Source: Cargonews Asia Author: Ian Putzger 05/26/2008
Subject Concerned: Aircraft Aircrew Airlines Human Resource Cargo
With four of its six 747-400ERFs in operation and the pilot shortage issue resolved, Jade Cargo International is set to take off for new destinations in Europe and the Asian region.
After treading water for a year, the all-cargo airline is finally back on the expansion path. As the Shenzhen-based airline is getting close to having a full complement of pilots, its idling freighters are headed for the runway to launch new services to Europe and within the region.
After a flying start, Jade's expansion plans were forced into neutral a year ago as a result of unexpected staffing problems. The carrier took delivery of its final two B747-400ER freighters but found itself unable to put them into action on account of a pilot shortage.
Against this background, Jade's first chief executive officer left and was replaced by Kay Kratky, a former 747 pilot who was senior vice-president of transportation management and flight operations of Lufthansa Cargo prior to his move to Shenzhen.
At that time, Jade had 22 pilots in service. Today the number is close to 100, of whom 75-80 are fully licensed in China, according to Reto Hunziker, executive vice-president of sales and marketing.
He added that Jade benefited from the collapse of Hong Kong-based budget airline Oasis, as it could snap up about 20 of Oasis' experienced pilots.
Those pilots have to obtain certification in China before they can fly for Jade, but this should not take long, Hunziker reckoned. In the meantime, Jade is hiring flight crews from Air Atlanta and Evergreen to keep its operation ticking.
By early May, Jade had four of its six 747-400ERFs in operation, and the full fleet should be in action in June, Hunziker said. This finally enables the carrier to add destinations to its network.
On June 1, Jade is going to start twice weekly flights from Shenzhen to Budapest, Hungary, and Manchester, to be followed by a Shanghai-Brescia-Barcelona service, which will operate three days a week.
In August, Jade plans to launch flights to India and Vietnam. The former operation will be routed from Shenzhen via Shanghai to Chennai, returning to Shenzhen, while the Vietnam service will originate in Tianjin and serve Ho Chi Minh City, returning to Shenzhen.
The Vietnam service is already up and running on a regular charter basis. Jade is currently applying for traffic rights for scheduled service, Hunziker said.
The entry into Chinese markets other than its home base has raised some eyebrows, given the carrier's ownership structure, which includes Shenzhen Airlines.
"We want to connect the main production areas in China to Europe," Hunziker explained.
"Our main hub will always remain in Shenzhen," he stressed, but added that the way capacity and yields out of China have developed over the past year it is important to look at origin points besides the Pearl River Delta.
The emphasis on European connections suggests that North America is not a priority at the moment.
Originally, Jade management had planned to launch its first transpacific service last summer, flying from Shenzhen via Shanghai to Vancouver and on to Houston.
However, the yield situation across the Pacific and the weakness of the US market has shifted the focus to Europe.
"We'll concentrate on Europe first; then we can review the situation," Hunziker said. He does not anticipate US flights to kick off this year.
Another aspect that is further down on the totem pole is service diversification.
Jade offers only a general cargo service but "we may introduce a premium service later. For now, our focus is on building the network," said Hunziker.