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Condor rebrands cargo products ahead of offering expansion

Leisure airline Condor has rebranded its air cargo products as part of efforts to provide clarity on what each of the services provides and ahead of an expansion of products on offer. The airline announced this week that it is introducing a "unified structure" for its cargo products to make it clear which transportation requirements each product is designed to meet. From 1 November, standard freight will be carried under JUSTmove product, while its pharma services will be known as moveCOOL, perishables will become moveFRESH and express services will be called moveFAST. Condor launched its express product in May. Thilo Schäfer, director of cargo at Condor, said: "With this new product structure, we are giving our offering a clear framework and tailoring it to our customers' different requirements. "At the same time, we are laying the groundwork for the systematic expansion of our cargo portfolio. The new structure makes it easier for freight forwarders and shippers to navigate our offering and gives them a clearer picture of the solutions available. "This is an important step in making even greater use of the potential of our international route network for our cargo business." Condor Cargo offers freight capacity in the cargo holds of all Condor passenger flights, connecting destinations in Europe, North America, the Caribbean, Africa and Asia. The airline also offers capacity through interline partnerships and a road feeder network.

Air cargo boom collides with the rising cost of aviation

Global economic growth and the particular strength of the technology and manufacturing sectors have left the airfreight industry riding high. That said, the sector finds itself uniquely pinched by factors outside its control. Those factors, of course, include runaway fuel prices. But cargo airlines, aircraft lessors and freighter conversion shops are also reeling from the surging expense of acquiring aircraft and engines, and then maintaining those assets. Lease rates for older Boeing 777-300ERs - prime candidates for cargo conversions - have increased $200,000 monthly in the last two years, partly because passenger airlines are holding on to such types, Anna Kopinski, director of asset valuations at mBa Aviation, said last week at the Cargo Facts Symposium in Nashville. Another example: the oldest 777s were worth about $30m at end-2024. "Now, you can't get a half-time aircraft for anything under [$40-45m]," Kopinski adds. "That's a lot of capital." The inflated values come amid a period of strength for airfreight. "Cargo demand is outpacing cargo capacity," Pooja Gardemal, managing director of aircraft appraisal firm BK Associates, said at the event. Airfreight demand increased 4.4% year on year in August, buoyed by a rising manufacturing sector, IATA reported in its most recent monthly air cargo market analysis, with growth concentrated in North America and Asia Pacific. Meanwhile, Airbus predicts airlines over the next 20 years will need 2,670 additional freighters, including 1,140 small, 860 midsize widebody and 670 large widebody jets, according to its 2026 Global Market Forecast, released last week. "It has been a very robust year," says FedEx Logistics president Marcus Balzereit, citing "immense growth" in the manufacturing, healthcare, technology, automotive and aerospace sectors. Meeting that demand while making the economics work is the trick. George Dimitroff, head of valuations at fleet consultancy Cirium Ascend, says midlife 737-800s are now changing hands for about $20m. Paying that much and then converting the aircraft to a freighter is economically feasible, he adds. Engines are driving much of the price spike, a consequence of high demand for, and limited supply of, new engines, used engines, spare parts and maintenance capacity. Even "unserviceable" CFM International CFM56-7Bs, which power 737NGs, have recently been selling for $7m, "which is unheard of in my career", Dimitroff says. Parts shortages are so acute that MTU Aero Engines North America this year purchased 15 GE Aerospace CF6s solely for access to the engines' life-limited parts, says vice president of sales and marketing Les Cronin. Maintenance expenses are equally frustrating. "We've seen maintenance costs rise incredibly," says mBa's Kopinski. Have a Rolls-Royce turbofan that needs overhauling? Expect to wait one year for a maintenance slot, then another four months for the work to be completed, says Titan Aviation Leasing's vice-president of technical, Juan Zapata. Some maintenance shops are needing more time - six months - to complete overhauls, or about twice as long as previously, says Western Global Airlines chief executive James Neff. Want to scoop up an engine from the aftermarket? Good luck. "We're starting to see this continuous shortage of engines available in the market", which "drives up the prices", says Zapata. Challenge Group, which owns several cargo airlines, has so far been successful in acquiring aircraft already equipped with engines, but the severity of the problem leaves operators facing the prospect of acquiring engine-less airframes, then later sourcing turbofans, says Challenge chief commercial officer Or Zak: "There's not much more that we can do." Prices will likely remain elevated and capacity will remain tight for the foreseeable future, until aircraft manufacturers accelerate new-jet production. Then, more used aircraft will become available and prices will ease, executives say. "I think we're looking at post-2030 before you see feedstock values for the 777-300ERs coming down to a point where it's once again a viable [conversion] option," says Kopinski.

Challenge Group adds new US-Europe-India freighter operation

The Challenge Group is adding a new widebody freighter service connecting India, Belgium and the US. The service will utilise a Boeing 777 freighter and operate on a loop of Navi Mumbai International Airport (NMI), Liège Airport (LGG) and Chicago Rockford (RFD). The twice-weekly service will start on 4 November and follows the group's decision to temporarily suspend freighter operations at the Indian airport due to operational challenges. Challenge added that in Liege, it can offer a network of approximately 1,500 truck movements per month for onward access across Europe. The service will primarily cater for pharmaceuticals, oversized and out-of-gauge cargo, with plans to introduce live animal (AVI) transportation in the future. "Chicago is a strategically important market, serving a broad range of industries that depend on reliable international cargo connectivity," said Or Zak, group chief commercial officer, Challenge Group. "By introducing this service through Rockford, we are creating additional opportunities for customers moving specialised cargo between India, Europe and the US." The new service also supports RFD's ongoing efforts to expand its international freighter network and establish the airport as a gateway for specialised cargo entering the country, Challenge said. "This new service is a direct result of our continued efforts to attract international freighter operators to Rockford, particularly the work we have undertaken to establish the airport as a leading cold chain corridor into the United States," said Zack Oakley, executive director, RFD. "We see significant potential to grow this partnership beyond the initial twice-weekly service, including increasing flight frequencies and supporting AVI transport." The airport pointed out that RFD is located within approximately 40 miles of animal quarantine facilities, at a comparable distance to Chicago O'Hare International Airport (ORD), and is in the process of securing approval from the United States Department of Agriculture (USDA) to support AVI shipments. "RFD is well positioned to support this service as it develops, with cargo-focused infrastructure and the capacity to accommodate specialised freight," said Rene Espinet, vice president - cargo business development, RFD. "Challenge will have access to the wider Chicago market, combined with the efficiency, flexibility, and reduced congestion of a dedicated freighter airport." RFD is also coordinating dedicated temperature-controlled trucking capacity, providing onward transportation to destinations in the Rockford area and warehousing facilities in Chicago. The announcement was made during the TIACA Air Cargo Forum.