Cargo Chat: Challenge Group’s Shoukroun talks rebranding, aircraft and growth plans

Battling tight capacity, supply chain disruptions and strained networks, carriers have been looking to diversify and build out their fleets in anticipation of future growth. Israel-based Challenge Airlines IL, formerly CAL Cargo, is one of many carriers looking to diversify and strengthen its fleet . In line with its rebrand, Challenge Airlines IL intends to move its headquarters to a new building in Tel Aviv. The carrier currently operates 747 freighter services to Europe, the U.S., Far East and the United Arab Emirates, according to a recent release. Challenge Airlines also intends to add four converted 767-300BDSFs and four converted 777-300ERSFs to its fleet. Air Cargo World spoke with Challenge Group Chief Executive Yossi Shoukroun about the recent rebrand, fleet expansions and future growth plans amid the ever-changing global airfreight market. [caption id="attachment_57066019" align="alignright" width="350"] Yossi Shoukroun, CEO of Challenge Group. Photo/Challenge Group[/caption] Air Cargo World: CAL Cargo recently rebranded to Challenge Airlines IL. Can we expect any network expansions or changes? Yossi Shoukroun: Our strategy is to first strengthen the current program. Our plan is not only to increase our capacity by three times — adding respectively four 767-300BDSFs and four 777-300ERSFFs to our current fleet — but to expand globally … This is one of the reasons why we are looking to build our own hub in North America: We want to own the full supply process. Challenge is not looking at the main, traditional hubs such as Chicago (ORD), New York (JFK), Miami (MIA) or Los Angeles (LAX), but secondary gateways. ACW : Are there new regions that Challenge Airlines IL aims to tap into? YS : In the short term, we will continue to strengthen our presence in the U.S., Middle East and Far East markets. But when it comes to long-term, we are willing to export our success story of a centralized European hub and strategic partnerships to complement our network on other continents as well, as Africa, Indian subcontinent and South America. ACW : Challenge Airlines IL has relied on its fleet of two 747s. How is that aircraft type serving you today, and what encouraged the conversion of two 767s? Are there other widebody freighter types you are interested in adding to your fleet? YS : The 747 is an excellent aircraft when it comes to specific commodities, but we have chosen the 767 model for sustainability reasons. It is a twin-engine aircraft, less polluting and more efficient in terms of performance. This model will be deployed in the short to medium term to meet the demand of business partners willing to buy more than just air cargo capacity from us and with a specific activity on specific trade lanes. The 767-300BDSF will replace the 747-400F on short-haul flights, mainly between the EU and U.S. East Coast and between the EU and the Middle East, freeing up the 747-400F for long-haul flights, allowing us to increase our frequencies to the destinations we already serve and introduce new destinations with the 747-400F. We will use the 767-300BDSF to increase our frequencies, offering a better service to our customers on our existing routes and to introduce new destinations in the MEA, Africa and India. ACW : What can you share about current cargo traffic trends to and from Tel Aviv (TLV)? What routes are in demand? YS : Israel imports more than it exports, in terms of trade balance. As elsewhere, there has been an increase in inbound e-commerce and perishable goods (e.g. salmon), but steady growth in other sectors as well. Exports of perishables remain strong, but at the same time we are beginning to see growth in high tech and valuables. As far as exports are concerned, the main routes served are those to the United States, the EU, which is our second-largest trading partner, India and the Far East, which is on the rise. As regards to imports, the main routes are the United States, the EU and China.

Cargo Chat: Challenge Group’s Shoukroun talks rebranding, aircraft and growth plans

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