f.pier
Posts: 1405
Joined: Fri Aug 25, 2000 2:50 am

Jade Cargo. Is There So Much Market For Cargo?

Thu Aug 24, 2006 2:23 am

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?
 
n757kw
Posts: 387
Joined: Sat Sep 13, 2003 3:08 am

RE: Jade Cargo. Is There So Much Market For Cargo?

Thu Aug 24, 2006 3:12 am

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
 
AirWillie6475
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Joined: Thu Jan 27, 2005 1:45 pm

RE: Jade Cargo. Is There So Much Market For Cargo?

Thu Aug 24, 2006 11:47 am

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.
 
IL76
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Joined: Mon Jan 05, 2004 5:43 am

RE: Jade Cargo. Is There So Much Market For Cargo?

Thu Aug 24, 2006 8:26 pm

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...
 
Oykie
Posts: 1563
Joined: Sat Jan 07, 2006 9:21 am

RE: Jade Cargo. Is There So Much Market For Cargo?

Thu Aug 24, 2006 8:49 pm

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
 
PanHAM
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Joined: Fri May 06, 2005 6:44 pm

RE: Jade Cargo. Is There So Much Market For Cargo?

Thu Aug 24, 2006 9:08 pm

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.
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DABZF
Posts: 1063
Joined: Mon Mar 15, 2004 10:25 pm

RE: Jade Cargo. Is There So Much Market For Cargo?

Thu Aug 24, 2006 11:26 pm

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
 
Avianca
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Joined: Tue Jan 25, 2005 5:33 am

RE: Jade Cargo. Is There So Much Market For Cargo?

Fri Aug 25, 2006 8:03 am

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
 
N754PR
Posts: 2909
Joined: Mon Oct 04, 1999 10:03 pm

RE: Jade Cargo. Is There So Much Market For Cargo?

Fri Aug 25, 2006 8:10 am

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.
Bush, your a sad, sad man.
 
dalca
Posts: 186
Joined: Tue Aug 15, 2006 8:36 am

RE: Jade Cargo. Is There So Much Market For Cargo?

Fri Aug 25, 2006 8:45 am

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.
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