Looking after the bottom
line in the airfreight
industry is all about
balance – and that’s
an issue to which Air
Cargo Germany has been
applying its mind.
While the recent
acquisition of a major
shareholding in ACG by
Russian airline major
Volga-Dnepr translates
into a more credible and
stable service for the local
airfreight industry, the new
parent company will be
assessing route profitability
in the coming months.
ACG operates two B747
freighters a week from
Germany, “and the inbound
flights are virtually full,”
says Gerd von Mansberg,
MD of ACG general
sales agent The Cargo
Connection.
“But the outbound is a
problem – which is why
we need an intermediate
African destination on the
SA-Frankfurt leg.”
And that’s a decision that
will be made in the near
future.
According to Von
Mansberg, the northbound
contracted cargo – largely
automotive-related – has
been lost. Not only has
seafreight taken a major
share based on cost
considerations, but South
Africa’s labour laws have
cost the industry dearly.
“Motor companies
have a range of models.
But in South Africa,
Toyota for example is
only manufacturing two
platforms – the Hilux and
Corolla.
“And because everything
is so standardised and
they’ve got the logistics
right, there’s little need for
last-minute spares.”
Catalytic converters,
which used to be a strong
outbound commodity, now
move by sea. “And we’ve
lost the leather business,
50% of which has moved to
Bulgaria.”
The financial muscle
that Volga-Dnepr brings
to ACG – along with the
many new destinations
from Frankfurt-Hahn
– is clearly a positive
development for the local
airfreight industry. And
with 17 B747s in its fleet,
it’s a substantial operation.
TCC will be going
all out to market the
airline’s new global
network opportunities
from Frankfurt which
include China, Armenia,
Kazakhstan, India, Kenya,
Sudan and the USA.
Air Cargo Germany rethinks SA-Frankfurt routing
27 Apr 2012 - by Joy Orlek
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