Specialist all-cargo operator Coyne Airways predicts that most of Europe’s legacy airlines will be forced out of the long-haul freighter business in the next five years as a result of increased competition and falling yields.
The difficulties passenger carriers are now experiencing began way before the current financial crisis, according to Coyne Airways’ CEO Larry Coyne.
“The combination carriers have suffered a series of setbacks including 9/11, SARS, the volcano dust cloud, and, most seriously, price-fixing charges,” Coyne says.
“They will increasingly concentrate on passenger cargo services, and the owners of long-range freighters, like the B747-800, will need niche carriers to help them optimize loads. We can tap into local hubs where a single destination is not able to support a freighter operation.”
Predicting a “new world order” in air cargo, Coyne says Asian and Middle East operators are taking over the long-haul routes that historically were the province of European airlines. Express operators meanwhile continue to target heavy cargo and develop new markets, while small, agile carriers are prospering in regional markets.
Coyne, which will celebrate its 20th anniversary next year, Is a specialist operator of scheduled cargo services to difficult-to-reach destinations including the Caucasus, Central Asia, Siberia and, more recently, Iraq and Afghanistan. It serves most of these destinations from Dubai, and offers connections from North America and Europe via a large network of interline partners.
“We believe that ease of doing business will be an important differentiator as we prepare to celebrate 20 years in the business,” Coyne says. “Performance, especially speed, will continue to be important. For example, we can move freight from Washington D.C., to Afghanistan in as little as two days.”