2023 has been a year of records and growth for Challenge Group. She expects that the coming year will be an extension of more of the same as the group develops a strong strategy to continue ensuring that it is able to meet all challenges head-on.
challenge accepted! Success delivered. This is the business strategy of every Challenge Group company. In 2023, despite several difficult soft market conditions coupled with low returns, Challenge Group enjoyed a successful year. With the launch and deployment of its B767 fleet, the airline was able not only to lift more payload than ever before, but also increased its overall and charter activities, reaching the milestone of 1,000 charter flights that year. Challenge Handling and Challenge Technic have gained new clients such as MSC, SF and Smartwings, respectively, and have been able to increase the scope of their logistics services.
Read: Charters rise to the challenge
In 2024, the strategic focus across the Group is to strengthen the Group’s internal collaboration and improve the service that sets it apart from its peers in the air freight industry: offering a comprehensive logistics solution from a single source and stability in the supply chain.
“Our DNA and value proposition are based on a comprehensive solution approach to supply chain requirements. We have become the partner of choice when it comes to complex sectors and specific/unique logistics needs, in terms of commodity and destination,” explains Yossi Shukron, CEO of Challenge Group. Two-thirds of the company’s business is in the vertical sector, such as live animals, automotive, aerospace, artwork, temperature-controlled cargo, valuables and dangerous goods, where the Group is a recognized business partner. “Overall, we expect the complex vertical to grow, and we anticipate that our proven expertise and known capabilities will gain us more market share. However, the most growth can be expected again in e-commerce.
Read: Air freight faces a difficult 2024
Therefore, the main challenges faced by Challenge Group internally are the strategic expansion of the fleet which in turn will enable the addition of new markets and new destinations tailored to customer requirements. A new digital sales channel and sustainability initiatives are planned to support and enhance the overall customer experience.
At the same time, the group will deal with offshore industry challenges caused by global geopolitical uncertainty and a volatile economy. However, concrete plans for 2024 include: a new hangar and maintenance station for Challenge Technic, and a few new destinations will be opening soon, thanks to recent additions to the Challenge Group fleet, and Challenge Logistics’ investment in new technology such as the Project44 tool, which provides visibility And seamless transparency for customers, electric cars on slopes, electric tractors and the GPU are coming to tackle the challenge in Liège.
