In the next instalment of our senior executive interview series, Hamdi Osman, founder and chief executive of SolitAir, discusses the future of air cargo in a fast-changing economic landscape, and shares how innovation and sustainability will continue to shape SolitAir’s operations.

How are global economic conditions affecting the air cargo industry, and what implications does this have for SolitAir?

From a global perspective, while the overall air cargo industry faces challenges due to global economic conditions, certain sectors like e-commerce are helping to sustain demand.

Despite economic challenges, e-commerce continues to drive air cargo demand as it is  predicted that, by 2027, e-commerce will make up nearly a quarter of total global retail sales. The need for rapid delivery of online purchases keeps air cargo volumes relatively stable.

Also, ongoing supply chain issues in the Red Sea and Panama Canal, including port congestion and labour shortages, are pushing businesses to rely more on air cargo for time-sensitive shipments

Furthermore, regional variations are playing a part when it comes to economic conditions. For example, China’s economic weakness is affecting its export volume, while other regions may experience different trends.

However, closer to home especially in the Gulf region, the Gulf Cooperation Council (GCC) countries are experiencing moderate economic growth, driven by diversification efforts and investments in infrastructure. This growth supports the air cargo industry by increasing trade volumes and demand for logistics services.

Also, fluctuations in oil prices are affecting operational costs for air cargo carriers. Higher oil prices can lead to increased fuel costs, impacting profitability.

Furthermore, significant investments in airport infrastructure across the Gulf region enhance the capacity and efficiency of air cargo operations. This is crucial for handling increased cargo volumes and improving service reliability.

SolitAir benefits significantly from our location based at Al Maktoum International Airport in Dubai South, a strategic hub with advanced infrastructure. This location supports efficient operations and connectivity to key global south markets within a six-hour radius from the UAE.

Also, the growing demand for rapid and reliable logistics solutions in the Gulf region, particularly for e-commerce, pharmaceuticals and perishables, aligns well with our service offerings.

We plan to expand our fleet and routes, including new services to India, Africa and other key markets. This will position SolitAir to capitalise on regional trade growth. Furthermore, we will offer bespoke solutions to clients that can include multi-sectors operations. Currently, we operate daily scheduled services to Riyadh and Dhaka.

What strategic advantage is there for SolitAir being based in the UAE?

SolitAir’s strategic advantage of being based in the UAE stems from several key factors.

First, the UAE’s geographic position at the crossroads of Europe, Asia and Africa makes it an ideal hub for air cargo operations. This central location allows SolitAir to efficiently connect with major global markets, reducing transit times and enhancing delivery speed. With over four billion consumers within a six-hour flight radius, we can leverage this strategic position to offer unparalleled connectivity to our clients.

Second, the UAE boasts some of the world’s most advanced airport facilities, including Dubai International Airport (DXB) and Al Maktoum International Airport (DWC). These airports offer state-of-the-art cargo handling capabilities, ensuring efficient and reliable operations. For instance, DXB is one of the world’s busiest hubs for international air freight, with a handling capacity of 2.8 million tonnes.

Third, the UAE provides a supportive regulatory framework, attractive tax policies and streamlined customs procedures. These factors create a favourable business environment for air cargo companies, facilitating smooth and cost-effective operations.

Fourth, the UAE’s proximity to rapidly growing markets in the Middle East, Africa and South Asia positions SolitAir to capitalise on increasing demand for air cargo services in these regions. This strategic location allows the us to tap into new business opportunities and expand our market reach.

Finally, the UAE has a well-developed logistics network, including integrated multimodal transport solutions that combine air, sea and land transport. Together with the upcoming Etihad Rail, this comprehensive network enhances SolitAir’s ability to offer logistics solutions to our clients, improving overall efficiency and service quality.

How is SolitAir adapting its operations to meet the increased demand for fast and reliable shipping in this era of e-commerce boom?

SolitAir is adapting its operations through several strategic initiatives.

First is with our fleet expansion; we are actively growing our fleet to enhance capacity and reach. We currently operate two Boeing 737-800 freighters, each with a 23-tonne capacity. An additional Boeing 737-800 freighter is expected to join the fleet in January 2025, enabling further expansion of operations. Moreover, SolitAir is exploring the integration of electric aircraft to complement our existing fleet, demonstrating a commitment to innovation and sustainability.

Second is through advanced infrastructure. We operate from a state-of-the-art facility at Al Maktoum International Airport in Dubai South, equipped to handle a wide range of cargo, including e-commerce, pharmaceuticals, perishables, dangerous goods and high-value shipments. This infrastructure supports efficient and rapid processing of goods.

Third, SolitAir’s middle-mile logistics model ensures quick and reliable delivery within 12 to 24 hours. This model is crucial for meeting the speed-to-market needs of e-commerce businesses, freight forwarders and SMEs.

Fourth is our flexibility in creating bespoke solutions for customers, including multi-sector flights. This adaptability allows us to cater to specific client needs and optimise routes for maximum efficiency.

Fifth is through leveraging the latest technologies to optimise operational efficiency. This includes real-time tracking, automated handling systems and advanced data analytics to improve route planning and reduce delivery times.

Finally, by forming strategic partnerships with other logistics providers and e-commerce platforms, SolitAir can offer integrated solutions that streamline the supply chain and ensure seamless delivery across markets.

Can you discuss SolitAir’s efforts towards sustainability and how you are addressing environmental concerns within the industry?

SolitAir is taking significant steps towards sustainability. Our Boeing 737-800CF is equipped with winglets to improve flight efficiency and overall performance. The aircraft is powered by two CFM56-7BE turbofan engines which deliver a maximum thrust of 32,900 lb and reduce fuel consumption and carbon dioxide (CO2) emissions by 15-20% compared to the original first-generation 737s.

We are also exploring electric aircraft investments and have already signed contracts with two electric aircraft manufacturers. We are set to receive several electrically powered aircraft by late 2027 or early 2028, further reducing the environmental impact of our operations.

This interview continues after the below picture…

SolitAirSolitAir
Dubai-based carrier SolitAir was founded in 2024.
How is SolitAir leveraging advancements in technology and digitalisation to enhance cargo handling?

SolitAir is harnessing cutting-edge technological innovations and digital transformation to revolutionise and streamline cargo handling processes across multiple critical areas.

First, we are utilising advanced tracking systems to provide real-time visibility of shipments. This technology enables customers to monitor cargo throughout its entire journey, ensuring transparency, reliability and improved customer confidence.

Second, at our state-of-the-art facility at Al Maktoum International Airport, we employ automated cargo handling systems which streamline loading and unloading processes. This results in reduced handling times, minimising errors and improved operational efficiency.

Third, we leverage data analytics to optimise our operations. By analysing data on cargo volumes, routes and delivery times, we can make informed decisions that improve efficiency, reduce costs and enhance service quality.

Fourth, SolitAir has integrated digital platforms to facilitate seamless booking, tracking and management of shipments. These platforms provide customers with easy access to information and services, improving the overall customer experience and enhancing operational transparency.

Fifth, we are also exploring the use of sustainable technologies, such as electric ground handling equipment and fuel-efficient aircraft, to reduce our environmental impact.

These technological advancements and digitalisation efforts enable SolitAir to provide fast, reliable and efficient cargo handling services, meeting the growing demands of the e-commerce sector and other industries.

What daily complex challenges does SolitAir face and how do you overcome them?

The challenges we face are often opportunities in disguise. For instance, we frequently receive requests to operate in countries that fall outside the scope of our Phase 1 operations. While this presents a challenge, it also highlights growing interest in our services, and we are actively working on evaluating and planning future expansions to accommodate these requests.

We are also seeing high demand from customers in the sectors we currently serve. However, due to a shortage of narrowbody aircraft, we are temporarily unable to fully accommodate all requests. To address this, we are exploring options to expand our fleet and improve our operational capacity to meet customer needs in the future.

How does SolitAir invest in its workforce, and what initiatives are in place to attract and retain top talent?

Our approach to workforce investment and attracting top talent is deeply rooted in my leadership philosophy.  As founder and chief executive of SolitAir, and drawing from my extensive experience in the logistics industry, including 34 years at FedEx, we have implemented a people-centric strategy at SolitAir that focuses on three key principles.

First is ‘people, people, people’. This philosophy emphasises that without the right people, no company can survive or thrive in the competitive air cargo industry.

Second, is attracting and retaining top talent. SolitAir searches for top talent in the industry and only the most qualified candidates are brought on board. Once they are hired, employees receive thorough training to excel in their roles. We also prioritise looking after our workforce, ensuring their needs are met.

Third is our mantra ‘focus on people, service, profit (PSP)’ which underscores our priorities: a) people come first, as they are the foundation of the organisation; b) service excellence follows when you have the right people in place; c) profit is the natural result of focusing on people and service.

Reflecting on your role as founder and chief executive of SolitAir, what significant lessons have you learned about your organisation, and of the dynamics of the air cargo industry?

The most significant lesson I have learnt in life is to keep the main thing ‘the main thing.’

For SolitAir, this means staying true to our mission of revolutionising regional air cargo logistics, continuously investing in our workforce, and maintaining a customer-centric approach to service

What major trends do you foresee impacting the air cargo industry in the next five to 10 years?

As the global road and sea transportation networks continue to evolve, air cargo is expected to remain a critical and trusted mode of transportation. The growth of e-commerce and international trade distribution will drive continued demand for air cargo services.

Additionally, the ongoing trade tensions and potential trade wars in the coming years could further stimulate growth in the air cargo industry, as businesses may increasingly rely on air transportation to navigate uncertainties and maintain supply chain flexibility. This will help ensure that the industry remains dynamic and resilient.

What are the main goals of SolitAir for 2025?

Our main goal for 2025 is to provide our customers with the highest level of service, delivering an unparalleled experience that exceeds their expectations. We aim to set a new standard in the industry, offering service levels that our clients can only dream of.

Additionally, we plan to strengthen our network by connecting Africa to the Middle East and the Indian subcontinent, enhancing trade and logistical connections between these key regions.

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