IAG Cargo unveils consolidation plans with extended services
British Airways World Cargo and Iberia Cargo together have formally announced a new brand called IAG Cargo with an objective to further consolidate their world cargo business. The new brand will also support new cargo entrants to the International Airline
With both Iberia Cargo and British Airways World Cargo as strong heritage brands, IAG Cargo has decided to offer its seamless customer experience. “We have recognised the need to create a new brand. By creating IAG Cargo, all our customers will benefit from a single range of products sold by a single sales team, along with access to a wider network which combines British Airways’ network strength in North America, Asia and Africa with Iberia’s in Latin America,” said Gunning.
According to Gunning, IAG Cargo business has been designed to be scalable and easily able to accommodate new entrants. In April 2012, following the purchase of BMI by IAG, BMI Cargo became part of the IAG Cargo single business unit. “Alongside the addition of extra capacity and routes to the IAG Cargo network, the BMI purchase proved a successful test case for integration,” he said. He asserted that the combined networks of Iberia, British Airways and BMI provide the most extensive and geographically diverse global cargo network, delivering to all major continents throughout the world. “As part of the launch, IAG Cargo is investing significantly in marketing to highlight the core strengths of the company: network reach, outstanding products and dynamic distribution channels, all communicated through a common brand identity,” Gunning emphasised. Questioned about the USPs of this combined entity, he observed that the greatest impact of the consolidation would be one of scale.
In addition, as a combined business, IAG Cargo has joined the top table of international airfreight carriers, becoming the seventh largest in the world. IAG Cargo provides wide body lift to more of the top 120 cargo destinations than any other air cargo carrier. This is a network that serves both major freight lanes and links destinations not served by other carriers, connecting to more than 350 destinations across the globe. Gunning also made it clear that the present market scenario is not very optimistic, “IAG Cargo has chalked out long-term plans to remain at the top position. As we enter the New Year, economic uncertainty makes predictions for 2013 difficult to make with any assurance. It’s likely that we will see continuing weak demand, certainly for the first half of the year along with the continued yield pressures and over-capacity that have been a hallmark of 2012,” he shared. However, for IAG Cargo, the focus for 2013 remains on maximising its network connections to best serve the customers, continuing to develop our range of accessible distribution channels and delivering high-quality premium products across the extended network.