This week, Cargolux announced that it had added a new route to its network. The cargo specialist based in Luxembourg will now serve four Chinese destinations. The decision to move into the market will help Cargolux meet customer demand and hopefully provide it with opportunities for growth.
Cargolux heads back to China
With its exported goods valuing $2.49 trillion in 2018, China is a powerhouse for global consumables. Its export market is enormous, so it’s no wonder that it is a popular cargo destination.
Earlier this week, Cargolux announced that it would be adding another Chinese destination to its network. The airline already serves three destinations in the country; however, on September 18th, it said it would add its fourth. Shenzhen was selected as the newest Cargolux destination, which will begin imminently.
Cargolux plans to offer a weekly service between Luxembourg and Shenzhen with additional stops in between. On the way to China, the carrier will make a stop in Bangkok. On the return journey, Cargolux will fly to Bangkok again but also land in Budapest before returning to Luxembourg.
Better connections in a cargo hotspot
Cargolux already flies to three Chinese destinations for cargo:
- Lantau, Hong Kong; and
According to Airport Technology, Hong Kong International Airport and Shanghai Pudong International Airport are some of the busiest for cargo in the world. As a result, it is vital for Cargolux to capitalize on the market in China.
In a statement on its website, the Executive Vice President of Cargolux Domenico Ceci said,
“Shenzhen is an important commercial gateway, and this new frequency will allow us to better connect with customers in the region. This additional service between Europe and China will also offer seamless main-deck capacity between these two commercial centers.”
In a statement, the airline also went on to say that its presence would allow it to spot key opportunities for growth in the future.
Booming cargo market?
For carriers like Cargolux, the name of the game is the delivery of international imports and exports. It’s what they do. However, in recent months, many commercial airlines have also turned their attention to their cargo arm.
With a lack of international passenger traffic, cargo looks to be a consistent stream of income that airlines can really capitalize on. Most recently, SpiceJet began international cargo deliveries between India and Europe. The carrier converted an Airbus A340 to deliver 13 tonnes of cargo in August.
United Airlines also reported a 36% increase in cargo revenue for the second quarter of the year. Since mid-March, when the majority of international air travel stopped, it has operated 5,000 cargo-only flights. The majority of these exports have been medical and PPE supplies.
For Cargolux, its new venture in China should prove to be profitable and, from there, who knows where it could branch out to next.
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