EUROPEAN CARGO (INC. UK)


F


AIR CARG O WEEK


GLOBAL CARGO MARKETS TEST EUROPE’S RESILIENCE


BY Edward HARDY


09 F


rom geopolitical upheaval to shifting supply chains, Europe finds itself at the crossroads of an increasingly unpredictable global cargo market. The continent has long been a bridge between East and West, but


the pressures of recent years have forced carriers and shippers alike to rethink


strategy. Routes once considered reliable are now being recalculated in the face of diversions, higher costs and sudden volatility. The challenge is not simply one of geography. Europe’s economic


recovery remains patchy, while energy prices and inflation continue to shape demand. At the same time, Asian markets, particularly India and South Korea, are growing rapidly, reshaping trade flows. The question for European players is how to remain competitive when rivals across the world are able to pivot with speed, invest in new infrastructure, or harness lower cost bases. Nick Diesel, Managing Director of Virgin Atlantic Cargo, says the


stakes are higher than ever: “We’re in a world of a lot of uncertainty, and that’s actually become the norm in the last couple of years. I think we’re really well practised in dealing with that uncertainty, but it means you can’t take anything for granted. You have to be both nimble in the short term and consistent in the long term.”


Agility in an unpredictable landscape Diesel points to Europe’s position as both a hub and a bottleneck in the global system. The closure of Russian airspace, for example, has forced many carriers to reroute Asian services, while conflict in the Red Sea region has disrupted flows through the Suez Canal. Yet he argues that adaptation has become second nature: “The reality is you have to do both – respond to the immediate and keep an eye on the longer-term vision. We set out our strategic ambition, and while there are curveballs along the way, we make sure each decision still pushes us broadly in the right direction.” This balance, he insists, comes down to structure. His team dedicated “cargo


runs a excellence” unit, insulated from daily


firefighting, tasked with monitoring long-term transformation. “That function doesn’t get pulled into the day-to-day challenges that are just inevitable in this industry. It helps keep us honest on those transformational priorities,” Diesel explains. At the same time, agility on the ground remains critical. During the


pandemic, Virgin Atlantic’s cargo business, like many others, pivoted to maintain supply chains at a time when passenger networks had collapsed. Diesel says that mindset has endured. “We like to be as agile as possible and we like to say yes as much as possible to customers. If we’re approached with something new, even if it’s not something we do today, we’ll look at whether it can work. That problem-solving mentality is what sets us apart.”


India and beyond: Where Europe meets Asia If Europe is wrestling with uncertainty, Asia is reshaping the playing field. India, in particular, has emerged as a focal point for growth. Diesel describes it as “a good bet” that has paid off: “We’ve gone from a single flight up to five daily flights into India – two into Mumbai, two into Delhi, and one into Bengaluru. Earlier this year we made the decision to insource our local team, showing just how committed we are to that market.” The draw, however, is not just traffic to and from the UK. Europe’s


ability to serve as a transshipment hub into the United States gives it an edge. “The facility we have at Heathrow allows for really seamless operation, minimising the time between import and export. That makes a huge difference for shippers who want reliability and speed,” Diesel says. Competition, though, is intense. Gulf carriers continue to channel


Indian goods through their hubs, while Asian airlines are boosting direct services. To strengthen its position, Virgin Atlantic has signed a memorandum of understanding with Indian low-cost carrier Indigo, aimed at expanding cooperation on cargo. “It’s too early to say exactly what that will look like, but it’s exciting,” Diesel notes. “They’re a great partner on the passenger side, and we see opportunities to do more together in cargo.” In fact, we now have an interline agreement in place connecting India with the US via Manchester. Elsewhere in Asia, the airline is preparing to launch a new service to


Seoul Incheon, while its Shanghai route has been closed. Diesel says such decisions are driven by a long-term assessment of economic development. “It’s about taking that longer-term view – looking at where growth is expected, and where we can add real value. Cargo plays a much bigger role in those decisions than it used to, especially after the pandemic showed how critical it was.”


www.aircargoweek.com 10 NOVEMBER 2025 ACW


“We like to


be as agile as possible and


we like to say yes as much


as possible to customers.”


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