American Airlines Cargo files for bankruptcy, then goes on spending spree
2012 04 02
- Details
AMERICAN Airlines Cargo plans to purchase nine Boeing 777-300ERs and up to 100 B787s in the next five years, with a delivery of a 777-300ER scheduled to begin in November despite filing for bankruptcy late last year.
The new aircraft are vital for realising the AA Cargo's plans to develop long-haul routes from North America, with the primary focus on Asia and Latin America. This means the carrier is in expansion mode despite filing for bankruptcy in late November 2011.
Speaking as a discussion panellist for the "Doing Business with Latin America" session at AirCargo 2012, AA Cargo president Dave Brooks said that as part of the restructuring process, the airline's officials are aiming for 20 per cent growth over the next seven years.
"And I would venture to say that virtually all of that growth will come internationally, and it will come in the markets that are growing: Latin America and Asia," Mr Brooks, reported Roswell Georgia's Air Cargo World.
But it was too early to work out the exact details for the routes and that expansion could still be a few years away, he said.
Mr Brooks said he had high hopes for the airline's routes to South America given that the carrier has established a hub at Miami International Airport since the mid-to-late 1980s, which he said, has served the airline "extremely well".
"A number of [Latin American] countries - whether it was for cargo on American or cargo on another carrier's airplane - basically got their economic engines started as a result of having air access out of the region, and we certainly played a part in that," said Mr Brooks.
In South America he sees business opportunities in tapping Peru's thriving asparagus export industry and Chile's flourishing seafood industry.
Mr Brooks also highlighted that pharmaceuticals is another profitable area for the cargo carrier as he believes demand for airlift of pharmaceuticals will grow in the next few years, particularly, as drug patents expire and demand for generic drugs will increase.
Other areas to focus on after pharmaceuticals will be the transportation of perishables, fruits and vegetables and seafood in Latin America.
The carrier is, on the other hand, concerned about the impact that high fuel prices have on air freight.
"The trick to making money in the air cargo business as a carrier is to make sure that you're handling the right freight," Mr Brooks said. "You have to recognise the difference between good air freight and crappy air freight."
Source Shipping Gazette - Daily Shipping News
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