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The man who got rid of Air Canada’s last freighter as CFO 15 years ago now says as CEO he wants to double cargo revenue – with the help of the airline’s new freighter fleet.
Decades ago Air Canada flew Boeing 727-100, Boeing 747 Combi (passenger and cargo sections on the main deck) and DC-8 cargo jets. All were eventually removed from the fleet in the 1990s, part of an industry trend in which most passenger carriers determined the cost structure and infrastructure required didn’t justify a separate freighter division in a market with regular peaks and valleys. The cargo division continued its job using the belly space on passenger aircraft.
But Air Canada reassessed its strategy during the pandemic. Cargo became such a strong source of revenue when passenger flying mostly stopped and scores of planes – some with seats removed for extra cabin storage – were repurposed as auxiliary freighters, that Air Canada decided to capitalize on market projections for robust e-commerce shipping growth and fewer widebody passenger jets.
Read more in an article from American Shipper.