How is Magma Aviation adapting to the future of global trade and logistics?

As e-commerce takes off across the African continent and supply chain disruptions reshape traditional shipping lanes, cargo airlines are finding themselves at a turning point: evolve or be left in the dust. Responding to the challenge, Magma Aviation transformed its business model from a basic transport provider into a strategic air cargo specialist. With over a decade of experience in Africa, the company has already witnessed – and successfully adapted to – multiple shifts in global logistics.

“The air cargo industry can no longer focus solely on moving goods from point A to point B,” says Peter Kerins, CEO of Magma Aviation. “What clients need today is adaptability, foresight, and comprehensive partnerships to address increasingly time-sensitive, high-value shipments around the world”.

Building a flexible fleet for changing demand

Given the current geopolitical background, it’s quite remarkable to see just how robust the air cargo market has remained in its face. Case in point – compared to January 2024, the same month this year saw a 3.2% hike in total demand, marking the 18th consecutive month of growth. African airlines have been among the best performers last year, enjoying a whopping 8.5% rise in air cargo demand. And with investments in technology and infrastructure pouring in, the continent’s future looks bright.

Conscious of the fact that supply chains are evolving beyond simple linear models, the company made the farsighted decision to diversify its fleet. In 2024, Magma expanded its operational reach by adding narrow-body aircraft to work in tandem with its existing wide-body capacities.

“With supply chains becoming more unpredictable by the day, businesses are casting about for air cargo providers capable of keeping up with disruptions as they happen,” says Kerins. “Our fleet strategy now includes both wide- and narrow-body aircraft, which allows us to quickly adapt to changes in volumes, routes, and types of cargo – whether it’s a large charter or a regional flight with a tight deadline”.

Magma already has a strong presence in Africa, and its strong commercial ties in the Asia-EU and EU-US trade routes give it the flexibility it needs for adjusting to market changes. Although current trade tensions so far haven't noticeably affected its main network, Magma remains alert and ready to optimize routes through different gateways whenever the situation calls for it.

Digitizing for speed and transparency

The company’s strategy for adapting to market turmoil centers on technology. For instance, one of its standout initiatives concerns digitizing information on aircraft availability. This not only simplifies capacity requests for partners and freight forwarders but also smooths out the otherwise rocky booking process.

“We've made digitization a company-wide priority," notes Kerins. “Customers now expect more than just logistics – they want constant updates, industry insights, and easy access to important data. This is why a major aspect of our push for digitization is creating visibility and connection in a historically opaque industry”.

As part of meeting these expectations, Magma is also ratcheting up its activity on social media. In particular, the company has been sharing behind-the-scenes pictures, talking to customers in real time, and publishing content that’s actually useful to its customers and that reflects the way in which the industry is changing.

Some of the demand for effective air freight services comes down to the rise in popularity of e-commerce. This concerns not only giants like Amazon entering the market, but also regional players like Jumia, who are now seeking to scale their operations. “What’s needed right now is more reliable air cargo providers capable of quickly transporting upscale products – especially because more and more African consumers are turning to mobile shopping,” Kerins said.

Navigating regulatory complexities and African market dynamics

International regulations can be a real headache for global logistics providers working in several different jurisdictions. To make sure its operations don’t get disrupted by tiresome red tape, Magma has brought together an international team skilled in precisely these matters. One of the team’s main responsibilities is making sure the company remains compliant with:

• European environmental standards
• African overflight permissions
• Asian ground handling protocols
• and other regulations.

Another source of challenges and opportunities are the ongoing efforts of the African Continental Free Trade Area (AfCFTA) to promote trade among its 55 member countries by tearing down barriers and equalizing regulations. Major challenges include high operational costs, inadequate facilities at 50%+ of the continent’s airports, and sporadic political unrest that puts certain routes temporarily out of commission.

No less importantly, Africa’s efforts to improve its port infrastructure are gradually making sea freight competitive for non-perishables. For this reason, air cargo providers, if they want to stay in business, will be forced to put greater emphasis on the benefits of their value proposition for urgent deliveries.

Strategic expansion and long-term vision

In 2024, Magma Aviation took some bold steps to boost its presence on the world stage. They inked a multi-year deal with Worldwide Flight Services to improve freighter handling at Liege Airport, opened a brand-new headquarters in Dublin to tap into leasing opportunities, and set up an additional regional office in Dubai to enhance their commercial footprint in the East and explore new markets.

Kerins emphasizes, “All of these moves are in line with our long-standing engagement with the African market. Our intention going forward will be to maintain focus on creating a business that can withstand shocks while reliably serving our clients”. In other words, Magma is gearing up for the future, rather than limiting its vision to whatever it is doing today. “By building strong commercial relationships and having a deep grasp of local markets, we gain insights that help us navigate the ever-changing trade patterns,” Kerins explained.

As trade keeps evolving at a breakneck pace, Magma's 15 years of experience and dedication to flexibility equip the company to tackle the logistics challenges of tomorrow. All the while, they ensure that their clients receive the specialized service they rely on.