After putting this issue together I’ve come to the realisation that it’s actually a bit of downer issue. It wasn’t really intended to paint a downbeat mood, but really that seems to be the underlying current in some of the pieces from the cover story to the economics pages to the supplement.
The issue kicks off with a cover story focusing on the thoughts of FedEx Express’ Asia boss, David Cunningham, who delivered an entertaining and indeed thought provoking talk on how the air express and general cargo industry has changed over the past three decades that he has been in the industry. Peppered with interesting factoids, humorous anecdotes and delivered with a Southern charm that 20 years in Hong Kong has obliviously failed to dent, he raised some very pertinent issues that the general air cargo sector would do well to heed.
The supplement in this issue focuses on freighter aircraft with a focus on discussions that came largely out of a recent conference in Hong Kong. While the market downturn is hardly news to anyone, its’ prolonged nature makes some topics inherently more interesting than others. Take for example the topic of freighters. Whether newbuilds or conversions it’s almost a subject better left for another – hopefully better day. As Cathay’s Nick Rhodes pointed out during the conference, the very idea of preparing a case for the acquisition of new or even converted freighter capacity to take to an airline board, is inconceivable at this point in time. Getting a return on assets in this environment is one tough, if not impossible task.
Of particular focus at the Hong Kong event was the issue of the rising belly capacity in the market thanks to the massive influx of modern widebody aircraft that are in and of themselves, mini, or in the words of Ram Menen, ‘invisible’ freighters. Is there a future for big freighters, let alone all maindeck players and is the current combination carrier cargo model still valid? These were some of the questions thrown at the industry panel and highlighted in the supplement.
And one interesting aspect, the issue of B747-400 P2F conversions was studiously avoided during the two-day event. But having spoken to various delegates on the sidelines of the event, including one who is involved in a 747 conversion operation, the programme is is pretty much dead as a dodo after the floor pretty much dropped out from under it. On the economic front, two pages of articles discussing the global economic situation and confidence of freight forwarders provide a somewhat contradictory picture of where we are headed. But then again, did anybody really expect anything else, other than contradictory?
We hope you enjoy the read and don’t worry, it can (probably) only get better.
