Dwindling fortunes of local airlines: Experts recommend cargo as bail out of global lows

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By Francis Ogwo

Air cargo operations have been recommended to local airlines as their best bet for surviving the restriction on passenger services and challenges on the economy.

This, according to experts was made, taking cues from Lufthansa, Kenya Airways and Air Canada which have been shuttling cargo with passenger carriers. This opportunity is not restricted in Nigeria.
Recently, the International Air Transport Association (IATA) released data for March air cargo performance showing a serious shortfall in capacity, making this option timely.

According to Google sources, demand globally dropped by 15.2% in March as compared to the previous year (-15.8% for international markets). Global capacity dropped by 22.7% in March compared to the previous year (-24.6% for international markets).

Despite this worrisome statistics, African airlines didn’t suffer much loss by the fluctuations in March and recorded year-on-year growth in international cargo tonne-kilometres (TCKs) fall by 1.2% following the positive annual outcomes in January and February.

The Africa-Asia market was the only trade lane which steadily posted growth in March, with volumes up, almost 10% year-on-year, with international capacity decreasing by 8.2 %.

Retired pilot and Aviation Security Consultant, Group Capt. John Ojikutu (rtd), said the lockdown directives from the Ministry of Aviation didn’t have restrictions on domestic airlines operating special flights, especially cargo freights, just like Air Peace is currently operating.

“I said this long time ago when the Lufthansa model came out on CNN. I advised that the airlines and Airlines Operators of Nigeria (AON) should meet the Nigerian Civil Aviation Authority (NCAA) for a redefined standard for the use of their passengers’ aircraft for local cargo operations and regional later,” he said.

“I said this then, to ensure that the extension of the crew and aircraft licences (by the NCAA) was not wasted. I am not sure what benefits they had from the extensions, and if there is any life left in the extensions. Instead of the operators looking out for government’s intervention funds, they have a better prospect of survival in cargo operations,” Ojikutu said.

Reports indicate that international markets account for 87% of air cargoes. Belly capacity for international air cargo dropped by 43.7% in March as compared to the previous year. This was partially offset by a 6.2% rise in capacity through expanded use of freighter aircraft, including the use of idle passenger aircraft for all cargo operations.

According to Google, Belly cargo is freight that is stored under the main deck of an aeroplane. The space is already available on the plane. Therefore, airlines are making major profits because the only added expenses are the handling, when loading, offloading, and the extra fuel cost of the added weight to the plane.

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