newstodate.aero
Aug 25, 2009 (newstodate): It is tough for a small carrier to compete with the large airlines in times of crises. But - it is feasible..
-In good times the large legacy carriers operating extensive networks are focused on big business and optimization of their capacity. This is different in times of crises, says Toomas Orukivi, Estonian Air cargo manager.
-In the current tough environment even the large players are becoming highly flexible and willing to adapt quickly to changing customer demands. It is basically a good thing, but it makes life even more demanding for a smaller player in the market.
-With a limited network and smaller aircraft up to the size of Boeing 737, a carrier like Estonian Air must always cooperate with at least one other carrier to handle intercontinental shipments from the USA or the Far East. And with at least two carriers involved, our price tag will often be higher than in the case of the dominating large carrier that will sell excess capacity at what is close to zero, or even negative rates in some cases.
-So what we can do to compete successfully is to offer extreme flexibility and a high level of service to our customers and keep our rates in line with the market.
-So far into 2009 the US market is performing rather well for us, thanks to a very efficient GSA in the US market. The US Volumes are actually almost on last year's levels, but the Far Eastern traffic is still severely hit by the crisis, and volumes are very low. We do expect even Asia to grow again, and we are confident that there is much cargo destined for the Baltic markets from Hong Kong and Taiwan, and Korea is also increasingly attracting our attention, says MR Orukivi.
-In good times the large legacy carriers operating extensive networks are focused on big business and optimization of their capacity. This is different in times of crises, says Toomas Orukivi, Estonian Air cargo manager.
-In the current tough environment even the large players are becoming highly flexible and willing to adapt quickly to changing customer demands. It is basically a good thing, but it makes life even more demanding for a smaller player in the market.
-With a limited network and smaller aircraft up to the size of Boeing 737, a carrier like Estonian Air must always cooperate with at least one other carrier to handle intercontinental shipments from the USA or the Far East. And with at least two carriers involved, our price tag will often be higher than in the case of the dominating large carrier that will sell excess capacity at what is close to zero, or even negative rates in some cases.
-So what we can do to compete successfully is to offer extreme flexibility and a high level of service to our customers and keep our rates in line with the market.
-So far into 2009 the US market is performing rather well for us, thanks to a very efficient GSA in the US market. The US Volumes are actually almost on last year's levels, but the Far Eastern traffic is still severely hit by the crisis, and volumes are very low. We do expect even Asia to grow again, and we are confident that there is much cargo destined for the Baltic markets from Hong Kong and Taiwan, and Korea is also increasingly attracting our attention, says MR Orukivi.