Partnership with CargoPoint is enabling Turkish Cargo to grow its market share in Uzbekistan

Unlocking Air Cargo Potential in Uzbekistan

A Strategic Partnership Powering Air Cargo Growth in Central Asia

Case Summary

Partner: Turkish Cargo (TK), www.turkishcargo.com

Services Involved: Air cargo marketing and sales, cargo reservation, RFS (road feeder services), tracking, coordination

Partner Benefits: Increased market share, effective capacity utilization, improved customer service

Background

Turkish Airlines (Turkish: Türk Hava Yolları) is the national airline of Türkiye and the largest carrier in the world by number of destinations, operating scheduled passenger and cargo services to 340 destinations in 132 countries in Europe, Asia, Africa and the Americas. It is one of the fastest growing airlines in the world. In Uzbekistan, Turkish Airlines is a major carrier linking Tashkent, Uzbekistan to global markets via its main hub in Istanbul.

Challenge: Optimizing Cargo Capacity

Turkish Airlines operates scheduled passenger and cargo flights to Uzbekistan, linking its main hub in Istanbul to the capital city of Tashkent and the regional airports of Navoi, Bukhara, Samarkand and Fergana. In air cargo, the key challenge in this market is the directional imbalance in cargo space utilization: while there is an overwhelming demand for space on the Istanbul - Tashkent segment, freight capacity on Tashkent outbound flights traditionally remains underutilized. That in effect means lost revenue for Turkish Cargo which, with a little careful approach, could be turned into an opportunity to increase market share.

Solution: Turning Empty Space into Business Growth

CargoPoint is an international freight forwarder headquartered in Tashkent, Uzbekistan, specializing in building and implementing air cargo sales & marketing solutions for airlines. In 2022, CargoPoint was appointed as GSA for Turkish Cargo in Uzbekistan and tasked with  streamlining the carrier's cargo sales and capacity utilization on its flights between Turkiye and Uzbekistan.

Having been authorized as designated cargo agent handling Turkish Cargo's sales, reservations and marketing for Uzbekistan, we started off with analyzing the market and setting up a sales strategy. Turkish Cargo, despite having a good market position, was punching well below its weight, especially in the main deck cargo market segment. Space was underutilized and customer service required serious overhaul.

Value of Partnership with CargoPoint

Cargo Sales & Marketing

CargoPoint has been acting as cargo sales agent for Turkish Airlines, for the territory of Uzbekistan since January 2022. We act as an extension of the Turkish Cargo sales team, coordinating space, reservations, cargo sales and marketing. Turkish Cargo’s air cargo sales volume from Tashkent to global destinations has doubled in the 10 months of 2022, compared to the previous year.

Road Feeder Services

Turkish Airlines is utilizing CargoPoint’s Central Asian trucking distribution network to deliver offline shipments from Tashkent airport to offline destinations across Uzbekistan and Central Asia, linking our air cargo hub in Tashkent with smaller regional airports. Our RFS product adds value to Turkish Cargo’s regional network, bringing Turkish Cargo’s customers closer in a well-organized air + ground last mile supply chain.

What are the benefits of Turkish Cargo’s partnership with CargoPoint?

Turkish Cargo’s goal is to become one of the top three air cargo brands in the world in line with our strategic vision. This requires a concerted effort on the part of our global sales force, including strategic alignment of our global cargo agents with our business goals. Having CargoPoint as our cargo sales agent in Uzbekistan allows us to strengthen Turkish Cargo's market position in Uzbekistan, both in air cargo sales and road feeder services. CargoPoint’s strong market position in the air cargo sector of the country is a major contributor to the realization of our strategic growth plans in Uzbekistan and Central Asia. We look forward to building on this relationship for even better results.

Conclusion

Partnership between CargoPoint and Turkish Cargo has been pivotal in establishing an air cargo supply chain which benefits the airline's local and global customers. Using CargoPoint’s local and international cargo sales and marketing network, Turkish Cargo has been able to improve its financial performance through better management of cargo capacity and creation of new air cargo products to suit the needs of the local market in Uzbekistan. This partnership showcases the value of working with experienced air forwarders well-versed in air cargo sales and marketing.