Podcast: An inside look at startup 7Air’s operational launch

Robert Luke
Hello and welcome to another episode of Cargo Facts Connect, the podcast of Cargo Facts, the publication of record for the air cargo and freighter aircraft industries for over 40 years. I’m Senior Associate Editor Robert Luke, and it’s Friday the twenty-second of August. Joining me today are two key members of the executive team of Miami-based Seven Air Cargo. I have Jose Rodriguez, Chairman and Managing Partner at Seven Air, and also Carlos Cock, Vice President of Commercial Operations and Partner at Seven Air. Gentlemen, thank you for joining us, today. We love having you and welcome back.

Jose Rodriguez
Thank you, Robert, for having us.

Carlos Cock
Thank you Robert for the invite and always covering our story. So appreciate it.

Robert Luke
You’re welcome, gentlemen. It’s our sincere pleasure. I just want to start off asking as we go forward, now that you have the operation in full swing, how much have you learned as a team since 7 Air received its Part 21 approval in February and officially began to provide air Cargo service within the region.

Carlos Cock
Well, absolutely. That’s a great question, Robert. We are amazed every day of how much we have learned. We thought that, you know, we knew a lot from the airline industry, but this is a whole new world to us. So I actually being able to jump in and assist the day-to-day operations. And coordinating and making sure, you know, things are done properly and running smoothly has been a great eye opener for us. I think Jose can attest to that as well.

Jose Rodriguez
Yeah, it’s definitely been a learning curve getting into the airline industry and the cargo industry. Since we’re kind of running them side by side, you know the good thing that we have is that we’ve been able to tackle the different objectives through the through me and Carlos. Most of the days we divide our our attention where I’ll handle the maintenance side of things and Carlos will head off on the operational side of things to make sure that we have fluidity and and efficiency across the board. So we we’ve been able luckily we’ve been blessed to have a great team at 7 Air and and and we see the success you know continuing to rise and the flights continuing to add on on our schedule. So it’s it’s looking really good for us.

Robert Luke
Thank you, Carlos and Jose for sharing. Understanding that you all really come from the maintenance side of it, where your expertise really lies, what are some of the obvious differences that you’ve noticed? When it comes to running an airline versus what you’re usually accustomed to doing as an MRO provider.

Jose Rodriguez
Well, since since we originally come with the with the MRO and maintenance background, we’ve always you know had to deal with customers and and schedule particularities keeping the aircrafts on time reliability. And always trying to you know be there for our customer and now we are also a customer of our of our of ourselves. So we have extreme aviation handling a majority of the maintenance for the for the airline and it’s it’s allowed us to to really see. How important the operational side of things are to make sure that communication is key, communication is a fluid, that everybody’s on the same page regarding what we’re doing and it’s actually allowed us to make changes on the MRO side that cater better to our customers.

Robert Luke
Very interesting. In regards to those unexpected challenges or hurdles that you’re overcoming as you encounter them, how important was it for you to choose the key members not only of your executive team that’s looking forward, but your day-to-day managers that you have in place to ensure you not only maintain compliance, but you are able to establish and consistently have operational efficiency with 7Air?

Carlos Cock
Well, Robert, I’ll tell you the key to this whole operation and I think the TXG group as a whole and the four verticals underneath it is the team that we’ve been able to build, you know, with Amos, Jose and myself.
On top, guiding the executives down below us and all the way down to, you know, mid and lower management, we’ve been able to put together a a team of savvy industry professionals all the way down to the cargo side as well now.
So that that has been key for us, the the team building that we have been undergoing for the past five years, not only on the maintenance side, but being able to bring some of those young rising stars alongside us and at the same time, you know, lift them to the best of their potential.
Professionally and personally has been key. And I think that’s what’s really made the organization stronger.

Jose Rodriguez
Yeah. And to add a little bit more to what Carlos said, you know, it’s it’s a process where we have to make sure that the entire executive team understands the vision.
That they buy into the vision that we have put in front of them. We we we’re running this extremely tight ship leading the the the different executives knowing that you know we we we don’t run this business the way that most corporate entities run where you’re just a corporate number on a you know on. Spreadsheet we we have team building exercises. We make sure that everybody is aware of where we want to be. We we we we have compensation compensation tactics that allow them to to see that once you know we are doing what we’re supposed to be doing and we’re reaching.
The the targets and the KPIs that that we have set in place that they get to you know take advantage of those compensation benefits along with the team. So it’s it’s really getting an entire team to buy into the vision and execute at a very high level and you know the team that we chose has been hand-picked every step of the way. They’ve been groomed to know exactly how we like to operate and they’ve adjusted very well and and we’re seeing the success of it now thanks to that hand-picked selection.

Robert Luke
As far as establishing the leadership and of course with you all wearing multiple hats with the TXG parent group, 7 Air and now you’re also doing the engine MRO repair shop that you have just recently opened in Davies, FL. How important was it for you establishing 7 airs, a new entrant into the American sector for narrow body freight operations? Was it to have a good mix of seasoned experience versus new rising up and coming talent? And how do you create the chemistry where you know as leaders of multiple verticals you can kind of delegate as well as still have a hands on involvement to make those critical decisions you need going forward?

Jose Rodriguez
Yeah, so having the airline in the narrow body sector it it allows us to really manage the cash flow of things because it’s not an expensive aircraft to operate per se compared to other aircrafts. So it’s it’s basically like allowing us to enter in a smaller footprint, getting us adjusted to the market. So we can target the regions that we’re targeting, which is Central America, the Northern South American routes and the Caribbean. And it’ll allow us to continue to grow to the point where we add the wide-body aircrafts in the next two to three years and and have all the processes and procedures in place to ensure our success. Having these key members and and like you said, we we have seasoned veterans that have been around and have a vast amount of experience that we as the executive team on the top rely on for our own learning experience. But then we also have rising stars that we have hand selected that show the eagerness to grow and the the the want to to be an executive. And we’re allowing these people to be groomed up so that they can step into these roles that are required by the different entities will make it what makes us extremely special is that we have several different resources that all of the entities can take advantage of amongst the other entities. So when it comes to like per se, when we’re looking at an aircraft to add into our fleet, you know on the MRO side we have plenty of experts on aircraft inspections and record inspections, record review. So we get to bounce all of these services that we already offer off of the different entities and it really does create a better synergy and keeps things kind of more efficient and and more streamlined.

Carlos Cock
I think while we were building the team and bringing in top notch industry savvy guys such as Mike Mendez on the airline side and also like Jose said, pairing them up with younger rising stars and giving them the wind below their wings take off and soar like Juan Pantoja on our operations side has been a perfect mix. So it’s creating the culture of you know we have industry savvy professionals that are willing not only to run the day-to-day operations, but also bring the young rising stars underneath their wings and kind of hand up that baton of, all right, you’re going to learn from me now, stick with me and we’re going to do this together. So giving them that experience to create that full all around team has been key to our operations.

Robert Luke
As we expand on the operational footprint of Seven Air, which we’ve seen some significant milestones, you just recently started operating out of Cuba and you just completed your inaugural ceremony at Miami’s International there. Having a hub in Miami is definitely a no-brainer for the dedicated freight service you provide. But explain a little bit for me on why you chose Santo Domingo in the region and markets that you want to serve versus like a San Juan or even expanding out a little bit further to say maybe I would say Colombia or just kind of putting your footprint directly in that South American content where a lot of movement and traffic feeding into Miami is taking place.

Jose Rodriguez
So. Robert, I’m, I’m a man of faith and I believe that God works in mysterious ways and coincidentally as we were entering the market post certification where we originally targeted Central America as as the first developed routes for seven-air. We had the the the very fortunate event of having one of the the main one of the Cargo Airlines pulled out of Miami and it left a gaping hole in the Santo Domingo market that created an immediate need that we were able to fill rather quickly.
So it it, it, it’s really the reason why we started with the Santo Domingo market and then we’ve since then established routes into San Juan. Sometimes we piggyback from San Juan over to Santo Domingo and pick up freight going northbound. So we’re doing about four rotations to San Juan now. We’ve added a Kingston, Jamaica to the list. We have the Havana flights going about 10 a week now. We we’re starting Guatemala operations next week. We start San Jose operations next week also. And then on the 10th of September we start flying into Antigua. Our goal is to reach to these Caribbean islands that are in a severe need for dedicated, reliable and on time scheduled Cargo delivery and we’re we’re doing this very efficiently. And and I think that’s the the reason why we’re seeing so much success because we we have every, every part of the of the airline industry covered. So we make sure that the airplanes are green. We make sure that we’re attacking each aircraft and doing the preventative maintenance that needs to be done in order for the airplanes to operate and and require minimal maintenance. Our operational team sees the routes that we’re planning. We we give them more than enough time to plan ahead, get the permits and get everything entered into our system so that we can do these flights efficiently and on time. So we’re we’re seeing great success in all sectors due to the planning that we’re putting in beforehand.

Robert Luke
7 air has now carried more than 2,000,000 kilograms of cargo in July. Do you expect that to continue trending upward not only into August, but through the rest of the year as you are establishing your market footprint and getting your operational rhythm, so to speak, with the airline and what you’re providing to the region.

Carlos Cock
Yeah, Robert, absolutely. Like Jose mentioned, you know, we started officially flying in May. So between May and June, we were able to dedicate both of our aircraft to the Santo Domingo route, which was our starter and we’re able to move 1,000,000 kilos of freight on the first month. Then July came around, we started adding destinations like Cuba. Our numbers went to 2 million for that month. Now we’re in August and we are projecting to hit the three million mark now for the month of August, our growth projection. With our our scheduled flights, which will be close to 30 per week now by the beginning of September, we’re looking at hitting 4 million in September and 5 million definitely constantly by the end of the year with our 4 aircraft that we have projected by the end of the year. So the the growth has been there, the the pattern and the projections have been realized and I think we’re just on our way to opening up many more markets.

Robert Luke
That’s great. I’m going to just piggyback off of the Miami hub question that I asked earlier and just kind of say in in very few words, how much does Seven Air benefit from having its FESDO in Atlanta versus having the Miami FESDO to carry out your operations within the region.

Jose Rodriguez
Well, um. This is a good, very good question, Robert. Yeah. So we actually have the Atlanta Fesdo today in our office. We actually were just with our our principals about 30 minutes ago and they continue to compliment us, on having a very tight, very professional and organize operation. They’re extremely impressed with all the processes and procedures we have in place. I I I can’t say that having either FIS though either Atlanta or or the South Florida FIS 19 as our our principles or our.
Our authority would be much different. We have a great relationship with with every FAA member that we’ve ever encountered on the extreme aviation side. You know we we’re governed by FISDO 19 and we have a great relationship with with that FAA team as well. So I think you know it it it all comes to the culture that we instilled making sure we do things right and that that will portray to the to the government and the governing agencies that we are serious about making sure that we minimize any type of discrepancies or any deficiencies that the airline may have and that we are a serious operator. So I I think that you know as as long as we continue to do what we’re doing now, the relationship will be good regardless of what FAA we’re dealing with.

Robert Luke
Well said, Jose. From what you’ve experienced before, Jose and Carlos, is seven air disrupting the common theme that there’s no market for narrow body service globally?
Or is it really the strategy and operational game plan that Seven Air’s executive team has put together that allows you to defy the odds right now?

Carlos Cock
I think I’ll go first. The market from our initial inception, we had identified multiple issues with the current operators. Now mind you, this is the region that has traditionally for the past 15 years been operated by 767s. And all of these operators had their way set on island hopping as we call it to serve these these markets. The problem with that and we saw this coming from about two years ago is that we knew the cost of operating 767s was becoming quite large and the cycle count you know on the engine and reserves that the airplane undertakes is creeping up on everybody. So it was not going to be feasible to continue operating those aircraft in. The type and manner and routes that the regular operators were doing it. That’s when we decided on our airplane and we thought it was going to be perfect for the markets because of the size and the loads that it carries. It does not have to undertake island hopping and rather just serve, you know, the market on a direct basis per destination.

Jose Rodriguez
Yeah, I think we’re pretty much aligned on on that perspective. One thing that we do have that is in our benefit is we we we get to control a lot of our costs because we have other vertically integrated companies within the same building parent company. So you know where other people would have to send their engine out to to get service. We can manage all of that in-house. We can own our own engines and have them as spares, pass them through our own shop, buy them as cores. We can manage our own seat check schedules, have the manpower allocated to cover our our aircraft maintenance requirements. So you know, we we really control the entire path of our destiny and we do it very efficiently. So I think that only leads to success and reaching out to these particular Caribbean islands. On a direct basis, being able to serve them with our 20 ton aircraft, it’s it’s I think it’s a it’s a key to success. It’s something that may be overlooked in the industry, but I think the industry has to meet with the individual governing agencies of those of those particular countries and those islands. Because there’s a demand, there’s a need and there’s not a provider that’s giving reliable service. So we’re going to step into that and and really make a name for ourselves in that market.

Carlos Cock
Yeah, sort of creating our own niche.

Robert Luke
Yes, I see it forming as you guys continue to evolve your operations. Two-part final question I just want to add in here. You now have 3 737800 FS Amos, Eliza and Papa. One. I’m curious to know what the name of the 4th one is going to be when you finally take delivery and bring it into the fleet and as you examine your market potential in the regions you want to serve, when will you be implementing the next phase of growth for 7 Air and what does that look like and does it possibly include another freighter type that you will be incorporating into your operation?

Carlos Cock
So Robert, on the on the 4th aircraft name, we kind of have, we’ve been planning it and it will be released as soon as we’re ready. I don’t want to spoil surprise just yet, but we have looked at several options and I think the the market in the industry will be pleasantly surprised with the name that we’ve chosen.

Jose Rodriguez
And just for context, the first aircraft I chose the name, the second aircraft Amos chose the name. The third aircraft we chose the name, which we’ll be releasing on our social media platforms, the stories behind each of the names that we’ve chosen. And the third aircraft was named due to one of our our our investors and and one of the gentlemen that had really helped us, along the course of our way with especially with 7 air. So we dedicated that aircraft to him and the 4th one Carlos is in charge of naming. So we’re we’re all waiting for for for Carlos to to Bless us with his surprise.

Robert Luke
Yes, unfold the gift, Carlos. Unfold the gift.

Carlos Cock
It’s coming. It’s coming.

Jose Rodriguez
But we do have the 4th aircraft arriving in Opa Locka next week that that would be inducted into our certificate sometime in the middle of September. We plan on growing the fleet to 8737800 freighters. By the end of 2026, God willing. And then we will start looking at the wide body aircrafts possibility and they will not be 767 aircrafts.

Robert Luke
I kind of thought that you wouldn’t take that approach just from your response on the seven sixes and how you’re establishing a stronger presence without utilizing them within the region. I won’t. I promise I won’t try to try to find out a little bit more about what you’re considering. But I’m probably able to guess on my own what you’re what direction you’re heading in, but that’s neither here nor there. Guys, I do want to just sincerely thank you for your time first and foremost, but secondly allowing us to sneak a look into or get a listen in on what’s going on like a fly on the wall within the seven Air Foundations, as you guys continue to expand your presence, build your market and let the world know that you guys are here to stay for a long time. So thank you once again for taking the time to give us some more insight into what’s happened since you’ve gotten your FAA certification in February and started officially operating in May. Thank you very much for supporting us in that realm and we look forward to more good things coming down the pipe from your organization.

Carlos Cock
Thank you, Robert, for always inviting us, and to share and give us, the platform to voice, you know, our growth and our projections to to the market. You’ve always been a good partner. Thank you.

Jose Rodriguez
Yeah, Robert, you’ve always been a good supporter of of our group entirely and so thank you for for the invite and and we look forward to the next one.

Robert Luke
Indeed, and until Cargo facts symposium. Jose I may not see you but definitely Carlos and Mike Mendez, we look forward to seeing some delegates from the team and hanging out for a little bit in Nashville. Not wearing any cowboy hats though, I promise you that.

Robert Luke
That was Carlos Cock and Jose Rodriguez of Seven Air Cargo. And that’s all the time we have today. For more coverage of the freighter aircraft and AAM market, visit cargofacts.com. Thank you very much for tuning in, and join us again next time.