na
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Grandstar Cargo - Why?

Fri Sep 23, 2011 12:09 pm

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


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rfields5421
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RE: Grandstar Cargo - Why?

Fri Sep 23, 2011 2:47 pm

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.
 
ouboy79
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RE: Grandstar Cargo - Why?

Fri Sep 23, 2011 3:40 pm

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?"
 
captainmeeerkat
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RE: Grandstar Cargo - Why?

Fri Sep 23, 2011 3:56 pm

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.
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777way
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RE: Grandstar Cargo - Why?

Fri Sep 23, 2011 4:23 pm



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]
 
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mayor
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RE: Grandstar Cargo - Why?

Fri Sep 23, 2011 4:49 pm

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?
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captainmeeerkat
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RE: Grandstar Cargo - Why?

Fri Sep 23, 2011 5:07 pm

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.
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na
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RE: Grandstar Cargo - Why?

Fri Sep 23, 2011 5:56 pm

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.
 
BMI727
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RE: Grandstar Cargo - Why?

Fri Sep 23, 2011 7:25 pm

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.
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Viscount724
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RE: Grandstar Cargo - Why?

Fri Sep 23, 2011 7:39 pm

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.
 
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ER757
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RE: Grandstar Cargo - Why?

Fri Sep 23, 2011 7:39 pm

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.
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dynkrisolo
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RE: Grandstar Cargo - Why?

Fri Sep 23, 2011 8:06 pm

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.