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Indiaexportnews.com

Alliance expected to die

  14.02.2008    

Underhanded competition between supposed allies is likely to doom airfreight alliances such as WOW Cargo Alliance and SkyTeam Cargo, a Lufthansa source told a German newspaper.
The WOW Cargo Alliance, formed by Lufthansa Cargo, together with the freight division of Japan Airlines, Scandinavia's SAS Cargo and Singapore Airlines Cargo, is expected to die, according to Germany's Die Welt newspaper.
The newspaper cited a source from Lufthansa Cargo as saying that the market is not "sufficiently aware of the advantages offered by the alliance".
Another airfreight alliance that faces the prospect of disbanding is its rival, SkyTeam Cargo, which ties together eight carriers, including Air France-KLM Cargo, Delta Airlines and Korean Air Cargo. The report said this alliance has also been experiencing problems, with member airlines becoming increasingly competitive rather than cooperating as a team.
WOW and SkyTeam Cargo alliances were formed in 2000 to harmonise networks, provide seamless transport services worldwide and rapid goods transfers at airports.
Instead members of the WOW alliance are reported to have competed against each other and to have failed to agree on joint offers, in light of the general increase in competition within the global commercial aviation industry, Shipping Gazette reported.


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