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Posted By OrePulse
Published: 07 Oct, 2024 09:23

The sky’s the limit for Qatar Airways Cargo

By: Logistics middle east

As one of the global leaders in air freight, Qatar Airways Cargo is not just keeping pace with the evolving cargo industry—it’s setting the standard. Under the leadership of Mark Drusch, Chief Cargo Officer, the company has embarked on an ambitious journey of innovation, sustainability, and growth. With over two decades of experience in the airline industry and a strong background in e-commerce, Drusch is determined to lead Qatar Airways Cargo into a new era of digitalization, capacity expansion, and strategic partnerships.

Drusch’s extensive experience spans multiple sectors across the aviation industry. Before joining Qatar Airways Cargo, he spent over 20 years working with major US airlines such as Continental and Delta, where he held roles overseeing commercial scheduling, revenue management, fleet planning, and strategic alliances. Since joining Qatar Airways in 2019, Drusch has been pivotal in building strategic alliances and driving digital innovation. “I’ve always focused on efficiency and profitability, and that’s what we’re aiming to achieve at Qatar Airways Cargo,” he explains.

As it celebrates its milestone 20th year of operation in 2024, Qatar Airways Cargo maintained its position as the world’s leading air cargo carrier, forging ahead with a strategic focus on digitalization, sustainability and growth, contributing towards an increase in the company’s market share to 7.1% in 2023/24, up by 0.04% compared to the previous financial year. “We are already best in class, but my focus is on finding every opportunity to improve and ensure we lead the industry,” says Drusch. His vision for Qatar Airways Cargo extends far beyond operational improvements. From significant investments in new, more efficient freighters to pioneering initiatives in sustainability and forging critical industry alliances, Drusch is positioning the company to take advantage of emerging markets and the ongoing e-commerce boom.

Digitalization and technological innovation

In his tenure as Chief Cargo Officer, Drusch has placed a significant emphasis on Qatar Airways Cargo’s digital transformation. While the company already stands as a global leader in air freight, Drusch sees untapped potential in modernizing its operations, particularly through the use of digital technologies.

“We are leading the charge in digitization, a space where the air cargo industry has lagged behind for far too long,” says Drusch. “The industry is still using practices that date back 25 to 30 years. While we’ve seen passengers benefit from streamlined, tech-enabled processes, cargo is only now catching up.”

A key part of this transformation begins with the simple things, such as eliminating paper-based processes, such as airway bills, and standardizing technologies across the sector. Drusch explains the importance of aligning on a universal QR code system for tracking shipments, “Why do we still have multiple QR codes for the same shipment across different carriers? It creates inefficiencies and hinders smooth transshipments. If we can adopt a single, standardized system, the entire industry will benefit.”

Qatar Airways Cargo has been at the forefront of this movement, implementing digital platforms like its Digital Lounge for real-time pricing and shipment tracking. One of the recent innovations is the introduction of the My Allotments feature, which allows customers to view and book allotments directly online. This feature provides personalized dashboards and real-time updates, ensuring that customers can make bookings efficiently while preventing overbooking. Such innovations not only enhance customer experience, but also drive operational efficiencies. Drusch believes that these changes will set the standard for the entire industry. “We are looking to lead by example,” he says, noting that Qatar Airways Cargo is uniquely positioned to push these advancements due to its size and influence in the global market.

Capacity expansion and strategic growth

Qatar Airways Cargo is positioned to capitalize on global growth opportunities, thanks to its strategic geographic location and significant investments in fleet expansion. At the heart of this strategy is an order for 30 Boeing 777-8 freighters, with an option for an additional 16, set to join the fleet by 2027.

Discussing the rationale behind these investments, Drusch emphasised the importance of Qatar’s geographic location, “Doha is at the center of the modern Silk Road. We are within the full payload distance of two-thirds of the world’s trade routes,” he explains. This strategic advantage, combined with the rapidly growing markets in India and the Middle East, puts Qatar Airways Cargo in an ideal position to expand and grow its operations.

Drusch also highlighted the economic potential in Africa, one of the fastest-growing markets globally. “We’re anticipating an increase in economic growth and trade demand in and out of Africa over the next decade. That’s why we’ve made strategic investments, including our involvement in Rwanda, to strengthen our presence in the region,” he says. The addition of these new freighters will enable Qatar Airways Cargo to meet the rising demand across its expanding network, which already spans over 70 dedicated freighter routes and 170 belly-hold destinations.

Furthermore, e-commerce has become a significant driver of growth for the global air cargo industry, and Qatar Airways Cargo is no exception. The COVID-19 pandemic accelerated the boom in e-commerce, and Drusch confirms that the demand has not subsided. “Consumers expect things fast and inexpensive, and the cargo industry plays a crucial role in meeting those expectations,” states Drusch.

Sustainability and ESG goals

Sustainability is a core focus for Qatar Airways Cargo, as the company continues to align itself with Qatar Airways’ broader environmental commitments, including its net-zero emissions goal by 2050. Drusch has been instrumental in driving sustainability initiatives, mainly through fleet modernization and operational efficiencies.

“The new Boeing 777-8 freighters are a significant part of our sustainability strategy,” Drusch explains. “They burn 20% less fuel than our current aircraft while carrying 15% more capacity. This is a major step toward reducing our carbon footprint and improving operational efficiency at the same time.” This investment aligns with Qatar Airways Cargo’s broader environmental efforts to minimize fuel consumption, reduce emissions, and adopt greener technologies across its operations.

Qatar Airways Cargo has also focused on sustainable practices within its supply chain. The company recycles approximately 70% of its wooden pallets and is exploring biodegradable plastics for use in its cargo netting. Drusch emphasizes the importance of constantly looking for new ways to innovate, “We’re committed to growing our use of sustainable materials and transitioning our ground fleet to electric vehicles in the coming years,” he notes.

In addition to fleet and operational changes, Qatar Airways Cargo is actively involved in global environmental programmes, including its WeQare initiative. One of the standout projects under WeQare is the company’s dedication to rewilding programmes, where endangered animals are transported back to their natural habitats. “It’s a personal mission for me,” Drusch says. “We’re not just focused on reducing our carbon footprint; we’re committed to making a tangible difference in the world by supporting wildlife and humanitarian causes.”

Sustainable aviation fuel (SAF) is another area that Qatar Airways Cargo is closely monitoring. However, Drusch acknowledges the challenges in the current market, “The cost of SAF is still two to three times higher than conventional fuel, especially with fluctuating oil prices. Without significant investment from venture capital, it’s hard to see how it becomes viable in the next few years. But we’re keeping a close eye on developments, and as the technology evolves, we’ll be ready to adopt it,” he explains.

Qatar Airways Cargo’s multi-pronged approach to sustainability—from fleet upgrades to industry partnerships and environmental programmes—positions the company as a leader in advancing sustainable practices in the air cargo sector. As Drusch puts it, “There’s no single silver bullet, but we’re committed to finding every possible way to reduce our environmental impact.”

Partnerships and alliances

One of the most critical components of Qatar Airways Cargo’s strategy moving forward is the development of close-knit alliances within the air cargo industry. Drusch has extensive experience in building successful partnerships, having done so during his tenure in the passenger airline industry. He aims to replicate that success in the cargo division. Drusch explains, “These partnerships are essential for standardizing operations and ensuring that both freight forwarders and customers experience a seamless, efficient process across multiple carriers.”

These alliances are not just about increasing capacity; they are designed to bring about an industry-wide transformation through collaboration and the sharing of best practices. Drusch emphasizes the importance of standardizing technology and operations to improve efficiency. “We’re working to create standards that everyone can benefit from, whether it’s QR code usage or streamlined freight management processes,” he says. “If we lead with a system that makes sense, we believe others in the industry will follow.”

Qatar Airways Cargo’s global reach and strong presence in key markets such as the Middle East, Africa, and Asia make it a valuable partner for other carriers. Drusch sees partnerships as a way to extend the company’s reach into secondary markets that may not be directly served by its fleet. “By leveraging partnerships, we can connect smaller markets, making it easier for businesses to ship to secondary locations. This expands the market and creates more opportunities for our customers,” he explains.

The cargo division is also focused on building alliances that align with its digitalization goals. By partnering with other companies, Qatar Airways Cargo aims to create a unified technological ecosystem that simplifies the process for customers and increases the speed and efficiency of global shipments. “Our vision is to create a seamless, standardized process across the industry that benefits everyone,” says Drusch. “If we can achieve this, we’ll be able to grow the industry and expand opportunities for all stakeholders.”

Meeting unique needs with tailored solutions

Qatar Airways Cargo places a strong emphasis on meeting the diverse and evolving needs of its customers. With this customer-centric approach, the company continually innovates its product offerings to ensure that clients receive top-tier service regardless of their specific needs or requirements. “We recognise that our customers have unique requirements and often need greater flexibility,” explains Drusch. “A recent example of this is the launch of our AirPlus Solutions, which provides tailor-made options that best meet our customers’ needs while delivering our best-in-class service.”

The AirPlus Solutions initiative, introduced in September, exemplifies this customer-first approach by offering three bespoke services—Q-Climate, Q-Plus, and Q-Prime—each designed to cater to specific cargo needs. Whether it’s ensuring temperature control for perishable goods with Q-Climate or offering guaranteed uplift for urgent shipments via Q-Prime, Qatar Airways Cargo allows its customers to choose solutions that best suit their requirements. This attention to customization is part of the broader strategy to enhance the overall customer experience, while maintaining operational excellence.

Drusch highlights that these innovations are not just about adding new features, but about improving the end-to-end shipment experience. Through initiatives like real-time tracking on the Digital Lounge platform and high-priority handling for sensitive cargo, Qatar Airways Cargo ensures that its clients feel confident in the efficiency and reliability of their shipments. “We are focused on building alliances and solutions that standardize the process, making it easier for our customers to interact with us and gain access to a global network,” says Drusch.

Leading the future of air cargo

Under Drusch’s leadership, Qatar Airways Cargo is not merely adapting to the evolving air cargo industry—it is actively shaping its future. With a clear focus on digitalization, fleet expansion, sustainability, and strategic alliances, the company is poised to maintain its position as a global leader in air freight. Drusch’s emphasis on innovation, combined with his extensive experience in the aviation industry, has set Qatar Airways Cargo on a path toward continued growth and operational excellence.

Whether through the adoption of cutting-edge digital technologies, expanding its reach across emerging markets, or leading the charge in sustainability initiatives, Qatar Airways Cargo is committed to enhancing its operations while setting new industry standards. As Drusch aptly puts it, “We’re not just focused on being the best today; we’re focused on leading the industry into the future.”

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