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Air Canada to pursue e-commerce boom with converted freighters
Air Canada is enjoying strong revenues from operating temporary passenger freighters. Executives are turning to all-cargo aircraft to grow that side of the business, seeing a big opportunity to haul e-commerce shipments. (www.freightwaves.com) Altro...
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Hey everyone, have some updated info. Air Canada is not converting aircraft to fly e-commerce shipments as a contract carrier for a retailer or airline. . . That was my misunderstanding from the earnings call, in which Air Canada officials appeared to draw a clear connection. After talking with AC Cargo, it seems they are only involved with a small parcel delivery pilot project, that's very localized. . . You can check the story now for the updated version.
These companies need to be careful not to over-extend themselves as this freight boom will not last forever. At some point there will be a glut of capacity, and this will put pressure on margins and profits.
Air Canada will be able to return its focus on passengers when air travel recovers, but the freight-only providers who are adding capacity need to be careful.
Air Canada will be able to return its focus on passengers when air travel recovers, but the freight-only providers who are adding capacity need to be careful.
@Torsten - Yea I wondered similar. Covid isn't going to be around forever and with Pfizer's news yesterday, the travel industry could be in full swing sooner than later. I think it's a risky investment going all in this intensely.
Only caveat is they're going to focus on e-commerce, maybe running for Amazon, or contracting for FedEx, UPS or DHL. Or hauling for someone else. And that market has staying power.
I think even Amazon's freight volume will eventually shrink somewhat again once people's shopping habits begin to return to normal.
Of course some retailers will have closed permanently and thus consumers have fewer local choices, but people also want to go outside and not be stuck inside their homes, and shopping locally will let them do that.
Of course some retailers will have closed permanently and thus consumers have fewer local choices, but people also want to go outside and not be stuck inside their homes, and shopping locally will let them do that.
Hey everyone, have some updated info. Air Canada is not converting aircraft to fly e-commerce shipments as a contract carrier for a retailer or airline. . . That was my misunderstanding from the earnings call, in which Air Canada officials appeared to draw a clear connection. After talking with AC Cargo, it seems they are only involved with a small parcel delivery pilot project, that's very localized. . . You can check the story now for the updated version.
thank you Eric!
