Lufthansa Cargo Alliance: Advantages, Challenges, and Risks

This document discusses the advantages, challenges, and risks of the Lufthansa Cargo Alliance. It explores the tailored logistics solutions offered by Lufthansa Cargo and the benefits of operating dedicated cargo planes. The document also examines the impact of the alliance on competition, airfare, and customer choices. Additionally, it delves into how Qantas Freight utilizes alliances for operational synergies and highlights the operational challenges faced by Qantas. The document further discusses team integration concerns and aircraft maintenance issues. References are included.

AIR CARGO ALLIANCE PART

Table of Contents
Question 1........................................................................................................................................3
Question 2........................................................................................................................................3
Question 3........................................................................................................................................3
Question 4........................................................................................................................................4
Question 5........................................................................................................................................4
Question 6........................................................................................................................................5
Question 7........................................................................................................................................5
References........................................................................................................................................6

QUESTION 1
With the Lufthansa, customers can have the accessibility of services anytime and
anywhere and can make bookings at a glance while getting an optimal overview regarding the
states of shipments. (Baxter, Srisaeng & Wild, 2018). Lufthansa Cargo offers tailored logistics
solutions to consumers in more than 100 countries, with the essential aspects of delivering the
shipment in a fast way.
QUESTION 2
The Lufthansa Alliance offers advantages, in the form of improvised connectivity for the
customers travelling from one place to another. It possesses the perks of operating dedicated
cargo planes Alliance selection can come up with various benefits to customers, such as better
accessibility to connecting flights, higher choices of routes, the capability to earn and redeem the
ongoing flyer points throughout all networks of participated airlines (Baxter, 2018). It provides
an array of benefits that are comprising priority boarding as well as easy flight bookings. It
provides the customer with the perks of easy accessibility to airport lounges, most effortless
transfers and the best of privileges and rewards. In addition, it offers seamless services through
global support, convenience value, fast-tracking and better security. It provides luxurious and
high-class services to premium customers, and provide services such as amenity-laden private
lounges etc.

QUESTION 3
On the other hand, Lufthansa alliances have the possibility to make a reduction in the
airline costs wherein competitive markets lead to less airfare for customers. It has been believed
that the alliance leads to a decrease in competition on these routes, which comes with the risk of
negative results for customer in terms of higher airfares and reduced choices. Challenges and
risks of alliance can be competition decrease, thereby resultant of higher fares and low-quality
services. However, alliances carry different risks and are required to be closely scrutinised to
make sure that it caters benefits that offset any negative impacts that are resultant from decrease
competition. The Lufthansa alliance charges higher rates and is also subjected to Gulf
competition.
QUESTION 4
The Qantas airlines work together with alliances to offer operational synergies to keep on
cutting costs. It is held that Qantas Freight produces synergies and reinforces revenue. Operating
synergies are considered as those synergies that enable organizations to higher their operating
incomes and growth simultaneously. Aircraft/system integration is used in Qantas that is the
aspect of making sure that all the aircraft system are operating in a correct individual manner and
together as installed on the aircraft (Gillen, Jacquillat & Odoni, 2016). This offers the
mechanism to reflect the requirements of intersystem considered as a group, which have been
satisfied. In addition, it offers an opportunity to explore and reduce undesired, unintended
functions.

QUESTION 5
In context with operations of Qantas Freight, the considerations and issues can come in
the form of partnering and making alliances; it is significant to meet the gaps of organizations or
the lacks that can result in corporate hindrance by finding a right partner to fulfil the same gaps.
Another operation challenge can be the structure of the organization, in which there should be an
optimal business structure and human resources (De Florio, 2016). Expected service delivery
and customer care are core operational issues present at Qantas, which are engaged with
operational glitches if they are not sorted appropriately timely. It can be held that Qantas has
been facing technical difficulties at operations which generally results in delays.
QUESTION 6
In terms of team integration concerns at Qantas Freight, the teams encounter namely;
poor communication, inability to resolve conflicts, non-effective leadership, lack of participation,
ineffective decision making and so on. Indeed, the employees of the airline are its lifeblood, that
is the reason by weak team integration, and poor labour relations can damage an airline firm both
financially and operationally (Bowers, Oser, Salas, & Cannon-Bowers, 2018). The concern takes
in place of applying the best leadership, actions, support and motivation. It is true that handling
the air force employees is not an easy task; it demands higher optimal skills, power and influence
to take the best of team integration. Qantas has recognized human-induced climate change as an
important issue for the aviation industry.

QUESTION 7
The issues and concerns related to aircraft maintenance of Qantas Freight can be
contamination to air conditioning heat exchangers, as the air conditioning heat exchangers are
the vital aspect of the equipment that impacts cabin temperature (Qantas Frieght, 2019). Another
concern is inclusive of use of technical pubs, alertness and safety culture, plus replacement of
parts is also an important maintenance and costs issue (Baxter, 2018). Qantas faced the concern
of missing support clips that are employed to keep the aircraft pressurised, and for this aspect,
they conducted auditing and worked closely with engineers to solve it. Issues also include the
outsourcing of maintenance work overseas at Qantas.

REFERENCES
Baxter, G. (2018). The Case of Qantas Freight - CTU Open Journal Systems. Retrieved from <
https://ojs.cvut.cz/ojs/index.php/mad/article/download/5038/4839>.
Baxter, G. (2018). The Role of Freighter Aircraft in A Full-Service Network Airline Air Freight
Services: The Case of Qantas Freight. Retrieved from <
https://ojs.cvut.cz/ojs/index.php/mad/article/view/5038>.
Baxter, G., Srisaeng, P., & Wild, G. (2018). The role of freighter aircraft in a full-service
network airline air freight services: The case of Qantas Freight. MAD-Magazine of
Aviation Development, 6(4), 28-51.
Bowers, C. A., Oser, R. L., Salas, E., & Cannon-Bowers, J. A. (2018). 12 Team Performance in
Automated Systems. Automation and human performance: Theory and applications,
1(1), 145.
De Florio, F. (2016). Airworthiness: An introduction to aircraft certification and operations.
Butterworth-Heinemann
Gillen, D., Jacquillat, A., & Odoni, A. R. (2016). Airport demand management: The operations
research and economics perspectives and potential synergies. Transportation Research
Part A: Policy and Practice, 94(1), 495-513.
Qantas Frieght, (2019). Our freight network | Qantas Freight. Retrieved from
<https://freight.qantas.com/freight-planning/route-map.html >.