Abstract
This paper presents a case study of the DHL Express and Lufthansa Cargo strategic joint venture cargo airline ‘AeroLogic’, the global air cargo industry’s largest operative joint venture between an airline and a leading international express and logistics provider. The study used a qualitative research approach. The data gathered for the study was examined by document analysis. The strategic analysis of the AeroLogic joint venture was based on the use of Porter’s Five Forces framework. The study found that the AeroLogic joint venture airline has provided synergistic benefits to both partners and has allowed the partners to access new markets and to participate in the evolution of the air cargo industry. The new venture has also enabled both joint venture partners to enhance their competitive position in the global air cargo industry through strengthened service offerings and has provided the partners with increased cargo capacities, a larger route network, and greater frequencies within their own route networks. The study also found that the AeroLogic business model is unique in the air cargo industry. A limitation of the study was that AeroLogic’s annual revenue or freight traffic data was not available. It was, therefore, not possible to analyse the business performance of the joint venture.
Highlights
In today’s highly competitive business environment, to achieve competitive advantage or to survive, many companies have formed strategic linkages with others [1]
Before proceeding to the case study, a review of the recent growth and trends in the global air cargo and express industry is useful as it sets the context underpinning the strategic direction of the DHL Express and Lufthansa Cargo ‘AeroLogic’ joint venture
This paper has examined, for the first time, the AeroLogic joint venture between DHL Express and Lufthansa Cargo AG
Summary
In today’s highly competitive business environment, to achieve competitive advantage or to survive, many companies have formed strategic linkages with others [1]. The necessity to serve firms with truly global supply chain requirements and distributive infrastructure has helped stimulate the formation of alliances within the global air cargo industry [2,3,4]. Air cargo carriers have started to cooperate through common product/service options, sales and compatible information systems and to develop global networks Such alliances are partly intended to combat the challenges posed by regulation in the industry, as well as the rapid growth of the integrated carriers, such as FedEx and United Parcel Service (UPS) [6]. The emerging entity, the joint venture, is an independent business and the owners participate in governing the new entity [11,14]
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