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By Alex Lennane
Forwarders could face charges for ‘low show’ or ‘no show’ cargo if airlines follow the example of Air France-KLM, which has successfully introduced penalty fees for unreliable bookings. In a bid to increase efficiency throughout the supply chain, the carrier took the bold decision last ...
Comment on this article
Yvan
February 05, 2013 at 2:34 pmInstead of raising cash from their lack of commercial awareness , airlines should focus on how to interact in a customer friendly way with the shippers and get to develop long term collaboration with them . The more intermediaries between airlines and shippers the more uncertainties and lack of visibility.Havea look toward sea freight where most lines are working hard on the balance between direct and NVO contracts.
Steve
February 05, 2013 at 3:41 pmAt last some much needed recognition for the value of air cargo capacity. This initiative is long overdue and we should praise the courage of those responsible. Regular no/low-show offenders might retaliate with a boycott strategy, but that can only be short term. If all cargo-focused airlines follow AF/KL/MP then value in the supply chain will inevitably increase. I am very happy to read this article.
Mark Mohr
February 05, 2013 at 8:52 pmIt’s important to note that the scenarios above typically apply to those forwarders who have recurring allocations with the airline. The solution employed in the CO world was typically to reduce allocations for forwarders that consistently under tendered and to not accept over tenders on flights with tight capacity. The latter point was important as over-tenders could disservice customers without allocations who typically were paying more than those with an allocation. The sales groups disliked the strategy, but it served capacity management well.