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FREIGHTER FORTUNES
01 September 2005
Air cargo is thought to be the most stable area of aviation, particularly in Asia but growth is slowing. Dominic Jones reports.
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Aviation; cargo; China Eastern
Cargo has had a reputation for being the most stable arm of Asia's air transport industry, and survived intact through the 2001 downturn, the Iraq war and the Sars crisis. With excellent market growth prospects and a less-volatile traffic environment in the cargo sector, many airlines and express companies are investing in Asian subsidiaries, with China highest on the list of target markets.
China already has the second-largest domestic air cargo market in the world, behind the US. But the same sort of stampede that is taking place in India's passenger airline market is threatening profitability and yields in the Chinese cargo market.
Cargo load factors for China Eastern Airlines have been falling over in the past year. "In its current interim results China Eastern reported that it had packed 52.5% of its cargo capacity, down from 57% a year earlier, as capacity increased at a faster rate than demand,"...
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