Air Cargo Management: Sky Team Cargo Analysis Report - Business

This report provides an analysis of air cargo management, focusing on the Sky Team Cargo alliance. It begins with an overview of the alliance, including its latest news and member airlines. The report then examines how the alliance impacts operations, including the use of technology and the optimization of revenues. It discusses the advantages and disadvantages of being a member of the Sky Team, such as improved customer service, revenue generation, and reduced competition. The report also highlights the potential drawbacks, such as limited decision-making power and the need to adjust routes and frequencies. The analysis is supported by references to relevant academic literature, providing a comprehensive understanding of the topic. This report aims to offer valuable insights into the complexities and benefits of airline alliances in the air cargo industry.

Running head: AIR CARGO MANAGEMENT
AIR CARGO MANAGEMENT
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The Air Cargo Alliance chosen for this paper is: Sky Team Cargo
1. Latest news on Sky Team Cargo:
 According to Istanbul press on December 6th 2019, the Sky Team has recently
launched seventh branded lounge which has involved 790 members and numerous
worldwide lounges within itself.
 The sky team has offered a 15 % discount on the fares around the world.
 The present chairperson of the company is Walter Cho, who was formerly the
chairman and CEO of the Korean Airlines as well.
 Saudi Cargo is the latest member of the Sky team cargo, who is the 12th effective
partner for the alliance team (Brueckner & Singer, 2019).
 The Sky Team Partner consists of: AeroMexico Cargo
Air France Cargo
Alitalia Cargo
CSA Cargo
Delta Air Logistics
KLM Cargo
Korean Air Cargo
Northwest Airlines Cargo
 The main purpose was to deliver a seamless services and delivery throughout the
globe.

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2. How operations can be impacted with the use of the alliances:
The main purpose of the alliance is to deliver a seamless delivery across the
globe, along with an effective supply chain management system. With the usage of the
appropriate technology the operation can be improved.
The repetitive jobs in the cargo industry can be well tended with the usage of the
machine learning. The revenues can be optimized with the proper automatic system of
processing and proper maintenance delivered by the cargo alliances (Guzman & Hæhre,
2018).
The operations are smooth efficient and faster in comparison to the other
processes.
3. Pros and cons of having membership in the alliance:
The Pros of joining hands with the Sky Team Alliance are,
a. Improved customer services and satisfaction
b. Better generation of revenues from the system.
c. The resources can be utilized properly with the help of the Alliance.
d. There are numerous opportunities that knocks the door while one is allied to the Sky
team.
e. The competition reduces. This is because the airlines under the same alliances
travelling in the same route will have very less differences in the price of the ticket.
This is not customer centric, it is more business centric.
The cons of being in the alliances are:

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a. The decisions are mainly taken by the alliance company. The individuals have very
little part to take in it.
b. The routes and frequencies may have to be changed as same or comparable flight has
to go through the same route.
c. Co-operation is the biggest benefit as well s discredit of the alliance. Outside the
alliances, the flights on the same route have to compete for the passengers and timing,
where as in the alliance they have to adjust.
d. The lounges get more crowded by the elite of the partners (Kleymann & Seristö,
2017).
Thus it can be concluded that the airline alliances are beneficial in many ways but they
often have to make decisions which can hamper the revenue or pricing of a particular airline.

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References:
Brueckner, J. K., & Singer, E. (2019). Pricing by international airline alliances: A retrospective
study. Economics of Transportation, 20, 100139.
Guzman, E. R. P., & Hæhre, D. A. (2018). How have airlines used alliances to internationalise
their expansion?: A case study on Norwegian Airlines and Scandinavian Airlines’
behaviour (Master's thesis, Handelshøyskolen BI).
Kleymann, B., & Seristö, H. (2017). Managing strategic airline alliances. Routledge.