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dc10lover
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Should Airlines Concentrate On Air Cargo

Thu Feb 27, 2020 5:48 pm

To help bring in even more Revenue and make more Profits?
Why endure the nightmare and congestion of LAX when BUR, LGB, ONT & SNA is so much easier to fly in and out of. Same with OAK & SJC when it comes to SFO.
 
dc10lover
Topic Author
Posts: 1594
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Re: Should Airlines Concentrate On Air Cargo

Thu Feb 27, 2020 5:52 pm

Maybe Amazon can "Team Up" with the Airlines to possibly help in "Efficient Distribution" of Producs.
Why endure the nightmare and congestion of LAX when BUR, LGB, ONT & SNA is so much easier to fly in and out of. Same with OAK & SJC when it comes to SFO.
 
FriscoHeavy
Posts: 1841
Joined: Tue May 27, 2014 4:31 pm

Re: Should Airlines Concentrate On Air Cargo

Thu Feb 27, 2020 6:16 pm

dc10lover wrote:
To help bring in even more Revenue and make more Profits?


No. If it was that lucrative, they'd focus on it more. The topic is discussed all the time on here and the consensus is that for most airlines, cargo only makes up about 2-3% of revenue. Nothing to sneeze at, but nothing earth shattering either. There are a handful of airlines where cargo makes up a slightly larger percentage of revenue, but not by much.

So no, airlines shouldn't put a higher concentration on cargo.
Whatever
 
trex8
Posts: 5680
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Re: Should Airlines Concentrate On Air Cargo

Sun Mar 01, 2020 10:20 pm

FriscoHeavy wrote:
dc10lover wrote:
To help bring in even more Revenue and make more Profits?


No. If it was that lucrative, they'd focus on it more. The topic is discussed all the time on here and the consensus is that for most airlines, cargo only makes up about 2-3% of revenue. Nothing to sneeze at, but nothing earth shattering either. There are a handful of airlines where cargo makes up a slightly larger percentage of revenue, but not by much.

So no, airlines shouldn't put a higher concentration on cargo.


CI has 30% of its revenue from cargo (and why it can keep 18 744Fs busy!) which is why despite BR flying more RPKs, CI still has more revenue (actually they were still ahead in total pax too!)
https://www.china-airlines.com/us/en/Im ... -25055.pdf
 
leftcoast8
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Re: Should Airlines Concentrate On Air Cargo

Sun Mar 01, 2020 11:32 pm

CX also carries a lot of cargo, since Hong Kong is the aviation gateway to the rest of the PRC. The goods coming from the factories in mainland China flow through Hong Kong on their way to overseas markets. This is why CX didn't buy the A380, since it doesn't make a good freighter plane.
 
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eta unknown
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Re: Should Airlines Concentrate On Air Cargo

Mon Mar 02, 2020 10:22 am

The above carriers are more exceptions to the norm- for most carriers concentrating more on cargo isn't worth it especially with current yields. I remember years ago BA experimented with a 747-200F and got rid of it surprisingly quickly- it just wasn't worth it.
 
VSMUT
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Re: Should Airlines Concentrate On Air Cargo

Mon Mar 02, 2020 11:15 am

eta unknown wrote:
The above carriers are more exceptions to the norm- for most carriers concentrating more on cargo isn't worth it especially with current yields. I remember years ago BA experimented with a 747-200F and got rid of it surprisingly quickly- it just wasn't worth it.


It isn't too long ago they had 3 sub-contracted 747-8F in BA markings.
 
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eta unknown
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Re: Should Airlines Concentrate On Air Cargo

Mon Mar 02, 2020 3:39 pm

Correct, however these 747-8F aircraft were subcontracted. Also at the same time BA ditched the 74F, their 2 combis were re-configured to all pax.
 
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PatrickZ80
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Re: Should Airlines Concentrate On Air Cargo

Mon Mar 02, 2020 8:16 pm

From what I understand, cargo pays like shit. Yealds are really low.

This is exactly the reason most LCCs aren't interested in cargo. It increases the aircraft weight and therefor fuel burn and it takes time to load and unload which increases turnaround times. That would cost so much money that the income from cargo can't cover it, they'd make a loss on their cargo operations.
 
FriscoHeavy
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Joined: Tue May 27, 2014 4:31 pm

Re: Should Airlines Concentrate On Air Cargo

Mon Mar 02, 2020 8:43 pm

PatrickZ80 wrote:
From what I understand, cargo pays like shit. Yealds are really low.

This is exactly the reason most LCCs aren't interested in cargo. It increases the aircraft weight and therefor fuel burn and it takes time to load and unload which increases turnaround times. That would cost so much money that the income from cargo can't cover it, they'd make a loss on their cargo operations.


*Yields

With that said, carrying cargo doesn't typically result in a loss for airlines. They wouldn't carry it if it were the case. It doesn't cost 'so much money that income doesn't cover it'. However, it's icing on the cake for most airlines and contrary to what you said, a relatively easy way to cushion the bottom line. Adding 2-4% in revenue to the bottom line is always nice. You better believe that if they are carrying it, it's not causing them to 'go into the red'. Airlines aren't a charity and carrying cargo just for fun.

Regarding low cost carriers, they may not want the complexities and headaches of carrying it, but for most airlines, it's a nice extra revenue stream, but doesn't typically make or break a route.
Whatever

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