Selection of strategic cargo alliance by airlines

• We explore how an airline selects a strategic cargo alliance for membership.
• The business benefit is the most important dimension for airlines selecting a cargo alliance.
• China Airlines achieves greater benefits by choosing SkyTeam Cargo rather than WOW.
• We provide airlines with a useful reference for future strategic cargo alliance selection.

This study explored how an airline selects a strategic cargo alliance for membership. Through a review of the related literature and from expert interviews, dimensions and criteria for selecting a strategic cargo alliance were first collected and then screened using the Fuzzy Delphi Method (FDM). Weights of the selected dimensions and criteria were then calculated using the Fuzzy Analytic Hierarchy Process (FAHP). Sorted by weight, the dimensions in descending order are business benefits, resource complementarities, cost effectiveness and brand image. The three criteria considered most important by airlines are ‘enhancing flight route and frequency,’ ‘increasing revenue,’ and ‘improving load factor’. Finally, a case study on how the Taiwan-based China Airlines (CAL) selected its strategic cargo alliance is presented to provide airlines with a useful reference for future alliance selection.