[LaWhore]

Did IAG shoot themselves in the foot by phasing out all cargo aircraft? 18 months into the pandemic, we still see BA operate numerous passenger aircraft as cargo only. Is it time IAG acquired all cargo carrier?

[FrDougal]

Nopes.

They have simply diversified into cargo operations in lieu of any passenger demand. If they had dedicated freighters then they would simply have a lot more parked up passenger aircraft doing nothing.

[AMcWhirter]

Indeed. In common with so many other carriers around the world.

Just one of several reports we published in 2020.

Lufthansa coins “preighter” term for passenger-cargo flights

[Gin&Tonic]

It’s many years since any of the IAG airlines had dedicated freighter aircraft, so I doubt any decision made then could be classed as shooting themselves in the foot and strategically failing to anticipating a global pandemic in 2020.

[LaWhore]

It’s not a view shared by the Lufthansa Group.

[Gin&Tonic]

It’s not a view shared by many carriers but what’s your point, IAG decided many years since to move away from dedicated freight capacity, none of its hubs can be supported by traffic being trucked in unlike mainland European hubs. You really need to understand the cargo industry to see how the origin and hub concept works and would drive a carriers position and decisions.

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red_robbo, cwoodward

[LaWhore]

IAG hasn’t adapted well enough at the start of the pandemic to provide enough cargo capacity. There are cargo hubs in the UK so your point of mainland Europe being at an advantage doesn’t add up. IAG hasn’t diversified its portfolio to appropriately react to changes in passenger and cargo demand.

[Gin&Tonic]

That wasn’t the point of your topic, name me one UK hub where more than 50% of the capacity is operated by non integrated carriers.

[AMcWhirter]

Interesting that Lufthansa has now decided to convert two of its short-haul aircraft to operate in all-cargo configuration.

I say “all-cargo” as until now the conversions Lufthansa carried out were for passenger-cargo operation.

There cannot be many European national passenger airlines who have converted some of their modern short-haul aircraft for cargo use.

Lufthansa CityLine to add two A321 freighters in 2022: Lufthansa Group will enter the narrowbody dedicated freighter segment with Lufthansa CityLine (CL, Munich) set to add its first two converted A321-200(P2F)s next year. The German group underlined… https://t.co/SU6lOUj69S

— ch-aviation (@chaviation) July 8, 2021

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Bullfrog

[cwoodward]

It seems that there is indeed money to be made in freight, at least in the mid term and the passenger to freighter market looks to be booming.
A 10 minute look around the internet this evening reveals almost frenzied activity.

About 20 X elderly B757s are presently undergoing conversion along with several A330s and Boeing has now long back orders for B777 freighters,
Singaporean ST Engineering and government controlled investment company Temasek have formed a substantial leasing venture for converted freighters and Cathay Pacific Group one of the largest air freight operators have already converted in house several older A330s for freight operation and Irish leasing company GTLK Europe has acquired four A321 converted freighters this year and it seems that they have already been leased.

The Baltic Exchange Air Freight Index shows that while cargo rates have fallen back over the last 12 months from their May 2020 high they are still significantly higher than 2019 levels. In April this year rates on the Hong Kong-North America freight lane spiked to $8.48/kg, higher even than the $7.73/kg seen in May last year.

How long will this mini boom last I wonder ?

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Bullfrog

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