Cargo Facts
SUBSCRIBE
  • NEWS
  • DATA
  • MULTIMEDIA
  • MAGAZINE
    • Issue Archive
    • Weekly Update
  • EVENTS
  • CONSULTING
Thursday, January 28, 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

Fleet changes for Air China Cargo?

David Harris by David Harris
August 17, 2012
in News Archives
Share on FacebookShare on TwitterShare on LinkedIn

Hong Kong-based Cathay Pacific Airways, which reported second-quarter results dragged down by falling air freight demand and a US$39 million loss from its AIR CHINA CARGO (ACC) joint venture, is reviewing fleet options at the jv.

Air China Cargo, the former cargo arm of Air China and now an Air China/Cathay joint venture, currently operates an 11-unit 747-400 freighter fleet, made up of six -400BCFs, three -400Fs and two -400BDSFs. The carrier has reported year-over-year increases in traffic in recent months, but, according to Cathay CEO John Slosar, the fleet is a problem in an era of high fuel costs.

“Old, fuel-inefficient airplanes is a tough business model,” he said in discussing the second half results, adding, “we’ll have to look at that to see what is the right way forward in terms of the fleet.”

The problem, of course, is that freighters that were true profit-generating machines when fuel was cheap can become loss-makers when fuel hits $3 per gallon and their age pushes up maintenance costs. Add in competition from belly-space on the current generation of long-range widebody passenger aircraft, from much more efficient twin-jet freighters like the 777F, and from payload monsters like the 747-8F, and it is increasingly difficult to operate freighter-converted 747-400s profitably. 

Cathay has begun the process of modernizing its own main-deck freight operations, with the addition of six 747-8Fs and retirement of 747-400BCFs. It also has four more 747-8Fs and eight 777Fs on firm order, but how the Air China Cargo Fleet will be made competitive is unknown at this point, Perhaps the recent increases in demand (ACC’s traffic was up 10% in July) will take away some of the urgency, but it sounds as if jv partner Cathay will push for change.

Today’s blog is expanded from the current issue of Cargo Facts Update. Those of you who do not already subscribe to the the monthly printed Cargo Facts newsletter, and its companion the weekly emailed Cargo Facts Update, can click here for more information.

 

Previous Post

Africa First – Ethiopian’s first 787

Next Post

Get Smart at the ACMG Workshop at Cargo Facts 2012

Related Posts

Atlas says Southern to begin flying 2 Amazon 737-800Fs this month
Freighter Aircraft

BlackRock ups shares in Atlas Air as institutional investors warm up to airfreight

January 27, 2021
Will 747s resurface in widebody conversion space led by 767s?
Freighter Conversions

Could 747s resurface in widebody conversion space led by 767s?

January 20, 2021
Pivot to cargo insulates Taiwan's combination carriers
Capacity & Demand

Pivot to cargo insulates Taiwan’s combination carriers

January 19, 2021
Next Post

Get Smart at the ACMG Workshop at Cargo Facts 2012

Leave a Reply Cancel reply

Your email address will not be published.

Get Latest Issue

CARGO FACTS CONSULTING

Maltese startup looks to 737-400Fs for launch

How to choose a jet freighter: CFC recommendations

January 26, 2021
DHL vaccines

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

December 18, 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