Why do no American passenger airlines still operate dedicated cargo flights?
$begingroup$
I was reading recently that Northwest Airlines was the last American passenger carrier to operate dedicated Cargo aircraft. Why do none of the large US airlines operate dedicated cargo flights anymore? This seems to be common among international Airlines (Lufthansa, China Airlines, Qatar Airways, EVA, etc).
Presumably UPS and Fedex's extensive networks have something to do with it? I'm surprised that none of them find it economical, however.
airline-operations cargo
asked 4 hours ago
zymhanzymhan
3168
$endgroup$
add a comment |
$begingroup$
I was reading recently that Northwest Airlines was the last American passenger carrier to operate dedicated Cargo aircraft. Why do none of the large US airlines operate dedicated cargo flights anymore? This seems to be common among international Airlines (Lufthansa, China Airlines, Qatar Airways, EVA, etc).
Presumably UPS and Fedex's extensive networks have something to do with it? I'm surprised that none of them find it economical, however.
airline-operations cargo
asked 4 hours ago
zymhanzymhan
3168
$endgroup$
add a comment |
$begingroup$
I was reading recently that Northwest Airlines was the last American passenger carrier to operate dedicated Cargo aircraft. Why do none of the large US airlines operate dedicated cargo flights anymore? This seems to be common among international Airlines (Lufthansa, China Airlines, Qatar Airways, EVA, etc).
Presumably UPS and Fedex's extensive networks have something to do with it? I'm surprised that none of them find it economical, however.
airline-operations cargo
asked 4 hours ago
zymhanzymhan
3168
$endgroup$
I was reading recently that Northwest Airlines was the last American passenger carrier to operate dedicated Cargo aircraft. Why do none of the large US airlines operate dedicated cargo flights anymore? This seems to be common among international Airlines (Lufthansa, China Airlines, Qatar Airways, EVA, etc).
Presumably UPS and Fedex's extensive networks have something to do with it? I'm surprised that none of them find it economical, however.
airline-operations cargo
airline-operations cargo
asked 4 hours ago
zymhanzymhan
3168
asked 4 hours ago
zymhanzymhan
3168
asked 4 hours ago
zymhanzymhan
3168
asked 4 hours ago
zymhanzymhan
3168
asked 4 hours ago
zymhanzymhan
3168
3168
add a comment |
add a comment |
3 Answers
3
active
oldest
votes
$begingroup$
The cargo operation (dedicated fleet) requires its own logistical and operational apparatus. Unless an airline's cargo subsidiary is large enough to get the required economy of scale, along with decent market conditions, it's not worth the trouble and expense.
According to this article, Lufthansa's cargo operation lost money in 2016 and they were complaining about subsidies to Gulf operators that allow them to undercut airlines like Lufthansa who have marginally profitable cargo divisions.
And there's the rub. A good chunk of cargo operations outside the North America are subsidized (certainly the ones operated by government owned or controlled airlines). In the absence of subsidies, and with a harder focus on making every dollar count, in North America it was found to be more efficient to specialize.
answered 3 hours ago
John KJohn K
19.8k12457
$endgroup$
$begingroup$
That makes a lot of sense, a cargo operation would require a lot of additional infrastructure that's not helpful for the passenger side of the house.
$endgroup$
– zymhan
3 hours ago
$begingroup$
Razor...thin...margins.
$endgroup$
– J...
1 hour ago
add a comment |
$begingroup$
A lot of airlines (USA flagged or not) still ship cargo in the hold along with passengers baggage, for some airlines its a high dollar business. Carriers like UPS, FedEx, etc, have surely put a dent in the plane-full-o-cargo market but for the airlines it actually helps to mitigate risk. If you carry both cargo and passengers you can be assured of a more stable revenue stream across the board. An airline can mitigate a lull in travel or cargo movement by also generating income from the other stream.
There is also a lot of differing logistics in moving cargo that a passenger airline may not want to deal with. UPS and FedEx also maintain truck fleets to deal with the package once it gets to an airport. This end to end business model is attractive to consumers. An airline, who may have the space on the plane but not the trucks, can't offer such service and for a given customer this may make or break the deal.
answered 3 hours ago
DaveDave
65.7k4124237
$endgroup$
$begingroup$
That makes sense, I noticed that Delta still lets you arrange cargo shipments on their scheduled passenger flights. It makes sense to have both in the same plane so you can make money from two different sources.
$endgroup$
– zymhan
3 hours ago
$begingroup$
You'd also need warehouses/processing facilities for large-scale cargo operations, in order to get things on the right plane (and packed efficiently), then transferred to trucks, and have every package tracked through the process.
$endgroup$
– jamesqf
3 hours ago
add a comment |
$begingroup$
Alaska Airlines, American, Delta and United all have thriving cargo shipping operations.
- https://www.aacargo.com
- https://www.alaskaair.com/content/cargo/general
- https://www.deltacargo.com
- https://www.aacargo.com
Alaska used to run 737 Combi to ship to ship cargo and passengers in the main cabin on their “Milk Run” up the Alaskan panhandle. They now have dedicated freighters to handle the cargo.
- https://thepointsguy.com/2017/10/final-flight-alaska-airlines-737-400-combi/
Good luck shipping your parcel.
answered 14 mins ago
gwallygwally
1,069511
$endgroup$
add a comment |
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3 Answers
3
active
oldest
votes
3 Answers
3
active
oldest
votes
active
oldest
votes
active
oldest
votes
$begingroup$
The cargo operation (dedicated fleet) requires its own logistical and operational apparatus. Unless an airline's cargo subsidiary is large enough to get the required economy of scale, along with decent market conditions, it's not worth the trouble and expense.
According to this article, Lufthansa's cargo operation lost money in 2016 and they were complaining about subsidies to Gulf operators that allow them to undercut airlines like Lufthansa who have marginally profitable cargo divisions.
And there's the rub. A good chunk of cargo operations outside the North America are subsidized (certainly the ones operated by government owned or controlled airlines). In the absence of subsidies, and with a harder focus on making every dollar count, in North America it was found to be more efficient to specialize.
answered 3 hours ago
John KJohn K
19.8k12457
$endgroup$
$begingroup$
That makes a lot of sense, a cargo operation would require a lot of additional infrastructure that's not helpful for the passenger side of the house.
$endgroup$
– zymhan
3 hours ago
$begingroup$
Razor...thin...margins.
$endgroup$
– J...
1 hour ago
add a comment |
$begingroup$
The cargo operation (dedicated fleet) requires its own logistical and operational apparatus. Unless an airline's cargo subsidiary is large enough to get the required economy of scale, along with decent market conditions, it's not worth the trouble and expense.
According to this article, Lufthansa's cargo operation lost money in 2016 and they were complaining about subsidies to Gulf operators that allow them to undercut airlines like Lufthansa who have marginally profitable cargo divisions.
And there's the rub. A good chunk of cargo operations outside the North America are subsidized (certainly the ones operated by government owned or controlled airlines). In the absence of subsidies, and with a harder focus on making every dollar count, in North America it was found to be more efficient to specialize.
answered 3 hours ago
John KJohn K
19.8k12457
$endgroup$
$begingroup$
That makes a lot of sense, a cargo operation would require a lot of additional infrastructure that's not helpful for the passenger side of the house.
$endgroup$
– zymhan
3 hours ago
$begingroup$
Razor...thin...margins.
$endgroup$
– J...
1 hour ago
add a comment |
$begingroup$
The cargo operation (dedicated fleet) requires its own logistical and operational apparatus. Unless an airline's cargo subsidiary is large enough to get the required economy of scale, along with decent market conditions, it's not worth the trouble and expense.
According to this article, Lufthansa's cargo operation lost money in 2016 and they were complaining about subsidies to Gulf operators that allow them to undercut airlines like Lufthansa who have marginally profitable cargo divisions.
And there's the rub. A good chunk of cargo operations outside the North America are subsidized (certainly the ones operated by government owned or controlled airlines). In the absence of subsidies, and with a harder focus on making every dollar count, in North America it was found to be more efficient to specialize.
answered 3 hours ago
John KJohn K
19.8k12457
$endgroup$
The cargo operation (dedicated fleet) requires its own logistical and operational apparatus. Unless an airline's cargo subsidiary is large enough to get the required economy of scale, along with decent market conditions, it's not worth the trouble and expense.
According to this article, Lufthansa's cargo operation lost money in 2016 and they were complaining about subsidies to Gulf operators that allow them to undercut airlines like Lufthansa who have marginally profitable cargo divisions.
And there's the rub. A good chunk of cargo operations outside the North America are subsidized (certainly the ones operated by government owned or controlled airlines). In the absence of subsidies, and with a harder focus on making every dollar count, in North America it was found to be more efficient to specialize.
answered 3 hours ago
John KJohn K
19.8k12457
answered 3 hours ago
John KJohn K
19.8k12457
answered 3 hours ago
John KJohn K
19.8k12457
answered 3 hours ago
John KJohn K
19.8k12457
19.8k12457
$begingroup$
That makes a lot of sense, a cargo operation would require a lot of additional infrastructure that's not helpful for the passenger side of the house.
$endgroup$
– zymhan
3 hours ago
$begingroup$
Razor...thin...margins.
$endgroup$
– J...
1 hour ago
add a comment |
$begingroup$
That makes a lot of sense, a cargo operation would require a lot of additional infrastructure that's not helpful for the passenger side of the house.
$endgroup$
– zymhan
3 hours ago
$begingroup$
Razor...thin...margins.
$endgroup$
– J...
1 hour ago
$begingroup$
That makes a lot of sense, a cargo operation would require a lot of additional infrastructure that's not helpful for the passenger side of the house.
$endgroup$
– zymhan
3 hours ago
$begingroup$
That makes a lot of sense, a cargo operation would require a lot of additional infrastructure that's not helpful for the passenger side of the house.
$endgroup$
– zymhan
3 hours ago
$begingroup$
Razor...thin...margins.
$endgroup$
– J...
1 hour ago
$begingroup$
Razor...thin...margins.
$endgroup$
– J...
1 hour ago
add a comment |
$begingroup$
A lot of airlines (USA flagged or not) still ship cargo in the hold along with passengers baggage, for some airlines its a high dollar business. Carriers like UPS, FedEx, etc, have surely put a dent in the plane-full-o-cargo market but for the airlines it actually helps to mitigate risk. If you carry both cargo and passengers you can be assured of a more stable revenue stream across the board. An airline can mitigate a lull in travel or cargo movement by also generating income from the other stream.
There is also a lot of differing logistics in moving cargo that a passenger airline may not want to deal with. UPS and FedEx also maintain truck fleets to deal with the package once it gets to an airport. This end to end business model is attractive to consumers. An airline, who may have the space on the plane but not the trucks, can't offer such service and for a given customer this may make or break the deal.
answered 3 hours ago
DaveDave
65.7k4124237
$endgroup$
$begingroup$
That makes sense, I noticed that Delta still lets you arrange cargo shipments on their scheduled passenger flights. It makes sense to have both in the same plane so you can make money from two different sources.
$endgroup$
– zymhan
3 hours ago
$begingroup$
You'd also need warehouses/processing facilities for large-scale cargo operations, in order to get things on the right plane (and packed efficiently), then transferred to trucks, and have every package tracked through the process.
$endgroup$
– jamesqf
3 hours ago
add a comment |
$begingroup$
A lot of airlines (USA flagged or not) still ship cargo in the hold along with passengers baggage, for some airlines its a high dollar business. Carriers like UPS, FedEx, etc, have surely put a dent in the plane-full-o-cargo market but for the airlines it actually helps to mitigate risk. If you carry both cargo and passengers you can be assured of a more stable revenue stream across the board. An airline can mitigate a lull in travel or cargo movement by also generating income from the other stream.
There is also a lot of differing logistics in moving cargo that a passenger airline may not want to deal with. UPS and FedEx also maintain truck fleets to deal with the package once it gets to an airport. This end to end business model is attractive to consumers. An airline, who may have the space on the plane but not the trucks, can't offer such service and for a given customer this may make or break the deal.
answered 3 hours ago
DaveDave
65.7k4124237
$endgroup$
$begingroup$
That makes sense, I noticed that Delta still lets you arrange cargo shipments on their scheduled passenger flights. It makes sense to have both in the same plane so you can make money from two different sources.
$endgroup$
– zymhan
3 hours ago
$begingroup$
You'd also need warehouses/processing facilities for large-scale cargo operations, in order to get things on the right plane (and packed efficiently), then transferred to trucks, and have every package tracked through the process.
$endgroup$
– jamesqf
3 hours ago
add a comment |
$begingroup$
A lot of airlines (USA flagged or not) still ship cargo in the hold along with passengers baggage, for some airlines its a high dollar business. Carriers like UPS, FedEx, etc, have surely put a dent in the plane-full-o-cargo market but for the airlines it actually helps to mitigate risk. If you carry both cargo and passengers you can be assured of a more stable revenue stream across the board. An airline can mitigate a lull in travel or cargo movement by also generating income from the other stream.
There is also a lot of differing logistics in moving cargo that a passenger airline may not want to deal with. UPS and FedEx also maintain truck fleets to deal with the package once it gets to an airport. This end to end business model is attractive to consumers. An airline, who may have the space on the plane but not the trucks, can't offer such service and for a given customer this may make or break the deal.
answered 3 hours ago
DaveDave
65.7k4124237
$endgroup$
A lot of airlines (USA flagged or not) still ship cargo in the hold along with passengers baggage, for some airlines its a high dollar business. Carriers like UPS, FedEx, etc, have surely put a dent in the plane-full-o-cargo market but for the airlines it actually helps to mitigate risk. If you carry both cargo and passengers you can be assured of a more stable revenue stream across the board. An airline can mitigate a lull in travel or cargo movement by also generating income from the other stream.
There is also a lot of differing logistics in moving cargo that a passenger airline may not want to deal with. UPS and FedEx also maintain truck fleets to deal with the package once it gets to an airport. This end to end business model is attractive to consumers. An airline, who may have the space on the plane but not the trucks, can't offer such service and for a given customer this may make or break the deal.
answered 3 hours ago
DaveDave
65.7k4124237
answered 3 hours ago
DaveDave
65.7k4124237
answered 3 hours ago
DaveDave
65.7k4124237
answered 3 hours ago
DaveDave
65.7k4124237
65.7k4124237
$begingroup$
That makes sense, I noticed that Delta still lets you arrange cargo shipments on their scheduled passenger flights. It makes sense to have both in the same plane so you can make money from two different sources.
$endgroup$
– zymhan
3 hours ago
$begingroup$
You'd also need warehouses/processing facilities for large-scale cargo operations, in order to get things on the right plane (and packed efficiently), then transferred to trucks, and have every package tracked through the process.
$endgroup$
– jamesqf
3 hours ago
add a comment |
$begingroup$
That makes sense, I noticed that Delta still lets you arrange cargo shipments on their scheduled passenger flights. It makes sense to have both in the same plane so you can make money from two different sources.
$endgroup$
– zymhan
3 hours ago
$begingroup$
You'd also need warehouses/processing facilities for large-scale cargo operations, in order to get things on the right plane (and packed efficiently), then transferred to trucks, and have every package tracked through the process.
$endgroup$
– jamesqf
3 hours ago
$begingroup$
That makes sense, I noticed that Delta still lets you arrange cargo shipments on their scheduled passenger flights. It makes sense to have both in the same plane so you can make money from two different sources.
$endgroup$
– zymhan
3 hours ago
$begingroup$
That makes sense, I noticed that Delta still lets you arrange cargo shipments on their scheduled passenger flights. It makes sense to have both in the same plane so you can make money from two different sources.
$endgroup$
– zymhan
3 hours ago
$begingroup$
You'd also need warehouses/processing facilities for large-scale cargo operations, in order to get things on the right plane (and packed efficiently), then transferred to trucks, and have every package tracked through the process.
$endgroup$
– jamesqf
3 hours ago
$begingroup$
You'd also need warehouses/processing facilities for large-scale cargo operations, in order to get things on the right plane (and packed efficiently), then transferred to trucks, and have every package tracked through the process.
$endgroup$
– jamesqf
3 hours ago
add a comment |
$begingroup$
Alaska Airlines, American, Delta and United all have thriving cargo shipping operations.
- https://www.aacargo.com
- https://www.alaskaair.com/content/cargo/general
- https://www.deltacargo.com
- https://www.aacargo.com
Alaska used to run 737 Combi to ship to ship cargo and passengers in the main cabin on their “Milk Run” up the Alaskan panhandle. They now have dedicated freighters to handle the cargo.
- https://thepointsguy.com/2017/10/final-flight-alaska-airlines-737-400-combi/
Good luck shipping your parcel.
answered 14 mins ago
gwallygwally
1,069511
$endgroup$
add a comment |
$begingroup$
Alaska Airlines, American, Delta and United all have thriving cargo shipping operations.
- https://www.aacargo.com
- https://www.alaskaair.com/content/cargo/general
- https://www.deltacargo.com
- https://www.aacargo.com
Alaska used to run 737 Combi to ship to ship cargo and passengers in the main cabin on their “Milk Run” up the Alaskan panhandle. They now have dedicated freighters to handle the cargo.
- https://thepointsguy.com/2017/10/final-flight-alaska-airlines-737-400-combi/
Good luck shipping your parcel.
answered 14 mins ago
gwallygwally
1,069511
$endgroup$
add a comment |
$begingroup$
Alaska Airlines, American, Delta and United all have thriving cargo shipping operations.
- https://www.aacargo.com
- https://www.alaskaair.com/content/cargo/general
- https://www.deltacargo.com
- https://www.aacargo.com
Alaska used to run 737 Combi to ship to ship cargo and passengers in the main cabin on their “Milk Run” up the Alaskan panhandle. They now have dedicated freighters to handle the cargo.
- https://thepointsguy.com/2017/10/final-flight-alaska-airlines-737-400-combi/
Good luck shipping your parcel.
answered 14 mins ago
gwallygwally
1,069511
$endgroup$
Alaska Airlines, American, Delta and United all have thriving cargo shipping operations.
- https://www.aacargo.com
- https://www.alaskaair.com/content/cargo/general
- https://www.deltacargo.com
- https://www.aacargo.com
Alaska used to run 737 Combi to ship to ship cargo and passengers in the main cabin on their “Milk Run” up the Alaskan panhandle. They now have dedicated freighters to handle the cargo.
- https://thepointsguy.com/2017/10/final-flight-alaska-airlines-737-400-combi/
Good luck shipping your parcel.
answered 14 mins ago
gwallygwally
1,069511
answered 14 mins ago
gwallygwally
1,069511
answered 14 mins ago
gwallygwally
1,069511
answered 14 mins ago
gwallygwally
1,069511
1,069511
add a comment |
add a comment |
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