Air Transport's Cinderella Will Go to the Ball

The air cargo sector has long been the Cinderella of the air transport industry in terms of investment and innovation – but that is all changing, says Alan Peaford.

It is fair to say that the air cargo industry has been seen as the poor country cousin, often operating in the dead of night from airfields in the middle of nowhere in aircraft that may well have enjoyed a reasonable lifespan, carting passengers around the globe before losing their windows, seats and galleys.

But no more.

This year’s Farnborough Airshow was a case in point. Although pushed out to the western extremities of the show’s static park, there was a steady flow of visitors making their way to the see the huge giants of the industry, the Antonov An-124 and the Boeing 747-8F freighters, showing their cavernous bellies to the world.

 "Air cargo is back"

Air cargo certainly deserves some attention. It represents more than 35% of global trade by value, with around $7 trillion of goods being transported by air every year. While it is the big Goliaths that caught the eye at Farnborough, the majority of the perishable and urgent goods are carried in the holds of passenger airlines, giving a boost to airlines that IATA says is worth almost 10% of revenues – double that of the first-class segment.

And although there is over capacity in the market due to the expansion of the passenger business alongside an increase in the freighter fleet, there is plenty of confidence in the sector.

Indeed at Farnborough, Boeing was positively cooing over the prospects with its vice president of marketing, Randy Tinseth, claiming: “Air cargo is back”.

 “As well as the market returning, we have seen a boost in consumer confidence and, importantly, there is an improving balance in trade in and out of China,” said Tinseth.

Tinseth said there had been a “definite uptick in air cargo” over the past two years as a result of an economy that’s now going above trend, as well as a return in trade and a return in industrial production.

With a forecast of 4.2% annual growth, Boeing predicts a total demand for 980 new freighters over the next 20 years, 510 of which will be large aircraft such as the 747-8F and 777F, and 470 medium freighters like the 767-300F.  

That optimism was reinforced at the show, as Boeing secured 48 orders and commitments for the 777F and  five for the 747-8F.