IAG Cargo goes in-house for a ‘cloud-first’ approach to digitalisation – The Loadstar

The race to digitalise air cargo and keep up with rapidly evolving customer demands has seen many airlines ‘go it alone’ and omit the collaborative element essential for quicker adoption and to encourage further development. 

IAG Cargo announced today it was more than doubling the size of its global digital and IT team, to 60. 

Chief digital and information officer David Walker said: “This is an exciting time at IAG Cargo as we continue to advance our digital capabilities while progressing on our cloud journey. We are witnessing a growing customer adoption of digital booking services across our global network, highlighting the importance of our technological advancements.” 

The decision by IAG Cargo to invest in its own in-house tech solutions reflects a shift for the air cargo industry as it more fully embraces digitalisation. However, this has highlighted that some airlines want to ‘go it alone’, while others look to external technology companies to help them.  

But a source asked The Loadstar: “They are airlines, so why are they trying to be tech companies? 

“They want to be in control of their own systems, but none of these systems are talking to each other, or there is a mis-placed sense of “data greed”. Collaboration across the industry is what is needed,” the source added.  

Indeed, the desire for big organisations to design in-house digital solutions that fit their individual specifications arguably misses the mark of the key element needed for modern, smart and cohesive systems: digital democracy and connectivity. 

At the IATA WCS in Hong Kong last week, IATA’s global head of cargo, Brandon Sullivan, underlined the importance of collaboration in achieving digitalisation.  

He said: “The biggest opportunity for the air cargo industry is digitalisation. This has not happened as fast as any of us would have liked. But progress is real.  

“Our call to action is clear: governments must consistently implement global standards, supply chain partners need to collaborate to overcome shared challenges and the entire industry must align to ensure a unified and effective approach to digitalisation.” 

In 2021, IAG Cargo sold its interlining technology to Freightos. According to the latter’s filings, IAG agreed to use the interlining platform exclusively for a period and “will be entitled to a revenue share in connection with the commercialisation of the interlining technology”. It is not clear whether that deal has now come to an end. 

Bu IAG Cargo certainly appears to want to develop in-house again. It said: “New and emerging technologies will play a crucial role in improving operational efficiency, enhancing customer experience and promoting sustainability. As part of this, IAG Cargo is moving towards a cloud-first approach that will improve data accessibility, scalability and flexibility.   

The operator told The Loadstar: “Our primary strategy revolves around leveraging package solutions and SaaS offerings with bespoke development, as required. This approach allows us to combine the benefits of established solutions with the flexibility of tailored development, when needed.”