Good day
I would like to start a cargo only airline (again) but in the past when I have tried to operate a cargo airline I have failed miserably. So I am wondering if there are any tips/tricks for cargo airlines. I am assuming they are completely different from a passenger airline.
Any advice you can provide would be greatly appreciated
They require a large investment at ones and instead of growing bigger you need to be big in the beginning. Connections and a perfect wave system is the key. I have never started a successful cargo airline with a budget of under 150,000,000AS$. Maybe it is possible to start with 10 million but I have never been successful with it. I see cargo airlines as a step to take when one has covered the passenger market and want to expand globally. You also need to use those top cargo hubs. If they are full you don't really have a chance. An other idea is to buy the cargo division from another carrier and just rebrand it to your own.
To scare you even more I have to tell you that you will have to know the ORS and know what prices you can offer your service for. Also remember that as your image increases you will be able to offer higher prizes while being equally competitive. You need to get that formula.
well that sucks, so basically I would need support from a passenger airline..
thanks for the insight
Hi Shawn,
I managed to start a cargo company on Gatow a couple years ago, with only 10.000.000 in startup cash. It was slow, but it worked. I had LUX as a hub - and used a wave system to generate profit. Slowly I moved to DAY, and got a great hub running there. I ended up with the biggest cargo company on Gatow, with plenty of hubs in every continent!
There’s many ways to do it, but a good tactic could be an old server with available 737-300F’s and 757-200F’s. They are awesome machines.
So it’s possible indeed. Although it will be easier with a lot of cash, as mentioned.
So it's possible indeed. Although it will be easier with a lot of cash, as mentioned.
It is possible and not particularly hard at a server start but on a server which got a couple of years it requires a big investment.
It is possible and not particularly hard at a server start but on a server which got a couple of years it requires a big investment.
I did it when Gatow was around 1.5 years old. Although it was probably made easier because there were only 2 other large cargo ops.
So it’s obviously still possible on an established server. It’s all about finding unserved markets, and thinking creative.
But if I had to do it today, I would also do it with a big chunk of money, made in another airline.
My cargo airline is over 1 year old and I started it with 30 mio capital. When I started a large cargo airline liquidated and there were plenty of slots in LEJ. Initially I started with AT7Fs and 737Cs. Latter I got some cheap MD-10Fs, which let me start long haul service which turned out to be extremely profitable. You dont just have to earn tens of millions right away. Just keep your profits in green. With time some airlines liquidate and more planes and slots get available. There comes your opportunity to grow fast.
I initially started in LEJ then expanded to CVG, SHJ and recently PVG.
Hi Shawn,
I managed to start a cargo company on Gatow a couple years ago, with only 10.000.000 in startup cash. It was slow, but it worked. I had LUX as a hub - and used a wave system to generate profit. Slowly I moved to DAY, and got a great hub running there. I ended up with the biggest cargo company on Gatow, with plenty of hubs in every continent!
There’s many ways to do it, but a good tactic could be an old server with available 737-300F’s and 757-200F’s. They are awesome machines.
So it’s possible indeed. Although it will be easier with a lot of cash, as mentioned.
so you ran the cargo airline just like a passenger with the wave system out of one airport? the 757F is a VERY hard plane to come by.
the 757F is a VERY hard plane to come by.
Get TU204s then. I recommend starting with just ATRs.
does the age of the aircraft play any effect on the ORS for cargo like it does for passenger?
It affects the image which in turn affects the final ORS rating.
well thats good to know, I think I will wait until my passenger airline has the ability to invest a large some of cash. thanks for the insight