Consultancy for freight market and implementation strategy for airport ground services (KSA)

Client: Saudi Airlines Cargo / SAL Saudi Logistics Services – JSC
Consultancy services (2020-2021)

AERTEC was chosen to support SAL's team of consultants in designing and developing the cargo strategy to strengthen SAL's presence in the freight market, focusing not only on air cargo but also linking it to the different types of freight and modes of transport (land, sea and air). The scope of the services provided by the consortium formed by AERTEC, a European airport consultancy firm and a Brazilian engineering company is as follows:

  • Overall security, alignment and gap analysis for 50 value creation opportunities and business plans.
  • Overall conclusions of the freight market assessment, summary, recommendations and development of dashboards.
  • Drawing up 50 scorecards with summaries of the overall result.
  • Historical data analysis and regional and international cargo forecasting.
  • Performing a first-order sensitivity analysis for each value creation opportunity based on the key assumptions identified by the consultancy team. The team analysed the stress tests of the business plans to determine the extent to which they were sensitive to variations in baseline data.
  • Analysis of synergies, complementary strengths and redundancies.

It should be noted that given the short timeframe available to deliver these services, the AERTEC team focused its efforts on short-term business results first, and then on medium- and long-term business results.

One of the strategies applied was to divide the analysis into different strands, to focus on revenues, margins, capacities, investment required and enablers. The workshops were divided as follows:

  • Operational synergies
  • Existing value chain services
  • New value chain proposition
  • Opportunities outside the value chain

AERTEC delivered added value by finding a way to speed up implementation, since the client did not want to relinquish its dominant position among users. Its goal was to attract a strategic, specialised logistics service.

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