Fraunhofer Institute for Material Flow and Logistics IML
Up until recently, local service providers and airline companies provided air cargo handling services at airports. However, this market has changed with the liberalization of the EU and it is now open to independent service providers as well. The ability to offer standardized services at multiple locations from one source is proving to be a competitive advantage for network service providers over local service providers.
An air cargo handling company is considering expanding their business across Europe and they commissioned the Project Center Aviation Logistics of Fraunhofer IML to help them make this strategic decision. Within the scope of the project, the Fraunhofer IML project team analyzed the supply and demand of the market, examined the competitive environment in terms of competencies and potential of the client, and assessed the prospects and risks of undertaking this type of commitment.
Within the first stage of the project, the project team used data to survey the current situation and create a quantitative depiction of the European market. Then, the team analyzed the structure and volumes of air cargo handling companies at more than 60 locations. The team also examined the current and future development of the market in terms of customers, products, and competitors. By comparing the features of each location with the market development and the strengths and weaknesses of the client, the project team was able to narrow down the possible courses of action for their client.
In the final stage of the project, the project team carried out a detailed analysis of the identified courses of action and handed over the profiles of potential partners to the client. The recommendation ranges from opening individual locations at selected airports to creating a network of locations at multiple sites.