Operator mix expands with new own-controlled networks

[caption id="attachment_413948" align="alignright" width="460"] iAero Airways is currently operating two 737-800BDSFs on a CMI basis for DHL. (Photo/DHL)[/caption] The number of carriers operating on a CMI-basis on behalf of e-commerce and/or express companies in the United States grew by two in the first half of the year, with Phoenix-headquartered iAero Airways and Minneapolis-based Sun Country Airlines becoming the second and third U.S.-based 737-800Fs operators, respectively. In early May, DHL added iAero as a new CMI operator in the U.S. The carrier is now flying two 737-800BDSFs (30498 and 28619) on a CMI basis for DHL Express to cities including: Cincinnati (CVG), Minneapolis (MSP), Los Angeles (LAX), Phoenix (PHX), and Reno (RNO). Sun Country followed shortly after iAero with new CMI operations for Amazon, operating a 737-800BCF (32348) leased from GECAS between Tampa (TPA) and CVG. Since then, Sun Country has already put into service two more 737-800BCFs (32579 and 32601) for the e-tailer, flying to Ontario (ONT), Fort Worth (AFW), and San Juan (SJU). The airline is quickly ramping up its CMI flying for Amazon, with three more units (29947, 32577 and 32607) joining the fleet shortly. Although iAero and Sun Country are relatively small players in the U.S. market and are new to CMI freighter operations, both have all-737 fleets and plenty of experience with the platform. Rapid growth of domestic and cross-border express fueled by business-to-consumer volumes is creating opportunities for new operators not only in the U.S., but globally. [caption id="attachment_413946" align="alignleft" width="380"] A TU-204C operated by Aviastar-TU. Photo/Cainiao[/caption] While the scale of CMI and ACMI operations on behalf of DHL and Amazon own-controlled network currently has no parallel, it’s important to note that retailers in China are increasingly exercising control over airfreight capacity. Express and e-commerce logistics operations elsewhere this year have demonstrated the potential for new players to enter the fold. Alibaba continues to build out its blueprint for a global logistics network through its Cainiao subsidiary. Cainiao is developing six global logistics hubs for Alibaba’s Electronic World Trade Platform (eWTP) with nodes in Dubai, Hangzhou, Hong Kong, Kuala Lumpur, Liege and Moscow. The operation is currently reliant on chartered capacity provided by a mix of express and scheduled all-cargo carriers, and although there are fewer spokes in the network, intra-hub flight activity is picking up. [caption id="attachment_413945" align="alignright" width="400"] A Cainiao-chartered 757-200PCF operated by YTO Cargo Airlines. Photo/Cainiao[/caption] In March, Cainiao added flights five times per week between Hangzhou (HGH) and Kuala Lumpur (KUL) utilizing a 757-200PCF operated by YTO Cargo Airlines, complementing existing daily flights between HGH and Moscow (VKO) with TU-204Cs operated by Aviastar-TU. As connections between the gateways grow, Cainiao has made clear that growing cross-border volumes will create opportunities to partner with new operators. Another retailer with visibility in the skies is JD.com , which continues to pilot long-term charters. In May, the logistics arm began chartering a 737-300F to improve its parcel delivery services across the country. The aircraft (27518, ex-Air China) has begun flying between Shenzhen (SZX) and Wuxi (WUX), operated by Zhejiang Loong Airlines (or Loong Air ). JD, which plans to launch another flight between WUX and Tianjin (TSN) in the next step, has partnerships with various carriers, including Air China, China Southern and China Eastern Airlines. However, the Loong Air aircraft is the only dedicated aircraft the company is chartering for an own-controlled freighter network at this time, after Tianjin Air Cargo stopped flying dedicated flights for JD in 2019. [caption id="attachment_413840" align="alignleft" width="430"] Loong Air is flying a 737-300F chartered by JD.com. (Photo/JD)[/caption] Sources familiar with JD’s logistics plans indicate the retailer is considering expansion of its own-controlled network and is exploring a variety of options, including ACMI, CMI or even the launch of its own airline.

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