In less than two decades, Challenge Group control owner and founder Offer Gilboa has gone from a textile entrepreneur to a majority stakeholder at a unique international operation that covers airfreight, cargo handling, road feeder operations, maintenance and more. “I haven’t grown up in this industry.

I was more of a client for many years dealing with clothing, manufacturing in China and elsewhere when I had the opportunity to buy a very small cargo airline that needed to be resurrected,” Gilboa explained.

But from the outset, the industry threw up trials and tribulations for the company, as Gilboa and his partner, Captain Eshel Heffetz, found themselves with only one aircraft flying – an old 747-200, which had four weeks to go before its heavy maintenance check. This moment marked the start of what would ultimately evolve into Challenge Group, as they realised the importance of a comprehensive internal operation covering all elements of the industry, from maintenance to handling. From 2014, the partners embarked on global growth strategy.

With the establishment of the Challenge Group, its headquarters and management in Malta and its logistics hub in Belgium, it grew its fleet, updated Aircraft models, secured aircraft certificates across Europe, in Belgium, Israel and Malta, and enhanced its operations by adding talent across the globe to very professional and dedicated people that have been working in the group for years.

“The best example is the CEO who has been leading the group successfully in the past years, Yossi Shoukroun, who has filled various positions in the group over the past 20 years. “Coming from outside of the industry, it was initially perceived as a disadvantage but was actually an advantage because I wasn’t hooked up on any preconceived ideas.

“Our only focus was that service should be done in the most efficient way, and that’s what we told the team – We must understand the needs of the customer down to the final details and, sometimes, understand it even more than the customer does.

“From my background, they used to say retail is detail and I took that approach to our business, mastering the details of the verticals across the whole supply chain, trucking, handling, and flying goods. My partner brought a similar ability to master the details together with immense engineering and aviation experience.

“You must have very good discipline after having built up detailed instructions and procedures. You must look for people who have that passion and are not afraid of creating challenging missions and, at the same time, have the will and interest to study the utmost fine details. Dedicated, detailed, and mission-oriented”.

Comprehensive approach

Every business must carve out a special niche to remain unique. Without this distinction, it risks blending into the commodity market, where business can be easily lost. With that in mind, Challenge Group has grown into a multi-pronged entity through its various divisions: Challenge Airlines, Challenge Air Cargo, Challenge Aviation, Challenge Handling, Challenge Logistics, and Challenge Technic. This comprehensive approach not only supports Challenge Group’s desire to deliver end-to-end solutions but also provides a reliable, one-stop shop for customers. “We realised that, if we stay small, it will take us nowhere, so we came up with the conclusion that we have to go global and look for purpose as a company through a unique selling point,” Gilboa stated. “We asked ourselves, ‘What will differentiate us from the rest of the world and decided to go for the most difficult area – focusing on the most complicated cargo with a commitment to deliver door-to-door. “My team’s eyes sparkle when something is not ordinary, when there is a real mission that is unique and maybe has never been done before. So, we came up with the slogan – “Challenge Accepted – which is reflective of how we treat missions.”

Global presence

The entire airfreight industry saw an opportunity during the pandemic, as the world realised the critical role of dedicated cargo airlines in the global economy. With its strategy having been mapped out in advance, Challenge Group found itself prepared for this moment, meeting the growth, utilising its positioning and connecting with business opportunities that emerged during and after that disruption. “Our three AOCs provide an advantage through flight rights,” Gilboa outlined.

“Many people don’t realise the importance of flight rights and how difficult it is to manoeuvre the world without having many flight rights. “It’s not too dissimilar to a person who has a few passports and can use whichever he needs for the destination he wants to travel to, so that’s a big advantage to the group and allows us to create this global network.

“The importance of being global is the ability to understand the world and being able to react to what is changing in the world. You can’t do that if you don’t have your eyes, ears and hands in multiple locations and the ability to move as and when needed.”

Industry trends

There has been a shift in the importance of using dedicated cargo companies within the freight industry. While 50 percent of air cargo is still moved via passenger aircraft, this is not seen as reliable as utilising carriers focused on freight operations. “15 years ago, there was talk about who would need dedicated cargo airlines or would we need them at all because there were so many widebodies coming to the market with a lot of capacity that would eat up the market. We now know that’s not the case,” Gilboa explained.

“The demand is just growing as the world has become global and this will not diminish. There are pockets of retreating local economies, more protected economies but I don’t think this will hold. Our industry will continue to be the backbone of the global economy.”

Gilboa’s focus, as with many in the industry is on how to ensure a more sustainable sector, cutting back on fuel consumption and replacing it with greener sources. However, he’s clear that it is “unfortunately 25 years away at best” and “will be the challenge of the next generation.”

Turning to more futuristic endeavours, the next area of interest might be at a higher altitude: “It’s not on the plan yet but, already, people are talking about cargo in space. That could be a nice achievement.” “More to where we are right now, we’re nearing 10 aircraft and I believe that we will be close to 15 in two to three years time, all focusing on complex cargo.”