Cargolux - Europe’s Largest All-Cargo Airline

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services all over the globe. The countries that they provide coverage for include: Africa, the Americas, Asia, and Europe. Their head office is located at Luxembourg Fidel Airport in Sandweiler. Cargolux freight services serve several of the international airports around the world. For example, in the United States, Cargolux transports cargo from Los Angeles International Airport in California to John F. Kennedy International Airport in New York. There are two central hubs, Findel Airport in Luxembourg and Milan, Italy, which operates Cargolux Italia, a subsidiary of Cargolux.

Key facilities and equipment used. The Cargolux headquarters in Luxembourg offers two types of facilities in order to support their aircraft fleet: maintenance facilities and shop facilities. A new maintenance hangar was constructed in May of 2009 that can accommodate two Boeing B747s or an Airbus A380 aircraft, nosed in. Shop facilities are located centrally around the maintenance hangars, which allows convenient access to the maintenance line. These shops are well specialized and well equipped with the latest technology such as: TRAX, ACARS, and AIMS. Cargolux uses a wide range of unit load devices (ULDs) and trucks in order to transport cargo to and from their destinations. For example, the type of ULDs include: PMC Q7, PMC Belly, AMD, HMC, and car racks. Trucks that are used range from mega semi-trailers to jumbo truck hanger combinations.

Operation Support

The Cargolux network links many of the world’s most essential production centers of industrial, automotive as well as many other consumer goods. They are constantly adapting and shifting their global network in order to better serve the changing market demand and trade flows. The “you name it, we fly it” philosophy is the perfect description of what Carglux represents. They specialize in the transportation of outsized cargo, perishable items, and a wide variety of live animals. They can be described as the Noah’s Ark of the skies. Flexibility is one of their strongest assets and they successfully build on long-term collaboration with their customers and well as other airlines in similar markets. Nonetheless, there a few limitations of what customers can transport. As of May 1, 2015, Cargolux announced that they would temporarily stop carrying certain types of lithium batteries on its cargo jets amid a global evaluation of such shipments (“www.wsj.com,” 2015). Currently, the “ban on bulk shipments expands the type of lithium batteries Cargolux won’t carry, though it doesn’t cover some power cells packed with or used in equipment” (“www.wsj.com,” 2015). Europe’s number one supplier of high-quality air cargo takes care of all cargo in a fast and reliable way across the globe.

Business Relationships

Principal customers. The principal customers that Cargolux serves are ones who will need to transport supply-chain cargo, perishable goods, live animals, sensitive and high-technology equipment and oversized freight goods.

Joint ventures. On August 11 2015, the partnership between Oman Air and Cargolux announced that they will operate two full freighters from Chennai to Muscat and Oman to India. This partnership will allow Cargolux to utilize Oman Air’s experience of flying to a wide range of destinations, including eleven connections in India. Niek van der Weide, EVP Sales and Marketing, Cargolux Airlines, states that “India will be a very important market for Cargolux in the future and we will look at further expansion soon with planned addition of Bombay as a second destination” (“www.cargolux.com,” 2015).

In 2013, Cargolux entered a joint venture with Henan Civil Aviation Development and Investment (HNCA) in order to expand China’s Henan Province capital Zhengzhou into the country’s cargo center. The Henan Province is located between Beijing and Shanghai, which allows immediate access to all population and accessible air traffic routes in China.

Agreements. Cargolux and Swissport International, the world’s largest provider of ground and cargo handling services in the aviation industry signed an agreement regarding a global strategic partnership. As of January 2015, Swissport will be the preferred supplier of Cargolux and will provide them with cargo and ramp handling services at selected destinations. Mutual clients of Swissport International and Cargolux will benefit from the improved quality standards and seamless transport transition. (“www.swissport.com,” 2015)

Cargolux Italia. Established in 2008, Cargolux Italia S.p.A., is an Italian air cargo airline that is a joint venture between various Italian investors and Cargolux. The head office is located at Vizzola Ticino and the central hub is located at Milan-Malpensa Airport in Milan, Italy. As of April 2015, Cargolux Italia’s fleet consists of three Boeing 747-400F aircraft. The following destinations with schedule air cargo flights are Azerbaijan, Brazil, Hong Kong, Italy, Japan, Kazakhstan, Luxembourg, United States, and the United Kingdom. Currently, Cargolux Italia transports cargo such as luxury vehicles, machinery and spare parts, clothing, perishables, animals, electric equipment, oversized cargo, and hazardous material.

The Future Plans of Cargolux

In February of 2013, the Board of Directors of Cargolux approved a business plan that will cover the years 2013 to 2017. In the announcement of the approval, there was the expected language describing a plan “designed to achieve profitable growth, enhance shareholder value and ensure the long-term sustainability of Cargolux” (“www.cargofacts.com,” 2013). Fortunately, the air freight market has seen a constant growth for the past two decades. Data shows that “global airfreight grows at approximately a multiplying factor of 2-to-1 compared to growth in global GDP” (“www.cargolux.com,” 2015). Cargolux concentrated on their opportunity to capitalize profits by expanding their network in the second largest economy in world, China.

In response to the growing market and operations in China, Cargolux has decided to expand their operations in Asia. Currently, Cargolux operates a hub at Zhengzhou International Airport, which happens to be the main manufacturing facility of Apple’s primary assembler known as Foxconn. As of September 29, 2015, Cargolux is negotiating with Boeing to buy five more 747-8F freighters that will be based in China, on top of their existing fleet of freighters. (“www.reuters.com,” 2015). Cargolux CEO, Dirk Reich, is considering both new and used Boeing 747-4Fs for this expansion. “The aircraft will be for a planned joint venture between Cargolux and China-based Henan Civil Aviation Development and Investment (HNCA), which took a 35 percent stake