Taiwan-based China Airlines' (CI) cargo division, China Airlines Cargo, is making adjustments in its operations to cope with a challenging global economic environment.
“The cargo picture is not pessimistic, but it is challenging,” president Huang-Hsiang Sun told ATW in Taipei. “Fuel prices are high. CI Cargo operates long-haul flights. If fuel prices remain high as it is now, it will be very challenging for us.” He said Europe’s weak economy is adding to the problem.
To maintain capacity, CI is dispatching freighters over its network to keep its 20-strong Boeing 747-400Fs fleet busy. CI has increased cargo services on transpacific routes via Osaka Kansai (KIX), filling a void after Japan Air Lines shut down freighter operations.
“Thanks to the liberalization of air service agreements, for example, we can do this between Taiwan and Japan. But we need more such agreements in Asia, otherwise our cargo loads will be very difficult to increase,” Sun said.
CI Cargo operates seven weekly flights via KIX to North America.
“This kind of operation is very new for us, but that also means new opportunities,” he said.
The carrier has also re-routed flights to Europe and offers multiple stops. “We operate via Southeast Asia to Europe and connecting new points together, [such as] from Bangkok or Ho Chi Minh City to Europe. In the past, we focused more on transpacific flights.”
Sun said that CI's 747-400F fleet is relatively young. Nevertheless, as the global cargo business has changed over the past several months, the strategy will have to be flexible, he said. CI Cargo is leaving its options open regarding any fleet changes, as it balances the right aircraft size with demand.
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