The annual meeting of sales of TAP Cargo, which took place yesterday in Lisbon, joined the whole sales structure of TAP Cargo to assess the results of last year, addressing also the strategies for 2017.
From various points in the world - from the traditional markets of the company, such as the United States and Europe, to the most unlikely, as Bangladesh - the TAP Cargo gathers annually their sales agents, who have the opportunity to present in more detail their market and to contribute to the shaping of the strategy for the year.
More than a work meeting - essential to coordinate the work of all - this annual event is also an opportunity for people who work together, but around the world, to gather or to meet for the first time (as is the case of some sales agents), speak of the business in a more informal and establish labor relations stronger.
TAP Cargo Team
José Anjos has been the Director of TAP Cargo for 10 years, where he leads a total of 85 people around the world. With training in Electrical Engineering, has gone through several areas of the company - where he has worked for 30 years - since the maintenance to the handling, passing by the operational control. To WHAT'S|UP, he gave a overview of the business in recent years and spoke of the strategy to the next.
José Anjos, Head of TAP Cargo
"Cargo is the second business of TAP"
The business of Cargo runs, necessarily, alongside of passenger transport, in terms of structure and activity, taking into account the space of basement available for this purpose. Seen sometimes as a logistics area - needed for the activity - the business of the Cargo is much more than that, there essentially to make sales and generate revenue.
The air cargo transportation is always a very profitable business for the company, according to José Anjos: "Has levels of profitability always very high and, therefore, is a business very interesting: the better it goes, the greater will be the benefit that the company will have with it."
The Cargo has suffered some recession in recent years, at world level, reflecting a slight reduction in demand along with a greater overall supply of space on an aircraft. At the same time, and like any business, also this is dependent on the economies of the markets where it operates.
In the case of TAP, the crises experienced in recent years in the markets stronger - Angola and Brazil - have contributed to maintaining this global trend. Fortunately, the trend seems to be changing for TAP, since the data for the last quarter of 2016 suggest some recovery.
New routes, new challenges
The product of the business of TAP Cargo is created, necessarily, by the passengers. In this sense, and according to Jose Anjos, "the strategy goes a long way to follow the routes that are made available. These routes are offered to us for optimization. They can be good routes or not, but we have to work with what we have. In the face of what we have, the strategy is clearly to optimize the United States of America."
The new US destinations - New York, JFK and Boston - are, thus, the biggest challenge that the Cargo will face this year. Since they are one of the biggest bets from the Company, there is a clear need to have a concerted strategy, in order to achieve a satisfactory income in all these flights.
The long-haul flights are the most relevant for the carriage of cargo on business. It is in the long course that develop the big business and where the revenue is based. That is why the new destinations in North America are the number one priority of TAP Cargo, as confirms its director: "Miami, for example, has always been a good flight, so the challenges are mainly New York and Boston. And also the next destination, Toronto."
And it is precisely in Canada, a country that has recently negociated an economic agreement with the European Union (CETA - Comprehensive Economic and Trade Agreement), which is the priority of the TAP Cargo in respect of the expansion of its sales network.
TAP Cargo all over the world
It has been done a continuous effort to expand the logistical network of the load. There are no sales agents TAP around the world and is a constant work to try to have more agents in more places, a task which is not always easy. It is necessary that there should be an interest on the part of the agent in representing the TAP and it is essential that a study be undertaken into the methods of partnership, as well as, of course, the possibilities of transporting cargo for this location.The truth is that the network is being extended, often to sites unlikely as Bangladesh, where the TAP has a sales representative.
"We have to be careful, because the truth is that we aren't all over the place, and things have to be done with some guidance. We are walking in that direction. It is also part of our project to increase this network to make more sales," says José Anjos.
Alongside this expansion, remain the need to intensify the agreements with other companies, which are essential to ensure the access to destinations for which the TAP does not fly but which have the potential regarding the cargo.
More bets for 2017: pharmaceutical products and mail
The priority number two for the strategy in 2017, according to the director of TAP Cargo, is the reliance of the transportation of pharmaceutical products, in its modernization, the expertise of the service and the elimination of competition.
In the meeting of sales this year, it was still new to signing the contract of global partnership between the TAP Cargo and va-Q-tec, whose containers have a technology highly advanced that will allow a greater quality in the transport of sensitive goods, as is the case of pharmaceutical products.
José Anjos, Head of TAP Cargo, after signing the contract with Katharina Leibacher, Head of Parter Alliancess & Business Development for va-Q-tec
In respect of the carriage of mail, last point mentioned by José Anjos, the prospects are very positive: "It is an area in which we have intensified our attention, we got a new computer system and we are recovering many customers that we had lost due to poor control of what we did. We have a new tool that is bringing new customers and we will certainly continue to increase this year."
The activity of TAP as airline is, thus, more than the bustle at airports, the boarding and disembarking of passengers, in short, what is visible immediately. There are just people who embark with their luggage. In parallel, runs the business of transporting cargo, which has people dedicated to arrive at your destination with the most diverse goods urgently, many sources as quickly and efficiently as possible. This is a business critical to TAP, which grows with it and that is part of their success.
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