Nippon Cargo puts all expansion plans on hold
25 Jun 2009
Nippon Cargo Airlines said this week that it will freeze its fleet size of eight 747-400F freighter aircraft and defer all expansion plans until March 2012 at the earliest. The airline, which was Japan's first cargo carrier when it commenced operations in 1985, has deciding to drop plans to add sixteen 747 freighters by 2013 as previously planned.
In a statement company president, Tadamasa Ishida, said, "While the cargo industry has seen economic slowdowns in the past, what we are experiencing since the latter half of 2008 is proving to be unprecedented. Lack of consumer confidence worldwide has led to drastically decreased spending, resulting in lower demand for production. And without manufacturing production, airfreight will continue to suffer."
He explained that "adding new routes and expanding our fleet in a time when the markets are already at an overcapacity situation would be unwise and very unprofitable. So we are forced to rethink our strategy and define a new plan."
Though the company will remain focused on scheduled all-cargo operations, the statement said it also will operate charter services and lease aircraft.
