolio of branded products for more than 20 years. Based around four key pillars and designed to simplify international shipping of all types of cargo, the branded products are offered consistently across all SkyTeam Cargo members.

Optimizing Network and Enhancing Customer Experience
The SkyTeam Cargo Alliance is focused on optimizing its network and considering the value potential new candidates can bring to their existing network and customers. To strategically enhance their reach, SkyTeam Cargo welcomed Saudia Cargo as a member in 2019, addressing a gap in the Middle East and parts of Africa. The alliance carefully evaluates potential candidates to ensure unique capabilities. Opportunities to fill gaps in regions such as other parts of Africa, Australia, New Zealand, inter-South America, and the Caribbean are also being explored.
With a current network covering approximately 800 stations worldwide, the alliance proudly highlights, “Nearly 20% of the world’s air cargo volume is transported by our member airlines, showcasing a significant contribution and market presence in the global air cargo industry.”
When discussing recent initiatives or innovations to enhance the customer experience, it is revealed that the alliance’s recent focus has been on digitalization and improving its IT infrastructure. One of their ongoing initiatives is to digitally connect their networks, making it easier for customers to book double itineraries, a concept common in the passenger business.
The importance of optimizing international traffic and creating seamless connections is recognized, particularly in relation to feeding and de-feeding of cargo. The alliance exemplifies how the strength of one member airline in a particular region presents a unique opportunity for other carriers. The process, however, is currently mostly manual. Nevertheless, significant investments in technology are being made, along with efforts to establish industry standards. Active collaboration with industry organizations such as IATA is emphasized, aiming to modernize cargo distribution and establish standard API technology.
Standardized formats and message types in API communication are seen as crucial, as they encourage investment and connectivity between airlines and freight forwarders. The alliance acknowledges that the cargo industry still lags behind the passenger side in terms of technological advancement due to the complexity of the logistics chain involving multiple parties. However, the alliance remains committed to driving industry-wide adoption of standardized practices and advancing the digital capabilities of the cargo sector.

Sustainability as a Key Focus
Sustainability is a significant focus for SkyTeam Cargo, acknowledging the industry’s environmental impact in the fight against climate change. Their member airlines are investing in more fuel-efficient aircraft to reduce CO2 emissions.
To help make aviation more sustainable, SkyTeam launched the Sustainable Flight Challenge, an industry-first initiative encouraging member airlines to compete to find new innovations that make a difference in categories such as fuel-efficiency and ground handling. Collaboration with organizations like Freight Force is facilitating the promotion of sustainable fuel in the industry. The importance of shared responsibility and fair distribution of costs is emphasized as crucial in driving sustainability initiatives across the industry.

Cultural Integration and Customer-Centric Approach
While there is no single common culture among the diverse partners from different regions, SkyTeam Cargo prioritizes professionalism and a customer-centric approach. Membership consideration includes requirements such as being a member of Cargo IQ and adhering to quality measurements. Efforts are made to create a common language and focus on shared priorities. Alignment is achieved through discussions and setting the right priorities to assist members. For instance, in areas like sustainability, support is provided to encourage initiatives and ensure a common focus and goals.

SkyTeam Cargo’s strategy is designed to align all members in the same direction, with an emphasis on customer satisfaction. The objective is to have a shared commitment to providing a satisfying customer experience. Mission statements and themes reflect the goals, such as ‘global shipping made easy,’ highlighting the dedication to simplifying global logistics. While partners bring their own cultural nuances, the shared objective and customer-centric approach enable effective collaboration.
Regarding future ventures and new members, SkyTeam Cargo is in discussions with potential new members and aims to expand its membership. Launching partnerships during recent events was the intention, but complexities need to be addressed. Valuing the diversity of members, it allows for learning from each other and benefiting from different perspectives. Interactions between members within the alliance are valuable for sharing knowledge and assisting each other with specific customs rulings or challenges.
Monitoring the quality of members compared to industry standards is important, although customer feedback primarily lies with individual members. Measures such as cargo IQ are utilized to assess the quality levels. Statistics consistently show that SkyTeam Cargo members maintain higher quality levels compared to non-SkyTeam Cargo members.
Looking ahead to the next five to 10 years, SkyTeam Cargo envisions several key factors shaping its future. One important lesson learned from the COVID-19 pandemic is the vital role of air cargo. The world heavily relied on air cargo for essential supplies, including vaccines and protective equipment, leading to greater recognition and importance for the air cargo industry.
In terms of network planning, a shift is being witnessed from traditional passenger-focused networks to a more balanced approach that considers cargo capacity as well. This trend reflects the growing significance of cargo operations.
In terms of the long-term vision for the alliance, the aim is to continue growing membership. While size alone is not the primary focus, there is a keenness to expand the alliance with both passenger-cargo carriers and pure cargo carriers. By welcoming new members, SkyTeam Cargo seeks to bring in fresh energy, diverse mindsets, and different perspectives, contributing to a dynamic alliance. The goal is to create a better mix that represents the broader cargo industry and encourages collaboration and learning among members.