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Infrastructures 2018, 3(1), 7; https://doi.org/10.3390/infrastructures3010007

Cooperating to Compete in the Global Air Cargo Industry: The Case of the DHL Express and Lufthansa Cargo A.G. Joint Venture Airline ‘AeroLogic’

School of Tourism and Hospitality Management, Suan Dusit University, Huahin Campus 77110, Prachaup Khiri Khan, Thailand
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Received: 28 November 2017 / Revised: 2 February 2018 / Accepted: 13 March 2018 / Published: 16 March 2018
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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. View Full-Text
Keywords: air cargo; AeroLogic; case study; DHL Express; freighter aircraft; joint venture; Lufthansa Cargo; route network air cargo; AeroLogic; case study; DHL Express; freighter aircraft; joint venture; Lufthansa Cargo; route network
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
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Baxter, G.; Srisaeng, P. Cooperating to Compete in the Global Air Cargo Industry: The Case of the DHL Express and Lufthansa Cargo A.G. Joint Venture Airline ‘AeroLogic’. Infrastructures 2018, 3, 7.

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