Cargo Facts
SUBSCRIBE
  • NEWS
  • DATA
  • MULTIMEDIA
  • MAGAZINE
    • Issue Archive
    • Weekly Update
  • EVENTS
  • CONSULTING
Tuesday, January 19, 2021
Log In
No Result
View All Result
  • Aircraft Leasing
  • Capacity & Demand
  • Carriers
  • E-Commerce
  • Engines
  • Express
  • Freighter Aircraft
  • Freighter Conversions
Cargo Facts
  • NEWS
  • DATA
  • MULTIMEDIA
  • MAGAZINE
    • Issue Archive
    • Weekly Update
  • EVENTS
  • CONSULTING
Log In
No Result
View All Result
Cargo Facts
No Result
View All Result

A third hub for Cargolux?

Charles Kauffman by Charles Kauffman
June 15, 2016
in Carriers, News Archives, Strategy
Share on FacebookShare on TwitterShare on LinkedIn

600-Cargolux7478FtakingoffSHANGHAI – Speaking at the Air Cargo China event in Shanghai today, Cargolux CEO Dirk Reich hinted that his airline might move from its current dual-hub strategy to a triple-hub strategy, with the third hub located somewhere in the US.

Two years ago, when Luxembourg-based Cargolux added a second hub in the Chinese city of Zhengzhou, many in the air freight industry questioned the carrier’s chances for success. Zhengzhou might be a major high-tech manufacturing center, but it was not a global trade hub like Shanghai, Beijing, or Hong Kong. Offering charter service to Zhangzhou to pick up pallets of iPhones now and then was one thing, but a hub?

At the time, Cargolux did not have much choice. Establishing a hub in Zhengzhou was part of the agreement under which Henan Civil Aviation & Investment Co (HNCA, a financial vehicle of the Henan provincial government) took a 35% stake in the carrier. But fast-forward to the present, and it is Cargolux that is laughing. Mr. Reich said that just two years after launching its first flight between the Luxembourg and Zhengzhou hubs, Cargolux has now surpassed 100,000 tonnes on the route, with 50,000 tonnes carried in the last eight months alone. And, in addition to the seven weekly 747 freighter frequencies connecting Zhengzhou to Luxembourg, Cargolux operates a further seven frequencies from the Zhengzhou hub, serving Chicago, Milan (home of its Cargolux Italia subsidiary), Kuala Lumpur, and Singapore.

Of course, there is more to Cargolux’s focus on China than just the establishment of a second hub. As part of the stake sale agreement, Cargolux and HNCA have formed a new joint-venture all-cargo airline. The carrier, Cargolux China, which will be based in Zhengzhou, is expected to begin operation next year with three 747 freighters.

While service to Africa, Oceania, and Latin America may be added in the future, Cargolux China’s initial focus will be on the trans-Pacific trade lane. Mr. Reich said China-US routes would account for about 80% of the carrier’s business, with the remainder coming from intra-Asia traffic.

When asked if the Cargolux China would consider a different aircraft type, Mr. Reich quickly brushed the idea off, saying the airline would stick to what it knows, “and that’s 747s.” He added that aside from e-commerce-driven express delivery and integrator operations, he has yet to see a model for the profitable operation of smaller aircraft types. However, he did not discount the possibility of ACMI-leasing other aircraft for operation from the Zhengzhou hub if the need arose.

Cargolux China has not yet received regulatory approval for its proposed schedule, but routes applied for include:

  • Zhengzhou-Chicago-Mexico City-Guadalajara-Chicago- Zhengzhou
  • Zhengzhou-Mexico City-Guadalajara-Chicago- Zhengzhou
  • Zhengzhou-Columbus (Rickenbacker)-Chicago- Zhengzhou
  • Zhengzhou-Dallas/Ft. Worth-Los Angeles- Zhengzhou
  • Zhengzhou-Singapore-Melbourne-Singapore- Zhengzhou
  • Zhengzhou-Tokyo (NRT)-Seoul (ICN)- Zhengzhou
  • Zhengzhou-Ho Chi Minh City-Hanoi- Zhengzhou
  • Zhengzhou-Ho Chi Minh City-Dhaka- Zhengzhou
  • Zhengzhou-Dhaka- Zhengzhou

Turning back to Cargolux’s overall strategy, Mr. Reich showed a map of the world, saying: “If you look carefully, you can already see some future developments. We have Luxembourg as our European Hub, and we have a functioning and growing hub in Zhengzhou.” He then pointed to a circle drawn over the central US, and added, “but we still need something over here to realize our vision of becoming the global cargo carrier of choice.”

He did not provide a timeline for the addition of this potential third hub, or any clue about its location. Our guess would be Chicago (or possibly Columbus), but time will tell.

Tags: AsiaCargoluxCargolux ChinaChinaHNCAhubsStrategyZhenghzhou
Previous Post

How far can you go from Qatar?

Next Post

e-Atlas

Related Posts

AEI inductions highlight surging conversion demand
Freighter Conversions

AEI inductions highlight surging conversion demand

January 15, 2021
Freighter Aircraft

Weekly Wrap: Flurry of freighter orders in first weeks of 2021

January 15, 2021
Cargojet equity offering to grow 767 fleet, add 777 platform
Freighter Conversions

Cargojet to grow 767 fleet, add 777 platform

January 14, 2021
Next Post

e-Atlas

Leave a Reply Cancel reply

Your email address will not be published.

Get Latest Issue

CARGO FACTS CONSULTING

DHL vaccines

COVID-19 vaccine traffic to be ‘blip on the radar’

December 18, 2020
China-Europe rail freight surges

China-Europe rail freight surges

October 9, 2020
  • About Us
  • Help Center
  • Privacy Terms
  • ADA Compliance
  • Advertise

Follow Us

twitter twitter linkedin podcast

© 2021 Royal Media & Cargo Facts

No Result
View All Result
  • News
    • All News
    • Aircraft Leasing
    • Capacity & Demand
    • Carriers
    • E-Commerce
    • Engines
    • Express
    • Freighter Aircraft
    • Freighter Conversions
  • Data
  • Multimedia
  • Magazine
    • Issues Archive
    • Weekly Update
  • Events
  • Consulting
  • Subscribe
  • Log In / Account

© 2021 Royal Media & Cargo Facts

Go to mobile version