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why isnt cargo doing as bad as legacy?

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Old 07-22-2008, 06:56 PM
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Default why isnt cargo doing as bad as legacy?

I dont know to much about the aviation industry, ( I just like flying and aviation stuff) anyway I was wondering why cargo and charter airlines are not laying off pilots like the passenger airlines, and last time I checked there are cargo and charter airlines hiring pilots still. So why is it they are still going good and the passenger airlines seem like they are about to fall of the earth?
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Old 07-22-2008, 07:18 PM
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3-4 overnight express letters cost the customer as much as a discounted airline ticket. Now picture a sitting passenger, his seat and space below it, his overhead bin space, and finally his bag in the belly. Imagine how many overnight express letters can be put in the space of that one passenger and all his things. Letters stacked from the floor to the roof in the space of one passenger seat is a lot of revenue, more than the pax carriers can dream of.

Very over simplistic analogy and there's much more to it, but you get the idea.
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Old 07-22-2008, 07:23 PM
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Think: Revenue Density and the ability to pass smaller, but effective, incremental pricing increases to the end customer.
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Old 07-22-2008, 07:44 PM
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Originally Posted by J Dawg
3-4 overnight express letters cost the customer as much as a discounted airline ticket. Now picture a sitting passenger, his seat and space below it, his overhead bin space, and finally his bag in the belly. Imagine how many overnight express letters can be put in the space of that one passenger and all his things. Letters stacked from the floor to the roof in the space of one passenger seat is a lot of revenue, more than the pax carriers can dream of.

Very over simplistic analogy and there's much more to it, but you get the idea.
Plus you only have to book 2 hotel rooms for cargo guys vs 6 for passenger airlines domestically and still 2-3 for cargo vs 11-12 for passengers internationally and you don't have to feed and entertain 200+ people. If the flight cancels we'll truck the stuff vs getting them a hotel room and food and drinks.
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Old 07-22-2008, 07:45 PM
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The ACMI and on-demand cargo are starting to take hits.
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Old 07-22-2008, 07:47 PM
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Because the flying public will *****, moan, and cry bloody murder if they have to pay $200 a to go to Mexico, Disney Land, or East Jesus Kansas round trip.

But they have ZERO qualms about paying $50 to ship an envelope to get to XYZ by noon tomorrow.
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Old 07-22-2008, 10:10 PM
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Originally Posted by dojetdriver
Because the flying public will *****, moan, and cry bloody murder if they have to pay $200 a to go to Mexico, Disney Land, or East Jesus Kansas round trip.

But they have ZERO qualms about paying $50 to ship an envelope to get to XYZ by noon tomorrow.
ie. the boxes don't b!tch!!
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Old 07-22-2008, 10:33 PM
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Originally Posted by MD11Fr8Dog
ie. the boxes don't b!tch!!
Yeah, that too.

If they would just start putting people in containers as well as charging by the pound, the pax world would be making money hand over fist. Well, maybe not, they'd screw that up too.

They would be charging less (way less) than Fedex/UPS charge for their slowest method of shipping a package just to retain market share and STILL scratch their heads wondering where the profit is.
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Old 07-22-2008, 11:38 PM
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Originally Posted by sensesfail4049
I dont know to much about the aviation industry, ( I just like flying and aviation stuff) anyway I was wondering why cargo and charter airlines are not laying off pilots like the passenger airlines, and last time I checked there are cargo and charter airlines hiring pilots still. So why is it they are still going good and the passenger airlines seem like they are about to fall of the earth?
Simple math. 300 seats at 200 bucks a pop doesnt even cover the cost of the fuel. 100,000 lbs of express packages at 10 bucks a pound is a MILLION in revenue.

People will pay out the kazoo to have their crap delivered on time and not bat an eye, but they wont pay much more than the cost of a bus ticket to send themselves somewhere on an airplane.

Bottom line, crap has to get there and get there fast, the economy depends on it. People dont really have to be anywhere, anytime soon..........
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Old 07-23-2008, 03:31 AM
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Originally Posted by viktorbravo
Simple math. 300 seats at 200 bucks a pop doesnt even cover the cost of the fuel. 100,000 lbs of express packages at 10 bucks a pound is a MILLION in revenue.

People will pay out the kazoo to have their crap delivered on time and not bat an eye, but they wont pay much more than the cost of a bus ticket to send themselves somewhere on an airplane.

Bottom line, crap has to get there and get there fast, the economy depends on it. People dont really have to be anywhere, anytime soon..........
Not all of those seats go for $200! I fly a lot of last minute and the tickets are a lot more. Change the time on a departure.......$150!
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