Stop The Madness!

[FWAAA]

In 2004, AA had around $700 million in freight and mail revenue with a several hundred million dollar profit. That number will be growing this year, unfortunately cargo can only grow at about the same rate as wide body departures grows.

[post="242353"][/post]​

Didn't cargo take a big hit after September 11? IIRC, heavy mail is no longer allowed on passenger aircraft; only lightweight first class mail is allowed. FedEx has been picked to fly much of the USA mail volume.

The good news: AA is a very large cargo carrier. From a press release today:

About American Airlines Cargo

American Airlines Cargo provides more than 100 million pounds of weekly cargo lift capacity to major cities in the United States, Europe, Canada, Mexico, the Caribbean, Latin America and Asia. American provides one of the largest cargo networks in the world, with cargo terminals and interline connections across the globe.

http://biz.yahoo.com/prnews/050125/datu051_1.html

Not bad. Over 100 million pounds of lift weekly? That's a lot of capacity.

 

[aafsc]

In 2004, AA had around $700 million in freight and mail revenue with a several hundred million dollar profit. That number will be growing this year, unfortunately cargo can only grow at about the same rate as wide body departures grows.

[post="242353"][/post]​

I agree. But maybe AA can reallocate some of it's assets (aircraft) by converting them to freighters. Perhaps they should look into converting some 757s and/or some 767s to an all cargo configuration. When I worked in MIA, we moved massive amounts of freight mainly between South/Central America and large American and European cities; and I left MIA 7 years ago! The cargo side of the business has grown since then and is expected to grow even more at a faster rate. Given this growth rate, it would seem that some assets can be allocated to the cargo arena because it would be a greater return on investment/assets.

 

[Oneflyer]

Perhaps they should look into converting some 757s and/or some 767s to an all cargo configuration.

I promise, with absolute certainty, that the idea of converting aircraft to freighters is studied every year and every year the numbers just dont add up.

1. It is very expensive to convert planes to freighters. Realistically, the only option for convertion is the 762s, the problem there is (I believe) is that they don't have a full cargo door. Having to add the cargo door during conversion is even more expensive.

2. Once you've done that, you add a ton of capacity into the market that freight forwarders know you have to fill, the rates would decrease making all of your freight less profitable.

3. AA pays its pilots a lot more than freighter pilots make, the benefits, pension, etc....

 

[aafsc]

You make some very valid points. Hopefully, AA can place it's aircraft where they can produce the highest return.

 

[FWAAA]

It's been more than 20 years since AA retired its last freighter (747). Shortly afterward, Al Casey retired. AA's 707 freighters retired earlier, in mid-1981.

I'd expect to see AA order 744s for passenger service before a dedicated freighter fleet.

Neither has any chance of happening.