Story ID: 545
CargoLogicAir and Volga-Dnepr Pursue 'Premium' Cargo
By: Dan Catchpole
Caption: CargoLogicAir and Volga-Dnepr Airlines have a three-pronged strategy: Fly frequently, fly full and fly premium freight.
Word Count: 208
A Boeing 747-8 freighter’s advanced aerodynamics and four powerful GEnx-2B67 engines give it the lowest unit cost per mile in the cargo world, so long as it is full of freight and flying, CargoLogicAir (Cargo Village, Outdoor Exhibit 32) chief executive David Kerr said. “To make money with this plane, we have to fly it 15 hours a day” and make sure it is nearly full, he noted.

CargoLogicAir has a simple business plan: fly a lot, fly full, and fly freight that costs a premium to ship, which Kerr calls “business-class cargo.” That includes goods such as pharmaceuticals, which require controlled temperature and humidity and careful handling. Odd-sized items, oil and gas industry equipment, and aerospace goods are other freight that requires greater skill to ship—and brings in more revenue than commodity cargo.

“That’s how we make money with this airplane,” Kerr said. Generally, premium cargo brings in about 20 to 100 percent as much revenue as standard freight, he added.

CargoLogicAir’s business plan is being pursued by its Russian partner, Volga-Dnepr Airlines, which is showing off one of its Antonov An-124s alongside CargoLogicAir’s 747-8F at the Cargo Village this week at the Farnborough Airshow.