ABSTRACT
This chapter compares the profitability of carrying air cargo both on freighters and passenger flights with passengers and other parts of the supply chain. Those airlines that carry only freight have often struggled to stay afloat financially, faced with major industry downturns at frequent intervals. The chapter presents two case studies from Asia and the US to discuss the financial performance of air cargo carriers. The first is Nippon Cargo Airlines, an all-cargo carrier based in Japan, and the second Federal Express (FedEx) from the US. The first is an airport-to-airport operator, the second is an integrator. Together these two typify the way the air cargo industry has developed over the past 30 years, reflecting regulatory and economic challenges along the way. Finally, air cargo subsidiaries of network, principally passenger, carriers are analysed using the limited data available.
