St. Maarten: InterCaribbean eyes islands’ cargo success By Seth Miller.

Air cargo remains a strong market and carriers around the globe are looking for a piece of that desperately needed revenue. InterCaribbean Airways, based in Turks & Caicos, is among them.

The airline intends to launch a dedicated fleet of cargo aircraft serving the islands. It also hopes to further develop the region's air cargo market, with a focus on e-commerce and small business sales, writes Seth Miller.

The cargo opportunity comes at a convenient point in the company's 30-year history. It has grown from a niche operator serving Providenciales to a network carrier with hubs on four islands across the Caribbean. As its connecting passenger traffic grows it needs larger aircraft to support the demand. With an updated fleet of ATR42 aircraft joining the operation the company now needs to come up with a plan for its smaller Embraer E120 Brasilias.

InterCaribbean E120 Brasilias headed for a new role.

They are relatively older aircraft, pushing 30 years in many cases. The market for smaller, used propeller aircraft is limited today. But the company owns them outright and has a cadre of pilots, maintenance engineers, and other staff on hand to help keep them flying.

With an incredibly low trip cost factor, a conversion to cargo operations could prove spectacularly profitable. Speaking at the CARIBAVIA conference CEO Trevor Sadler identified this as a low-risk opportunity to take advantage of the company's expanding network and influence.

The general increase in dedicated cargo flying of the past 16 months is only part of why Sadler wants to make the move into cargo. He also sees an opportunity specific to the Caribbean. To that end, InterCaribbean will launch the "Marketplace" platform for small businesses in the region.

Shipping goods among the Islands today is either very expensive or very slow; sometimes it is both. Sadler cited examples of shipping costs often exceeding the value of the goods being produced on one island and purchased on another. He hopes the new Marketplace – thanks to a dedicated, lower-cost cargo fleet - will reduce those shipping costs and facilitate significant growth in commerce among the islands.

InterCaribbean is not alone in these efforts, of course. But given its access to multiple hubs in the region and the flexible fleet options, it appears well positioned for success.

Seth Miller has over a decade of experience covering the airline industry.  With a strong focus on passenger experience,  Seth also has deep knowledge of inflight connectivity and loyalty programmes.  He is widely respected as an unbiased commentator on the aviation industry.

He is frequently consulted on innovations in passenger experience by airlines and technology providers.

seth@paxex.aero
https://twitter.com/WandrMe/
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https://www.linkedin.com/in/sethbmiller

BlueSky Business Aviation News | 24th June 2021 | Issue #611

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