Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- Boeing: Breaking Up is Hard to Do October 14, 2024
- Where and who will be laid off in Boeing reset? October 14, 2024
- Pontifications: Boeing needs massive reset, and not just with labor October 14, 2024
- How Boeing’s actions affect Products, Airbus: Analysis (Update) October 11, 2024
- Boeing Announces Preliminary Significant Q3 Loss: Cuts 767 Freighter Program, Delays 777X EIS, Major Layoffs October 11, 2024
Can a passenger airliner run as a freighter with today’s tariffs? Part 4.
By Bjorn Fehrm
Subscription Required
Introduction
April 23, 2020, © Leeham News: We spent the last weeks checking if passenger airliners used as belly freighters make economic sense.
With the present air freight prices, it does. The high freight prices are a result of half the World’s freight capacity disappearing with the grounding of passenger jets.
Our economic analysis assumed standard densities for the belly cargo. What happens if this is no longer the case? Can more voluminous cargo fly in the passenger cabin?
Figure 1. Air Canada Boeing 777 with humanitarian supplies (face masks) transported in the cabin. Source: Air Canada.
Summary:
- Widebody aircraft can temporarily fly as belly freighters without loading cargo in the cabin, but enabling cabin cargo will improve the business case with the present lower-density cargo.
- For single-aisle jets the belly cargo holds are too small, a cabin cargo loading system is necessary for efficient operation.
- Is it OK to take out the seats and load cargo in the cabin? For normal cargo no, it isn’t. We check what is required.
Amazon, a new challenge for FedEx and UPS
Subscription Required
Now open for all readers.
By Vincent Valery
Introduction
Oct. 7, 2019, © Leeham News: Amazon’s moves into ACMI air service, a dramatic construction of an air freight operation and entering ground delivery services threatens FedEx and UPS.
Although UPS last week beat Amazon to the punch with approval from the Federal Aviation Administration for drone-based package deliveries, Amazon was first to advance the idea.
FedEx canceled its contracts with Amazon as the latter moved into ground delivery. FedEx revenues have fallen sharply in recent months.
Summary
- Growing Amazon footprint in delivery business;
- Leads to direct competition with FedEx and UPS;
- Drone delivery development;
- A threat to traditional delivery service business model;
- Trade slump exposes FedEx more.
Predictive power of cargo volumes
Subscription Required
By Vincent Valery
July 8, 2019, © Leeham News: It has been said that the collapse of freight volumes in the second half of 2008 preceded the sharp drop in passenger traffic. Cargo also allegedly led the passenger recovery in the second half of 2009. We will verify with IATA data whether the data backs such claim.
We will also check whether cargo volumes still have as much predictive power in the post Great Recession world. The current context of increasing trade tensions and signs of economic slowdown make this analysis relevant. We will ponder whether the next global recession is around the corner.
Credit: Cathay Pacific.