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Grandstar Cargo - Why?  
User currently offlinena From Germany, joined Dec 1999, 10731 posts, RR: 9
Posted (2 years 11 months 4 weeks 15 hours ago) and read 1861 times:

Whats the reason for this one-plane operation leased from Korean Air?


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11 replies: All unread, jump to last
 
User currently offlinerfields5421 From United States of America, joined Jul 2007, 7607 posts, RR: 31
Reply 1, posted (2 years 11 months 4 weeks 12 hours ago) and read 1728 times:

It is a startup which hopes to grow. Korean Air owns 25% of the venture, probably view it as a way to get into a closed market with future growth potential.

User currently offlineouboy79 From United States of America, joined Nov 2001, 4599 posts, RR: 22
Reply 2, posted (2 years 11 months 4 weeks 11 hours ago) and read 1672 times:

It is almost like saying why are Mom & Pop opening a story when we have Walmart.

I would imagine the whole point of starting up a new business is to umm...make money, grow over time, and be successful? Didn't realize there was a requirement that an airline had to start with 30 aircraft to avoid being questioned "why are you here?"


User currently offlinecaptainmeeerkat From Russia, joined Aug 2010, 388 posts, RR: 1
Reply 3, posted (2 years 11 months 4 weeks 11 hours ago) and read 1627 times:

Quoting ouboy79 (Reply 2):
Didn't realize there was a requirement

Didn't realise that a genuine question merited a sarcastic answer on a.net either.

OP, Grandstar is a new start up this year in Tianjin, serving Frankfurt from Pudong and Tianjin. KE owns 25% stake. The majority shareholder is Sinotrans, one of the largest shipping companies in Asia.

We can assume they will grow in the future and add new destinations. They also handle some non-scheduled transport globally.



my luggage is better travelled than me!
User currently offline777way From Pakistan, joined Dec 2005, 5716 posts, RR: 4
Reply 4, posted (2 years 11 months 4 weeks 11 hours ago) and read 1591 times:



Quoting captainmeeerkat (Reply 3):
Grandstar is a new start up this year in Tianjin,

Grandstar is almost five years old.

[Edited 2011-09-23 10:25:50]

User currently onlinemayor From United States of America, joined Mar 2008, 10424 posts, RR: 14
Reply 5, posted (2 years 11 months 4 weeks 10 hours ago) and read 1547 times:

Quoting captainmeeerkat (Reply 3):
Didn't realise that a genuine question merited a sarcastic answer on a.net either.

How long have you been here?



"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
User currently offlinecaptainmeeerkat From Russia, joined Aug 2010, 388 posts, RR: 1
Reply 6, posted (2 years 11 months 4 weeks 10 hours ago) and read 1513 times:

Quoting mayor (Reply 5):
How long have you been here?

Obviously not long enough!

Does anyone know if Grandstar have expansion plans? They can't be doing too bad if they're flying to FRA, and they are well backed financially; with KE as a strategic advisor for air cargo operations too.



my luggage is better travelled than me!
User currently offlinena From Germany, joined Dec 1999, 10731 posts, RR: 9
Reply 7, posted (2 years 11 months 4 weeks 9 hours ago) and read 1462 times:

Quoting ouboy79 (Reply 2):
It is almost like saying why are Mom & Pop opening a story when we have Walmart.

I would imagine the whole point of starting up a new business is to umm...make money, grow over time, and be successful? Didn't realize there was a requirement that an airline had to start with 30 aircraft to avoid being questioned "why are you here?"

Oh dear, where are you coming from? Your answer makes no sense and it is unfriendly.

Grandstar is 5 years old, still only operates only one plane. Reason enough to ask a question. Cant make too much sense unless they have a modest number of longterm clients who for some odd reason dont want their packages fly with Korean Air.


User currently offlineBMI727 From United States of America, joined Feb 2009, 15739 posts, RR: 27
Reply 8, posted (2 years 11 months 4 weeks 7 hours ago) and read 1408 times:

Quoting ouboy79 (Reply 2):
It is almost like saying why are Mom & Pop opening a story when we have Walmart.

Not exactly when Korean Air already has their own freighters.

But if I had to guess, I'd say that it probably has to do with having the opportunity for a reasonable price and possibly having a lower cost base. Not unlike Lufthansa being a partner in AeroLogic.

In fact, I think that LAN has invested in no less than four other cargo airlines besides their own LAN Cargo.



Why do Aerospace Engineering students have to turn things in on time?
User currently offlineViscount724 From Switzerland, joined Oct 2006, 25300 posts, RR: 22
Reply 9, posted (2 years 11 months 4 weeks 7 hours ago) and read 1371 times:

Quoting BMI727 (Reply 8):
Not unlike Lufthansa being a partner in AeroLogic.

LH also has a 25% share in Jade Cargo, the Chinese carrier that operates 6 747-400ERFs.


User currently offlineer757 From Cayman Islands, joined May 2005, 2523 posts, RR: 7
Reply 10, posted (2 years 11 months 4 weeks 7 hours ago) and read 1371 times:

Quoting na (Reply 7):
Cant make too much sense unless they have a modest number of longterm clients who for some odd reason dont want their packages fly with Korean Air.

That would be my guess - they probably have a contract or contracts for recurring business on the routes. Wonder if they can "borrow" a KE freighter when it's time for a D check on this plane.
Like the livery by the way.


User currently offlinedynkrisolo From United States of America, joined Feb 2001, 1866 posts, RR: 7
Reply 11, posted (2 years 11 months 4 weeks 7 hours ago) and read 1338 times:

Quoting na (Reply 7):
Grandstar is 5 years old, still only operates only one plane. Reason enough to ask a question. Cant make too much sense unless they have a modest number of longterm clients who for some odd reason dont want their packages fly with Korean Air.

KE knew from their own experience that as Korea's manufacturing base grew, KE's cargo business grew. China is today's factory of the world. So, China's air cargo is bound to grow. From China to N America, KE could manage via ICN connection. To west of China, KE would need a JV based in China.

Anyhow, many foreign airlines shared the same vision and started their JVs before KE did. The Chinese market isn't big enough yet to profitably support that many cargo airlines, and some of them have started to consolidate. That's probably why it doesn't make too much sense for OP to expand at this time. OTOH, if they don't expand, then they can be marginalized.


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