A Strategic Analysis of Cargolux Airlines International Position in the Global Air Cargo Supply Chain Using Porter’s Five Forces Model

Abstract

The objective of this research was to examine Cargolux Airlines International’s, one of the world’s major dedicated all-cargo airlines, strategic position in the global air cargo supply chain. To achieve this objective, a qualitative research approach was used. The data gathered for the study was examined by document analysis. The strategic analysis of Cargolux Airlines International was underpinned using Porter’s Five Forces Model. The study found that Cargolux has developed an extensive portfolio of products that satisfy discrete air cargo market segments’ requirements. The airline has also entered strategic partnership agreements with Emirates SkyCargo, Nippon Cargo Airlines (NCA), and Oman Air, which has enabled the partners to expand their route networks and to better optimize their available air cargo capacities. Cargolux has also established Milan-based Cargo Italia, which focuses on serving the important Italian air cargo market. The airline has also developed a successful two hub strategy in conjunction with one of its major shareholders, Henan Civil Aviation and Investment Company (HNCA). In 2017, Cargolux commenced a journey of transformation with the introduction of the “Cargolux 2025 Strategy”. A limitation of the study was that Cargolux’s annual revenues were not available. It was, therefore, not possible to analyze the airline’s revenue performance.