Cargo B grounded by the recession
By Will Waters
business by falling rates, delayed aircraft deliveries and a failure to attract
were lower than required to make the business viable.
freighter because of last year’s strike at manufacturer Boeing.
the perishables season and close to the air freight industry’s slow summer season.
declined by 20-25% since October, meaning rates and revenue figures for April
and May were “less than we had hoped and expected”, van der Weide added.
in the short-term, ” he added.
but had been unable to persuade investors to provide additional working capital.
last year, injecting around US$10m into the carrier and leasing it two of NCA’s
new freighters. But sources said NCA’s own financial challenges had limited
NYK’s willingness to invest any more money.
but believed a niche independent European cargo airline could be viable in more
normal economic times. “It has just been a matter of unfortunate timing, ” he
Cargo B operated in were not as bad as some, but all markets were depressed and
very difficult to make money in.
and had only limited economies of scale, ” he added.
carriers, he added.
markets, and so it was unclear whether Cargo B’s withdrawal would be enough to
bring new competitors in.