Implementing various tech platforms to facilitate cent per cent digitalisation of biz ops, introducing sustainable programs, investing in cold storage infra to transporting 600 million doses of COVID-19 vaccines during 2021-2022, Qatar Airways Cargo has remained at the forefront, says Guillaume Halleux, Chief Officer Cargo.
Ritika Arora Bhola
Being a Game Changer
We implemented WebCargo by Freightos to encourage speed-to-market activities and grow the API channel transactions by not only facilitating e-bookings, but also to align with IATA standards and provide host of other aspects involved in end-to-end cargo transaction. We have partnered with WiseTech Global to offer direct e-booking solution for freight forwarders. The carrier became the first one to join the IATA CO2NNECT platform, launching a new voluntary carbon offsetting program, a part of its WeQare sustainability program for air cargo shipments. We continued using our full freighter fleet with belly flights and passenger freighters and mini freighters to support global trade. We backed many governments with complimentary transportation of vital aid e.g. Green Channel for China, aid from China and Vietnam to France, and Qatar to India. We strengthened our presence across Central Eastern Europe with the appointment of a new GSSA for Bulgaria, Croatia, Czech Republic, Hungary, Romania, Serbia, Slovakia, and Slovenia. The carrier received IATA CEIV Live Animals certification becoming first in the Middle East to receive this certification. We signed a pact with Validaide in 2021 to provide customers with detailed capabilities and lane risk assessments on key routes at the click of a mouse. We will also have a new storage facility ready by 2022-end, considering the ongoing growth of cargo via the hub.
Transforming air cargo
From the preighter solution, Qatar Airways went from 60 to 180 daily cargo flights swiftly. With global reliance on China for production of PPE, we had set up a China Customer Service department. We witnessed growth during COVID-19: our market share increased. We are proud of our Golden Triangle strategy, which is our revenue management, commercial network planning and cargo teams adapting and working in cooperation to create a successful model. We have done the most flying during the ongoing pandemic, efficiently utilizing our belly-hold planes and freighters (except the 10 A380s) and aligning the networks that are beneficial for both. We also leased extra freighters from various providers based on customer needs to cater to the growing demand and support global trade.
Whatever we have achieved is due to seamless coordination, communication and collaboration with industry stakeholders and our global teams. During the peak of the pandemic in 2020-21, cargo contributed 64 per cent to the airline’s revenue, while in 2021-22, we made a contribution of 43 per cent, doubling up our contribution from pre-Covid times.
Major industrial changes
The air cargo system is fragmented and there are several stakeholders involved in the supply chain, so digitalisation is the perfect investment to improve collaboration, leading to cost-efficiency and cargo service. Traditional methods gave rise to issues such as lack of integration affecting costs and efficiency, reliance on paper-based processes, inability to predict real time demand and under-utilization of capacity, lack of omni-channel platforms. Being part of this industry for long, I am now seeing the transformation that air cargo carriers are undergoing, especially in digitalisation of air cargo. Another transformation taking place across the industry is the focus on sustainability. There is a lot of pressure from customers, employees, partners, investors, stakeholders on airlines to share their sustainability initiatives. We are seeing carriers ramp up their focus in this area, however, there is still a long way to go. Nonetheless, it is commendable that efforts and investments are being put forth in this area.
Projects in pipeline
- We have been working on our Quality Management System and obtained industry recognized certifications such IATA CEIV Pharma and Live and pursuing the IATA CEIV Fresh certification.
- We are investing in advanced temperature monitoring systems to enhance visibility and control of temperature regimes across our facilities.
- Pharma Quality Agreements in line with GDP are being rolled out to ensure excellent customer service.
- To ensure booking and data compliance in pharma transportation, booking screens are being implemented globally to reduce manual tasks and improve accuracy.
Plans for next five years
Over the next five years, we see ourselves as a leader in the fields of digitization and sustainability. Proactive communication, Ease of Doing Business, transparency of information, accessibility and innovative solutions is what our customers expect. The announcement of adding new Boeing 777-8 freighters, with innovative features, is part of our plans to achieve sustainability and profitability. It will help us increase our capacity and add new destinations and give us an edge on the charter business front. We are also investing in a brand new Cargo Terminal 2 with an additional capacity of 3.4 million tonne. This cargo facility will be a safe, smart, and green one relying on technology and automation for material handling and offer faster storage and retrieval and cargo processing. With this, we will be able to meet growing demand for transit cargo. This building will be built on Leadership in Energy and Environmental Design (LEED) rating framework, the widely used green building rating system in the world. In line with our commitment to safety and security of cargo and crew, we will be replacing our fleet of 10,000 ULDs over the next five years with Safran Cabin’s Fire-Resistant Containers.
Future projections
Digitalisation and sustainability are the future of the industry. As the air cargo carriers continue to invest in these areas, air freight will keep playing a significant role in maintaining the world trade and ensuring distribution of vaccines globally, while also safeguarding safety of the environment. e-commerce and air freight as an omnichannel are some of the trends that are reshaping the future of air cargo industry.
