Cargo Chat: Swiss WorldCargo’s Stoll on cargo’s digitalization potential

Swiss International Air Lines, a passenger-focused combination carrier within the Lufthansa Group, is one of many combination carriers that adapted its business to the COVID-19 pandemic by increasing its cargo operations and launching cargo-only flights with passenger aircraft during the first half of 2020. By the end of the year, Swiss’s cargo division Swiss WorldCargo had operated more than 1,000 such flights, expanding from its early cargo-only operations transporting pandemic-related medical and personal protective equipment to carrying general cargo in the cabins of select charter flights. The airline’s cargo leadership team has similarly shifted. Lorenzo Stoll stepped into the lead role at Swiss WorldCargo’s airfreight division on April 1, after working on the passenger side of Swiss International Air Lines since 2013. [caption id="attachment_94996" align="alignright" width="350"] Lorenzo Stoll, Head of Swiss WorldCargo[/caption] Stoll recently joined Air Cargo World to discuss his strategic outlook and plans for digital initiatives at Swiss WorldCargo as the airline begins to ramp up its passenger service and the industry looks to a gradual return of belly cargo capacity. Air Cargo World: As a combination carrier, Swiss already has robust digital processes in place for passenger operations. Are you hoping to bring over some of the digital processes from the passenger side of the business to the cargo side? LS: This is one of my intentions. One of my visions for the future of Swiss WorldCargo is that we participate as an active player in the digitalization of the supply chain world and be one of the airlines that shape it. I think it's of vital importance for all of us if we want to keep a spot in the market, because there are a few digital behemoths around that could disrupt the industry pretty fast. ACW: You come from the passenger side of the business, so what interested you about taking on the cargo role, especially given the state of flux that the industry is in due to the pandemic? LS: Well, if there is one thread across my whole professional career at Swiss in the passenger business or at Nestle before, it is my passion for the customer. Passion for the customer and passion for change. I think that these two things build up very well. Also, at Swiss WorldCargo we are recognized as being very customer-focused and customer-centric. I can contribute to that and make it even more customer-focused and really become the airline you turn to when there is nobody else that can help you with a shipment. I think change is required. We are currently focusing on questions like how we will get out of this crisis and if our working structures and processes are still fitting for the future. I'm very excited about discovering this new world. And while preparing for stepping up, I was also amazed about how underrated airfreight is within the airline industry. Everybody talks about the glamour of the passenger business but the vital role that we play in the global supply chain is often ignored. I would like to try to emphasize the relevance of the cargo business much more. One thing I think holds true for Swiss and probably also for a number of other airlines, is that air cargo has moved from being some sort of a side business to almost the hero of the airline due to the pandemic. Furthermore, I think it's important that we will remain in the spotlight of the airlines in future, and that everybody is aware of the contribution we make to the global supply chains, but also to the airlines as business entities. ACW: Returning to the digital outlook, are you finding that forwarders are more interested and willing to do more of the business online through digital channels like e-booking or digital payments, as the digitalization has taken off during the pandemic? LS: C Coming from the passenger side, one thing that struck me is how little of the whole flow of goods and the processes behind is digitalized today. In passenger services, a passenger can interact with us from the beginning to the end. [The passenger] can do that all on their own, all digital, like change flight dates, re-book, change seats, and so on. Whereas in the cargo business there is still a lot of paper around and manual work is needed. I assume that there is a huge potential for digitalization and for improving forms of self-service for the forwarders. ACW: I believe that Swiss recently announced plans to resume service to Miami, which is also of course a major pharma transit hub. I was curious to what extent cargo was brought to the table in that decision? And how does the cargo team shape future passenger schedules as those begin to fill out again? LS: At SWISS the whole network planning is currently done very closely between the Swiss WorldCargo teams and the SWISS passenger teams. At the current stage, cargo represents a significant source of revenue for SWISS and it's a very important contribution specifically on the Miami route. The potential of the cargo revenue was included in the business case. We intend to proceed like this also in the future. We are currently preparing our next normal for the post-pandemic Swiss by building scenarios with goods flows, but also upcoming passenger flows. We are trying to combine those to bring the best possible network to the market.

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