AIR CARGO BUSINESS MODEL REPORT 2022

Running head: AIR CARGO BUSINESS MODEL
Air Cargo Business Model
Name of the Student
Name of the University
Author Note

AIR CARGO BUSINESS MODEL
1
Introduction
Emirates Sky Cargo is one of the best air cargo services and it is mainly based in
Dubai, United Arab Emirates. From the data of 2019, it is reported that, Sky cargo of
Emirates Airlines is the second largest cargo airline service of the world in terms of total
freight tonne-kilometres flown. Along with this, the company holds the first position in terms
of being the largest air cargo service in terms of international freight tonne-kilometres flown.
The Emirates Sky Cargo is the air cargo service of Emirates group of airlines services. The
service was initially started in 1985 and initially the service was operated through the AI
Maktoum International Airport that is the primary division of this air cargo service.
Moreover, the Emirates airlines also operates the freighter aircraft as a part of their business
(Baldwin 2016). As a part of their business operation in the world in terms of cargo service
and passenger service in different countries of the world is basically based on their
perspective that mainly focuses on the Emirates’ commercial success. The main component
of the business of Emirates are associated with the lean work forces and the low- cost carrier
of the company. Apart from that, it is also true that the company follows a general and flat
organizational structure in order to maintain the low costs of the services provided by them
(Merkert and Alexander 2018).
In this, essay the business model of Emirates’ Sky Cargo and its role in the
international supply chain are discusses. Apart from that, the passengers’ networks of the
Emirates, business process of Emirates Sky Cargo, and the factors involved in the business
process of Emirates Sky Cargo are also described in a brief manner.
Role of International Air Cargo Mode in Supply Chain
Along With the development of technology in the world, the mode of supply chain of
the products are also changed as the air cargo business has captured a huge amount of market

AIR CARGO BUSINESS MODEL
2
place in the world of business. According to the study of Baxter (2019), it is reported that, the
air cargo plays a crucial role in the global business trade and it is reported that, air cargo
services are associated with the 35% of transportation of the products in world. Although, the
Heathrow Airport is not considered as a global trade hub, still most of the products of the
London area is transported through this airport. The air freight service of Germany is alone
responsible for the 30 percent of total transportation of the materials. While analysing the
global context of the air cargo services, it can be easily said that this industry is very dynamic
in nature and is also increasing in a rapid manner. Therefore it can be said that, due to the
growth of the air cargo services in a worldwide manner, the economy of the world also starts
to increase and the emerging middle class country’s growth also promote the increment of the
air cargo services of the world (Lim 2018). Along with this, the enhancement of the
ecommerce services in the middle income countries of the world also promote the growth of
the air cargo services of the world. While analysing the inter modal competition of the air
cargo services, it can be said that the intermodal competition of the air cargo is dependent on
the quality of services rather than the volume of the services provide by them (da Silva 2014).
Due to the enhancement of the air cargo services, the transportation of the products
become easier and for a company or business body, it is very important to deliver their
product in a less amount of time. The use of air cargo services in the world business, also
help the companies involved in the international business to deliver their product in a quick
manner. As a part of this, it is also reported that the use of air cargo services in the modal
business also make the air cargo business easier. It is quite evident that , every company
wants to deliver their product to various countries of the world and transportation time of
the products also encourages the business personnel to use air cargo services as the air cargo
service consume less time than any other transportation facility (Sales 2016).

AIR CARGO BUSINESS MODEL
3
Air Cargo Business Model
The air cargo services of Emirates named Sky Cargo mainly follows a combination
business model strategy in their business process. According to the study of (), it is reported
that the airlines companies involved in the air cargo services mainly follows a few business
strategies. Among them, Basic Service Freighter (BSF), Full Service Freighter Operator
(FSFO), Basic Service Combination Carrier (BSCC), Full Service Combination Carrier
(FSCC), and Separate Profit and Loss Full Service Combination Carrier (SFSCC) are mostly
used by the airlines companies. From the various studies, it is reported that, the cargo airlines
business groups generally takes decision based on the passenger business and it is quite
evident that the cargo facilities are the secondary operations of the airlines companies.
Therefore, the cargo service of the Emirates Airlines are also not all different from them
(Reis and Silva 2016). Combination services provided by the airlines companies generally
comprises of a basic range of services or products such as tracking and tracing of the goods
delivered through cargo services, custom clearance services which is mainly sold by the small
sales teams. Along with this, the airline cargo services also can work in a joint venture along
with other airline companies of the different countries of world. Although, the cargo service
provided by an airlines company is a completely different wings of the airline business still it
is based on the passenger aircraft services of the airlines companies (Sales 2016).
The Full service Combination Carrier (FSCC) Strategy mainly provide midrange
product differentiation along with the services used by the professional sales team. The
combination airlines in this category generally operated by the passenger service of the
airlines company and the cargo products are loaded in the belly of the passengers’ air craft
and the products are delivered to the destination by the passengers’ aircraft. Along with this,
it is also evident that, in case of specific cargo routes, ad-hoc chartered freighters may be
hired by the companies (Reis and Silva 2016).