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Jade Cargo. Is There So Much Market For Cargo?  
User currently offlineF.pier From Italy, joined Aug 2000, 1524 posts, RR: 9
Posted (8 years 2 months 2 days 8 hours ago) and read 4093 times:

There are a lot of cargo airlines in China and they are growing.
Do you think there is enough market room for all these carriers?

9 replies: All unread, jump to last
 
User currently offlineN757KW From United States of America, joined Sep 2003, 435 posts, RR: 0
Reply 1, posted (8 years 2 months 2 days 8 hours ago) and read 4045 times:

This is for the U.S. market, which is what I am familiar with.

For exports, yes. On my carrier the flights from China are packed with cargo, the rates are decent. The return to China is the hard part from the U.S. There is so much uplift to Asia that the rates are horrible. Even with the low rates, the flights do not go out full.

Just for ATL, there are 4 Asian Carriers and 1 U.S. carrier operating to Asia direct offering over 28 flights a week. That is a lot of uplift they we are all trying to sell space on.

N757KW



"What we've got here, is failure to communicate." from Cool Hand Luke
User currently offlineAirWillie6475 From United States of America, joined Jan 2005, 2448 posts, RR: 1
Reply 2, posted (8 years 2 months 1 day 23 hours ago) and read 3932 times:

YES! China has a booming cargo market. Fedex and UPS for example have chosen the A380 for China runs. I also read that Fedex is going to expand their Asia hub to one of the Chinese major cities, Guangzhou near Hong Kong. Right now their Asia ops are based at Subic Bay, Philippines.

User currently offlineIL76 From Netherlands, joined Jan 2004, 2237 posts, RR: 48
Reply 3, posted (8 years 2 months 1 day 14 hours ago) and read 3821 times:

Great Wall Airlines just suspended operations... Carrying missile parts to Iran? Hmm...
http://www.airliners.net/discussions...general_aviation/read.main/2949337
Players come, players go...


User currently offlineOyKIE From Norway, joined Jan 2006, 2754 posts, RR: 4
Reply 4, posted (8 years 2 months 1 day 14 hours ago) and read 3798 times:

Quoting F.pier (Thread starter):
There are a lot of cargo airlines in China and they are growing.
Do you think there is enough market room for all these carriers?

You ask a question that needs to highlight allot of aspects. The way I look upon your question could be broken up to more questions.

Will Jade Cargo grow successfully at that high rate that they will acquire planes?

Is the market need that desperate for new routes?

I guess the question to all this is - YES!

Jade is owned partially by Lufthansa and they have sent a senior management team to China to see that the company develops according to Lufthansa standards. It is also expected that Jade will be a member og Star Alliance.



Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
User currently onlinePanHAM From Germany, joined May 2005, 9532 posts, RR: 31
Reply 5, posted (8 years 2 months 1 day 14 hours ago) and read 3772 times:

Quoting OyKIE (Reply 4):
o expected that Jade will be a member og Star Alliance.

Star Alliance is for passengers. Jade has no reason to join * as long as they do not intend to carry pax. The equivalent would be WOW, possible they join that formation which includes JAL, otherwise affiliated with One World.

And to answer the question - yes. They have a strong business case and co oeration with LH is expected, they can also operate routes from China which LH could not. Plus, Jade can produce much cheaper than LH can.



E's passed on! That parrot is no more! He has ceased to be! E's expired and gone to meet 'is maker!
User currently offlineDABZF From Germany, joined Mar 2004, 1201 posts, RR: 0
Reply 6, posted (8 years 2 months 1 day 11 hours ago) and read 3706 times:

China is THE market at the moment. Lot of European (don't know about USrnand others) companies are moving and have already moved theirrnproductions to China where the labour costs are only fraction of thosernin Europe.

Rates out of Asia especially from China are highestrnof all! Even if you don't have much return freight to China it willrndefinitely be profitable - especially for Chinese operators with veryrnlow labour costs.

Quoting OyKIE (Reply 4):
Jade is owned partially by Lufthansa

Lufthansa Cargo, to be exact, with 25% share



I like driving backwards in the fog cause it doesn't remind me of anything - Chris Cornell
User currently offlineAvianca From Venezuela, joined Jan 2005, 5934 posts, RR: 40
Reply 7, posted (8 years 2 months 1 day 3 hours ago) and read 3592 times:

Quoting N757KW (Reply 1):
For exports, yes. On my carrier the flights from China are packed with cargo, the rates are decent. The return to China is the hard part from the U.S. There is so much uplift to Asia that the rates are horrible. Even with the low rates, the flights do not go out full.

same problem ex Europe, often the airlines are only charging fuel and security surcharges an 0,00 euro per kg for the rate.



Colombia es el Mundo Y el Mundo es Colombia
User currently offlineN754PR From , joined Dec 1969, posts, RR:
Reply 8, posted (8 years 2 months 1 day 3 hours ago) and read 3579 times:

Answer is simple..... YES. As most of you know almost everything these days is made in China so the freight is just going to increase.

User currently offlineDALCA From Netherlands, joined Aug 2006, 535 posts, RR: 0
Reply 9, posted (8 years 2 months 1 day 2 hours ago) and read 3555 times:

The initial flights of Jade don't only go to Shenzen but also to Seoul out of AMS, via Shenzen. I myself work for Lufthansa Cargo in AMS and there is a huge market for it. Especially for the cargo coming from Asia to Europe, as mentioned before, hte market is not almost big enough. The flights from Asia to Europe almost cover 50% of the costs from Europe to Asia.
Once Jade starts adding more planes to thier fleet, look for them expanding in Europe, espacially southern Europe. Once the airline is established, it will be succesfull. Take a look at Dargonair Cargo for example.



Zanair flight, please hold on finals as we have to clear rhino's off the runway. Next flight KUL-FRA-AMS Flown in A319,A
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