This week unit load device specialist Jettainer is to announce a new North American customer and the ULD firm’s new sales director Don Jacobs has identified low cost airlines as a future market segment.
The new North American customer will likely be a major US airline with an extensive international network. Jacobs would not comment on who the customer might be. The prospect of new demand from low cost airlines is because investment in ULD compliant widebody aircraft, such as the Boeing 787 or Airbus A350, is expected. The low cost airlines, Pegasus Airlines, Westjet Airlines and flydubaiall provide cargo services.
Speaking to Air Cargo Week (ACW) last week, Jacobs says: “It is becoming a relevant item, low cost carriers are getting widebodies.” He spoke to ACW while attending a low cost airline event in London. Jacobs also referred to an unnamed North American carrier with a very large narrowbody fleet that has asked Jettainer about ULD management because it does not have experience of it.
He adds that Asia is the market showing strong growth and that region has been a focus for the company. He welcomed CHEP Aerospace Solution’s contract win with Cathay Pacific to manage its ULD fleet.
In Jacob’s opinion decisions such as Cathay’s to outsource ULD fleets will change industry minds and encourage executives to consider such a move.
Talking more widely about the attractiveness of container outsourcing, Jacobs described the ULD cost to airlines as relatively small and therefore something that is overlooked. He also says that airlines do not collect detailed information.
This makes any sales pitch about outsourcing ULDs, “very, very challenging. Even with imperfect data we can make the case.” One driver of ULD costs is damage, caused, according to Jacobs, by ground handlers that are not careful enough.
He sees the industry as young as none of Jettainer’s contracts are more than six years old. Another target region for him is the Middle East. Jacobs described Middle Eastern airlines as demanding in their needs.
Jacobs’ role at Jettainer was announced on 4 August. In aviation and logistics for 20 years, he has previously worked for DHL andBAA as Aberdeen Airport’s commercial director.