Reference no: EM132387404
Assignment -
Background: Air Hong Kong is cargo carrier offering scheduled services in Asia for DHL express cargo. It operates between Hong Kong and 13 stations in Asia currently. The capacity is up to 730 million available tonne kilometers and 483 revenue tonne kilometers with 87% on-time performance in 15 minutes. It recorded an increase in profit in 2018 comparing with 2017.
At the end of 2018, Cathay Pacific acquired 40% Air Hong Kong's share from DHL International. Air Hong Kong become a wholly-owned subsidiary of Cathay Pacific operating 10 aircrafts up to 31st December 2018. At the same time, a new 15-year block space agreement between Air Hong Kong and DHL International was established to operated 10 dry leased Airbus A300-600F freighters and two wet leased Airbus A300 passengers-to-freighter converted to freighters.
Most aviation regulatory agencies foresee that the global cargo demand will rise in the next 20 years. Focusing on the company's capacity, cost of operation (Such as Maintenance, Leasing or purchasing), Global market forecast etc. This paper aims to an analysis Air Hong Kong's aircraft fleet acquisition strategy.
Research Question(s):
What is the decision making process of Cargo Airline Air Hong Kong in changing their freighter fleet from A300-600 to newer freighter?
Case study: The challenge of single fleet cargo airline with aging freighter model - A study on Air Hong Kong on changing their A300-600 fleet.
Research Objectives -
To investigate the process of changing fleet or acquiring new aircraft in cargo airline.
To understand the difference in operation and maintenance between the passenger aircraft convert to freighter and pure freighter.
To forecast the future of single aging fleet airline Air Hong Kong.
To forecast for growth of Global / Asian Freight.
Provide around 100 to 150 word for each question.