newstodate.aero
Aug 14, 2014 (newstodate): The shift in strategy by Icelandair Cargo a few years ago from en emphasis on freighters and transit cargo to belly-hold capacity to serve traffic to and from Iceland is paying off.
-We are seeing our export volumes rising and import cargo shipments are also growing, resulting in a very fruitful performance in 2014, says Mikael Tal Gretarsson, Icelandair Cargo Director Exports.
-In contrast to earlier, transit cargo is practically out by now as it did not generate any profits for us. We are pulling out from the ACMI business as well as this is also not profitable, and we are thus today operating only two Boeing 757-200 freighters on flights to and from Iceland while capitalizing instead on the airline's expanding route network and increasing frequencies offering ample cargo space in belly holds.
-Two new scenarios are now emerging, both of which may bring new challenges. One is the recent signing of a free-trade agreement between Iceland and China that may open up for new business in the longer term while having limited short-term impact. Another is the unfolding trade war with Russia following the row over Ukraine. Iceland is not included by the Russian embargo while for instance Norway is, which may drastically change the market situation and logistics concerning seafood exports to Russia.
-Which way developments will take is still too early to predict. But the situation will surely effect the air cargo industry as well, says Mr Gretarsson.
-We are seeing our export volumes rising and import cargo shipments are also growing, resulting in a very fruitful performance in 2014, says Mikael Tal Gretarsson, Icelandair Cargo Director Exports.
-In contrast to earlier, transit cargo is practically out by now as it did not generate any profits for us. We are pulling out from the ACMI business as well as this is also not profitable, and we are thus today operating only two Boeing 757-200 freighters on flights to and from Iceland while capitalizing instead on the airline's expanding route network and increasing frequencies offering ample cargo space in belly holds.
-Two new scenarios are now emerging, both of which may bring new challenges. One is the recent signing of a free-trade agreement between Iceland and China that may open up for new business in the longer term while having limited short-term impact. Another is the unfolding trade war with Russia following the row over Ukraine. Iceland is not included by the Russian embargo while for instance Norway is, which may drastically change the market situation and logistics concerning seafood exports to Russia.
-Which way developments will take is still too early to predict. But the situation will surely effect the air cargo industry as well, says Mr Gretarsson.