More than 100 clients have presented LATAM Cargo with a nice Christmas present. They enrolled in the ‘Cargo Rewards’ Program launched a year ago and committed themselves to contribute tonnage. The carrier speaks of an overwhelming success.
Book cargo shipments and gain free flights to destinations standing on your wish list, be it Paris, Madrid or Frankfurt. It’s as easy as that. For every single kilogram booked, members of the Reward Program can earn 0.40 Cargo Credits on a monthly basis. One Cargo Credit is equivalent to one kilometer passengers are credited to their LATAM miles account.
Minimum 500 kilograms p. a.
In order to become a program member, forwarding agents have to commit themselves to book at least 500 tons on global routes served by LATAM Cargo or one of its group members within a calendar year. These comprise ABSA-Aerolínhas Brasileiras, Aerotransportes Mas de Cargo Mexico, and Línea Aèrea Carguera de Colombia.
Since the introduction exactly a year ago, 100-plus forwarders have joined the program meanwhile, accounting for the astonishing figure of 80 percent of the total tonnage flown by LATAM Cargo on international routes.
In the course of this year, 68% of the program’s members have converted their cargo credits into their miles program, and 50% of the accrued kilometers were converted into flight tickets valid on LATAM’s network or that of the global oneworld alliance, which the South American carrier is part of. In view of these figures, cargo experts assess the loyalty marketing initiative as a major success.
New product campaign
The Reward initiative was complemented by a new product portfolio launched last October (CargoForwarder Global reported exclusively). It offers as many as 19 booking combinations tailored to the individual needs of customers.
In addition to LATAM Cargo’s standard product and its premium service Express designed for critical and urgent shipments, the carrier now also offers a new service called Flex. It is a low-cost solution for shipments which can arrive at a given destination within a more flexible deadline but that also promises a maximum transit time. Cristián Ureta, CEO of LATAM Cargo stated upon the launch of the program: “We designed our products aligning these needs with our commercial strategy, which is based on agility, reliability and trust. Through this product portfolio, with clearly defined service standards, we seek the stable preference of our clients.”
Up to now, the new portfolio is available for cargo originating in North America and Europe, while in South America the implementation is being prepared and will be concluded during the first quarter of 2017, assures the carrier.
LATAM and Qatar Airways seal their cooperation deal
In other news published at the end of December, the LATAM Airlines Group and Qatar Airways announced that they have completed their transaction whereby the Doha based carrier takes a 10% shareholding in the LATAM Group. Qatar Airways also has a 20% stake in IAG
The agreement means that Qatar Airways will invest around $600 million in LATAM by means of a capital increase. This part of the deal was finally signed off on 28. December.
LATAM however, is still waiting on final approval of a so called “ transatlantic immunized joint venture with the IAG partners, British Airways and Iberia.
The Qatar / LATAM deal has however also now received regulatory approval from the Brazilian authorities.