Why don't American passenger airlines operate dedicated cargo flights any more?Why do some airlines operate...
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Why don't American passenger airlines operate dedicated cargo flights any more?
Why do some airlines operate fleets so diversified?Did Pacific Southwest Airlines ever operate flights under VFR?Are cargo and passenger flights flown differently?Why do airlines have intermediate stopovers with no passenger boarding?Why might American Airlines fly a 767 from JFK to EWR?Why do we see many more 5th and 8th freedom cargo flights than passenger flights?Why don't we have helicopter airlines?Do ETOPS requirements vary between passenger, cargo, and non-revenue flights?Which items are allowed on passenger flights but not on cargo ones?Why offload bags for missing passengers when flights are allowed to carry unaccompanied non-PAX air-cargo in holds?
$begingroup$
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
edited 13 hours ago
Community♦
1
asked yesterday
zymhanzymhan
363111
$endgroup$
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
edited 13 hours ago
Community♦
1
asked yesterday
zymhanzymhan
363111
$endgroup$
$begingroup$
And Amazon now too.
$endgroup$
– CrossRoads
15 hours ago
$begingroup$
Amazon doesn't have passengers, which makes them more like UPS or FedEx. Except they contract out (wet lease?) their planes for the most part, to Atlas Air, for example.
$endgroup$
– zymhan
14 hours ago
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
edited 13 hours ago
Community♦
1
asked yesterday
zymhanzymhan
363111
$endgroup$
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
edited 13 hours ago
Community♦
1
asked yesterday
zymhanzymhan
363111
edited 13 hours ago
Community♦
1
asked yesterday
zymhanzymhan
363111
edited 13 hours ago
Community♦
1
edited 13 hours ago
Community♦
1
edited 13 hours ago
Community♦
1
1
asked yesterday
zymhanzymhan
363111
asked yesterday
zymhanzymhan
363111
asked yesterday
zymhanzymhan
363111
363111
$begingroup$
And Amazon now too.
$endgroup$
– CrossRoads
15 hours ago
$begingroup$
Amazon doesn't have passengers, which makes them more like UPS or FedEx. Except they contract out (wet lease?) their planes for the most part, to Atlas Air, for example.
$endgroup$
– zymhan
14 hours ago
add a comment |
$begingroup$
And Amazon now too.
$endgroup$
– CrossRoads
15 hours ago
$begingroup$
Amazon doesn't have passengers, which makes them more like UPS or FedEx. Except they contract out (wet lease?) their planes for the most part, to Atlas Air, for example.
$endgroup$
– zymhan
14 hours ago
$begingroup$
And Amazon now too.
$endgroup$
– CrossRoads
15 hours ago
$begingroup$
And Amazon now too.
$endgroup$
– CrossRoads
15 hours ago
$begingroup$
Amazon doesn't have passengers, which makes them more like UPS or FedEx. Except they contract out (wet lease?) their planes for the most part, to Atlas Air, for example.
$endgroup$
– zymhan
14 hours ago
$begingroup$
Amazon doesn't have passengers, which makes them more like UPS or FedEx. Except they contract out (wet lease?) their planes for the most part, to Atlas Air, for example.
$endgroup$
– zymhan
14 hours ago
add a comment |
3 Answers
3
active
oldest
votes
$begingroup$
Alaska Airlines, Hawaiian Airlines still have dedicated freighters.
American, Delta, Southwest and United all have thriving cargo shipping operations, but as far as I can tell, no longer have freighters.
- https://www.aacargo.com
- https://www.alaskaair.com/content/cargo/general
- https://www.deltacargo.com
- https://www.hawaiianaircargo.com
- https://www.swacargo.com
Alaska used to run 737 Combi 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.
edited 12 hours ago
Mad Physicist
1073
answered yesterday
gwallygwally
1,274512
$endgroup$
3
$begingroup$
The question is about cargo-only aircraft, not belly cargo operations. Alaska Airlines is a special case, they only service Alaskan routes with their 737F. Besides, the general public can't ship belly cargo post 9/11, you must be TSA-approved.
$endgroup$
– user71659
yesterday
11
$begingroup$
@user71659 And the answer explicitly says that Alaskan has cargo-only aircraft. You can claim that they're a special case but the question claims that no US passenger airline operates cargo-only flights and this answer rebuts that claim.
$endgroup$
– David Richerby
yesterday
11
$begingroup$
@user71659 So what? Alaska is still part of the USA. Alaskan is still an American carrier. None of what you're saying invalidates the answer in any way.
$endgroup$
– David Richerby
yesterday
3
$begingroup$
@user71659 "the real answer" has been covered by others. This supplemental answer provides good information which is completely on-topic and on-point.
$endgroup$
– user33375
yesterday
2
$begingroup$
@user71659 "Your premise is wrong, X is not true" is a perfectly accurate answer to "why X?" So is "X is not true technically; the reason why it is mostly true is Y". So this answer would be improved by talking about why it is mostly true, but it remains an on-topic answer.
$endgroup$
– Yakk
11 hours ago
|
show 6 more comments
$begingroup$
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 yesterday
DaveDave
65.9k4124238
$endgroup$
1
$begingroup$
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
yesterday
1
$begingroup$
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
yesterday
4
$begingroup$
In the US? Because "trucks", +1, in a country with a federally maintained interstate highway system.
$endgroup$
– Mazura
yesterday
2
$begingroup$
@Mazura Trucks are mostly last-mile haulage. The privately-maintained railroad system is the more direct competitor to air freight.
$endgroup$
– chrylis
15 hours ago
$begingroup$
@chrylis: Rail isn't really a competitor to air freight. Rail ships heavy, often bulk materials at low cost; air ships high-value materials where speed is important. (Imagine shipping grain or bulk chemicals by air :-))
$endgroup$
– jamesqf
12 hours 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 yesterday
John KJohn K
19.9k12457
$endgroup$
1
$begingroup$
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
yesterday
1
$begingroup$
Razor...thin...margins.
$endgroup$
– J...
yesterday
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
$begingroup$
Alaska Airlines, Hawaiian Airlines still have dedicated freighters.
American, Delta, Southwest and United all have thriving cargo shipping operations, but as far as I can tell, no longer have freighters.
- https://www.aacargo.com
- https://www.alaskaair.com/content/cargo/general
- https://www.deltacargo.com
- https://www.hawaiianaircargo.com
- https://www.swacargo.com
Alaska used to run 737 Combi 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.
edited 12 hours ago
Mad Physicist
1073
answered yesterday
gwallygwally
1,274512
$endgroup$
3
$begingroup$
The question is about cargo-only aircraft, not belly cargo operations. Alaska Airlines is a special case, they only service Alaskan routes with their 737F. Besides, the general public can't ship belly cargo post 9/11, you must be TSA-approved.
$endgroup$
– user71659
yesterday
11
$begingroup$
@user71659 And the answer explicitly says that Alaskan has cargo-only aircraft. You can claim that they're a special case but the question claims that no US passenger airline operates cargo-only flights and this answer rebuts that claim.
$endgroup$
– David Richerby
yesterday
11
$begingroup$
@user71659 So what? Alaska is still part of the USA. Alaskan is still an American carrier. None of what you're saying invalidates the answer in any way.
$endgroup$
– David Richerby
yesterday
3
$begingroup$
@user71659 "the real answer" has been covered by others. This supplemental answer provides good information which is completely on-topic and on-point.
$endgroup$
– user33375
yesterday
2
$begingroup$
@user71659 "Your premise is wrong, X is not true" is a perfectly accurate answer to "why X?" So is "X is not true technically; the reason why it is mostly true is Y". So this answer would be improved by talking about why it is mostly true, but it remains an on-topic answer.
$endgroup$
– Yakk
11 hours ago
|
show 6 more comments
$begingroup$
Alaska Airlines, Hawaiian Airlines still have dedicated freighters.
American, Delta, Southwest and United all have thriving cargo shipping operations, but as far as I can tell, no longer have freighters.
- https://www.aacargo.com
- https://www.alaskaair.com/content/cargo/general
- https://www.deltacargo.com
- https://www.hawaiianaircargo.com
- https://www.swacargo.com
Alaska used to run 737 Combi 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.
edited 12 hours ago
Mad Physicist
1073
answered yesterday
gwallygwally
1,274512
$endgroup$
3
$begingroup$
The question is about cargo-only aircraft, not belly cargo operations. Alaska Airlines is a special case, they only service Alaskan routes with their 737F. Besides, the general public can't ship belly cargo post 9/11, you must be TSA-approved.
$endgroup$
– user71659
yesterday
11
$begingroup$
@user71659 And the answer explicitly says that Alaskan has cargo-only aircraft. You can claim that they're a special case but the question claims that no US passenger airline operates cargo-only flights and this answer rebuts that claim.
$endgroup$
– David Richerby
yesterday
11
$begingroup$
@user71659 So what? Alaska is still part of the USA. Alaskan is still an American carrier. None of what you're saying invalidates the answer in any way.
$endgroup$
– David Richerby
yesterday
3
$begingroup$
@user71659 "the real answer" has been covered by others. This supplemental answer provides good information which is completely on-topic and on-point.
$endgroup$
– user33375
yesterday
2
$begingroup$
@user71659 "Your premise is wrong, X is not true" is a perfectly accurate answer to "why X?" So is "X is not true technically; the reason why it is mostly true is Y". So this answer would be improved by talking about why it is mostly true, but it remains an on-topic answer.
$endgroup$
– Yakk
11 hours ago
|
show 6 more comments
$begingroup$
Alaska Airlines, Hawaiian Airlines still have dedicated freighters.
American, Delta, Southwest and United all have thriving cargo shipping operations, but as far as I can tell, no longer have freighters.
- https://www.aacargo.com
- https://www.alaskaair.com/content/cargo/general
- https://www.deltacargo.com
- https://www.hawaiianaircargo.com
- https://www.swacargo.com
Alaska used to run 737 Combi 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.
edited 12 hours ago
Mad Physicist
1073
answered yesterday
gwallygwally
1,274512
$endgroup$
Alaska Airlines, Hawaiian Airlines still have dedicated freighters.
American, Delta, Southwest and United all have thriving cargo shipping operations, but as far as I can tell, no longer have freighters.
- https://www.aacargo.com
- https://www.alaskaair.com/content/cargo/general
- https://www.deltacargo.com
- https://www.hawaiianaircargo.com
- https://www.swacargo.com
Alaska used to run 737 Combi 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.
edited 12 hours ago
Mad Physicist
1073
answered yesterday
gwallygwally
1,274512
edited 12 hours ago
Mad Physicist
1073
edited 12 hours ago
Mad Physicist
1073
edited 12 hours ago
Mad Physicist
1073
1073
answered yesterday
gwallygwally
1,274512
answered yesterday
gwallygwally
1,274512
answered yesterday
gwallygwally
1,274512
1,274512
3
$begingroup$
The question is about cargo-only aircraft, not belly cargo operations. Alaska Airlines is a special case, they only service Alaskan routes with their 737F. Besides, the general public can't ship belly cargo post 9/11, you must be TSA-approved.
$endgroup$
– user71659
yesterday
11
$begingroup$
@user71659 And the answer explicitly says that Alaskan has cargo-only aircraft. You can claim that they're a special case but the question claims that no US passenger airline operates cargo-only flights and this answer rebuts that claim.
$endgroup$
– David Richerby
yesterday
11
$begingroup$
@user71659 So what? Alaska is still part of the USA. Alaskan is still an American carrier. None of what you're saying invalidates the answer in any way.
$endgroup$
– David Richerby
yesterday
3
$begingroup$
@user71659 "the real answer" has been covered by others. This supplemental answer provides good information which is completely on-topic and on-point.
$endgroup$
– user33375
yesterday
2
$begingroup$
@user71659 "Your premise is wrong, X is not true" is a perfectly accurate answer to "why X?" So is "X is not true technically; the reason why it is mostly true is Y". So this answer would be improved by talking about why it is mostly true, but it remains an on-topic answer.
$endgroup$
– Yakk
11 hours ago
|
show 6 more comments
3
$begingroup$
The question is about cargo-only aircraft, not belly cargo operations. Alaska Airlines is a special case, they only service Alaskan routes with their 737F. Besides, the general public can't ship belly cargo post 9/11, you must be TSA-approved.
$endgroup$
– user71659
yesterday
11
$begingroup$
@user71659 And the answer explicitly says that Alaskan has cargo-only aircraft. You can claim that they're a special case but the question claims that no US passenger airline operates cargo-only flights and this answer rebuts that claim.
$endgroup$
– David Richerby
yesterday
11
$begingroup$
@user71659 So what? Alaska is still part of the USA. Alaskan is still an American carrier. None of what you're saying invalidates the answer in any way.
$endgroup$
– David Richerby
yesterday
3
$begingroup$
@user71659 "the real answer" has been covered by others. This supplemental answer provides good information which is completely on-topic and on-point.
$endgroup$
– user33375
yesterday
2
$begingroup$
@user71659 "Your premise is wrong, X is not true" is a perfectly accurate answer to "why X?" So is "X is not true technically; the reason why it is mostly true is Y". So this answer would be improved by talking about why it is mostly true, but it remains an on-topic answer.
$endgroup$
– Yakk
11 hours ago
3
3
$begingroup$
The question is about cargo-only aircraft, not belly cargo operations. Alaska Airlines is a special case, they only service Alaskan routes with their 737F. Besides, the general public can't ship belly cargo post 9/11, you must be TSA-approved.
$endgroup$
– user71659
yesterday
$begingroup$
The question is about cargo-only aircraft, not belly cargo operations. Alaska Airlines is a special case, they only service Alaskan routes with their 737F. Besides, the general public can't ship belly cargo post 9/11, you must be TSA-approved.
$endgroup$
– user71659
yesterday
11
11
$begingroup$
@user71659 And the answer explicitly says that Alaskan has cargo-only aircraft. You can claim that they're a special case but the question claims that no US passenger airline operates cargo-only flights and this answer rebuts that claim.
$endgroup$
– David Richerby
yesterday
$begingroup$
@user71659 And the answer explicitly says that Alaskan has cargo-only aircraft. You can claim that they're a special case but the question claims that no US passenger airline operates cargo-only flights and this answer rebuts that claim.
$endgroup$
– David Richerby
yesterday
11
11
$begingroup$
@user71659 So what? Alaska is still part of the USA. Alaskan is still an American carrier. None of what you're saying invalidates the answer in any way.
$endgroup$
– David Richerby
yesterday
$begingroup$
@user71659 So what? Alaska is still part of the USA. Alaskan is still an American carrier. None of what you're saying invalidates the answer in any way.
$endgroup$
– David Richerby
yesterday
3
3
$begingroup$
@user71659 "the real answer" has been covered by others. This supplemental answer provides good information which is completely on-topic and on-point.
$endgroup$
– user33375
yesterday
$begingroup$
@user71659 "the real answer" has been covered by others. This supplemental answer provides good information which is completely on-topic and on-point.
$endgroup$
– user33375
yesterday
2
2
$begingroup$
@user71659 "Your premise is wrong, X is not true" is a perfectly accurate answer to "why X?" So is "X is not true technically; the reason why it is mostly true is Y". So this answer would be improved by talking about why it is mostly true, but it remains an on-topic answer.
$endgroup$
– Yakk
11 hours ago
$begingroup$
@user71659 "Your premise is wrong, X is not true" is a perfectly accurate answer to "why X?" So is "X is not true technically; the reason why it is mostly true is Y". So this answer would be improved by talking about why it is mostly true, but it remains an on-topic answer.
$endgroup$
– Yakk
11 hours ago
|
show 6 more comments
$begingroup$
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 yesterday
DaveDave
65.9k4124238
$endgroup$
1
$begingroup$
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
yesterday
1
$begingroup$
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
yesterday
4
$begingroup$
In the US? Because "trucks", +1, in a country with a federally maintained interstate highway system.
$endgroup$
– Mazura
yesterday
2
$begingroup$
@Mazura Trucks are mostly last-mile haulage. The privately-maintained railroad system is the more direct competitor to air freight.
$endgroup$
– chrylis
15 hours ago
$begingroup$
@chrylis: Rail isn't really a competitor to air freight. Rail ships heavy, often bulk materials at low cost; air ships high-value materials where speed is important. (Imagine shipping grain or bulk chemicals by air :-))
$endgroup$
– jamesqf
12 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 yesterday
DaveDave
65.9k4124238
$endgroup$
1
$begingroup$
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
yesterday
1
$begingroup$
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
yesterday
4
$begingroup$
In the US? Because "trucks", +1, in a country with a federally maintained interstate highway system.
$endgroup$
– Mazura
yesterday
2
$begingroup$
@Mazura Trucks are mostly last-mile haulage. The privately-maintained railroad system is the more direct competitor to air freight.
$endgroup$
– chrylis
15 hours ago
$begingroup$
@chrylis: Rail isn't really a competitor to air freight. Rail ships heavy, often bulk materials at low cost; air ships high-value materials where speed is important. (Imagine shipping grain or bulk chemicals by air :-))
$endgroup$
– jamesqf
12 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 yesterday
DaveDave
65.9k4124238
$endgroup$
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 yesterday
DaveDave
65.9k4124238
answered yesterday
DaveDave
65.9k4124238
answered yesterday
DaveDave
65.9k4124238
answered yesterday
DaveDave
65.9k4124238
65.9k4124238
1
$begingroup$
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
yesterday
1
$begingroup$
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
yesterday
4
$begingroup$
In the US? Because "trucks", +1, in a country with a federally maintained interstate highway system.
$endgroup$
– Mazura
yesterday
2
$begingroup$
@Mazura Trucks are mostly last-mile haulage. The privately-maintained railroad system is the more direct competitor to air freight.
$endgroup$
– chrylis
15 hours ago
$begingroup$
@chrylis: Rail isn't really a competitor to air freight. Rail ships heavy, often bulk materials at low cost; air ships high-value materials where speed is important. (Imagine shipping grain or bulk chemicals by air :-))
$endgroup$
– jamesqf
12 hours ago
add a comment |
1
$begingroup$
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
yesterday
1
$begingroup$
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
yesterday
4
$begingroup$
In the US? Because "trucks", +1, in a country with a federally maintained interstate highway system.
$endgroup$
– Mazura
yesterday
2
$begingroup$
@Mazura Trucks are mostly last-mile haulage. The privately-maintained railroad system is the more direct competitor to air freight.
$endgroup$
– chrylis
15 hours ago
$begingroup$
@chrylis: Rail isn't really a competitor to air freight. Rail ships heavy, often bulk materials at low cost; air ships high-value materials where speed is important. (Imagine shipping grain or bulk chemicals by air :-))
$endgroup$
– jamesqf
12 hours ago
1
1
$begingroup$
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
yesterday
$begingroup$
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
yesterday
1
1
$begingroup$
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
yesterday
$begingroup$
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
yesterday
4
4
$begingroup$
In the US? Because "trucks", +1, in a country with a federally maintained interstate highway system.
$endgroup$
– Mazura
yesterday
$begingroup$
In the US? Because "trucks", +1, in a country with a federally maintained interstate highway system.
$endgroup$
– Mazura
yesterday
2
2
$begingroup$
@Mazura Trucks are mostly last-mile haulage. The privately-maintained railroad system is the more direct competitor to air freight.
$endgroup$
– chrylis
15 hours ago
$begingroup$
@Mazura Trucks are mostly last-mile haulage. The privately-maintained railroad system is the more direct competitor to air freight.
$endgroup$
– chrylis
15 hours ago
$begingroup$
@chrylis: Rail isn't really a competitor to air freight. Rail ships heavy, often bulk materials at low cost; air ships high-value materials where speed is important. (Imagine shipping grain or bulk chemicals by air :-))
$endgroup$
– jamesqf
12 hours ago
$begingroup$
@chrylis: Rail isn't really a competitor to air freight. Rail ships heavy, often bulk materials at low cost; air ships high-value materials where speed is important. (Imagine shipping grain or bulk chemicals by air :-))
$endgroup$
– jamesqf
12 hours 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 yesterday
John KJohn K
19.9k12457
$endgroup$
1
$begingroup$
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
yesterday
1
$begingroup$
Razor...thin...margins.
$endgroup$
– J...
yesterday
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 yesterday
John KJohn K
19.9k12457
$endgroup$
1
$begingroup$
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
yesterday
1
$begingroup$
Razor...thin...margins.
$endgroup$
– J...
yesterday
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 yesterday
John KJohn K
19.9k12457
$endgroup$
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 yesterday
John KJohn K
19.9k12457
answered yesterday
John KJohn K
19.9k12457
answered yesterday
John KJohn K
19.9k12457
answered yesterday
John KJohn K
19.9k12457
19.9k12457
1
$begingroup$
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
yesterday
1
$begingroup$
Razor...thin...margins.
$endgroup$
– J...
yesterday
add a comment |
1
$begingroup$
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
yesterday
1
$begingroup$
Razor...thin...margins.
$endgroup$
– J...
yesterday
1
1
$begingroup$
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
yesterday
$begingroup$
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
yesterday
1
1
$begingroup$
Razor...thin...margins.
$endgroup$
– J...
yesterday
$begingroup$
Razor...thin...margins.
$endgroup$
– J...
yesterday
add a comment |
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$begingroup$
And Amazon now too.
$endgroup$
– CrossRoads
15 hours ago
$begingroup$
Amazon doesn't have passengers, which makes them more like UPS or FedEx. Except they contract out (wet lease?) their planes for the most part, to Atlas Air, for example.
$endgroup$
– zymhan
14 hours ago