## 2 Background
### Past Failures of Air Cargo Alliances  
Strategic alliances, such as the **one**world, Star, and SkyTeam alliances have been in existence for airline passenger transport since the 1990s. Global airline alliances are bilateral or multilateral agreements in which the alliance member airlines share similar business objectives and they coordinate their services to attain their common aims [42]. Alliances are formed to create global service networks and to enable airlines to enter and establish an identity in new markets without providing aircraft and/or having full traffic rights, and to offer services that would be unprofitable if operated alone. Alliances create marketing advantages as consumers have demonstrated a preference for dealing with airlines with large route networks to minimize their own cost of travel, to obtain better services, and to take advantage of more attractive frequent flyer programs. Alliances can result in better access at congested airports and reduce costs through economies of scale. The major aim of an alliance is, therefore, to enhance member airlines' competitive positions, and to achieve higher profits for each of the members [37]. [PERSON] et al. [43] have found that strategic alliances involving high-level cooperation tend to increase member airlines' productivity and profitability.  
Strategic considerations and efficiency gains have also promoted the development of alliances within the global air cargo industry. These alliances primarily developed from existing passenger alliances, for example, SkyTeam Cargo Alliance from SkyTeam (AeroMexico Cargo, Air France-KLM Cargo, Alitalia Cargo, Czech Airlines Cargo, Delta Airlines Cargo, Korean Airlines Cargo) and the WOW Cargo Alliance from Star Alliance members (Lufthansa Cargo, Japan Airlines, SAS Cargo, Singapore Airlines) [44]. The WOW Cargo Alliance is now largely inactive [45; 46].  
However, air cargo alliances have often proved to be problematic. The reasons that strategic air cargo alliances have proved problematic are primarily driven by the air cargo market characteristics, that is, demand concentration, airline load factor considerations, uniform product appearance, coordination/cooperation arrangements between airlines, heterogeneity of goods and products shipped by air cargo, the time sensitivity of air cargo [44], the lack of economies of scale and scope [4], differences in member business processes and technology platforms, and cultural differences [47]. Further, air cargo is normally marketed more as a commodity rather than a brand. Airlines often have problems marketing their air cargo products as a brand and, therefore, an alliance brand may be even harder still [4].  
Notwithstanding, some airlines have displayed great interest in working more collaboratively, and have developed strategic partnerships, with selected air freight forwarders [5; 48; 49]. Successful cooperation in the air cargo industry exists either as vertically integrated cooperation or as strategic partnerships between airlines and air freight forwarders. The objective of closer partnerships between airlines and freight forwarders is to offer optimized product offerings to end customers [44]. Additionally, as previously noted, the alliances that have emerged between airlines and air freight forwarders are partly intended to meet the competitive challenge posed by the integrators [6]. The global air express market is considered very profitable as shippers are more prepared to pay higher prices due to the time-sensitive nature of their goods being shipped. Thus, the combined services of air cargo-carrying airlines and air freight forwarders may potentially enable them to participate in this market segment [44].