News / Cargolux on the hunt for another 747F as ecommerce eats up capacity

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Cargolux is on the prowl for another 747 freighter, much like rival National.

The freighter operator’s new Boeing 777F fleet won’t begin to deliver, at best, until the end of 2027 (fingers crossed), but chief executive Richard Forson – normally cautious when it comes to capacity – thinks its 30-strong current 747 fleet may not be sufficient in the meantime.

“I am looking, if the ecommerce continues to grow at the rate at which it’s going, at whether additional capacity will be required by the airline, and if so, what kind of capacity we are going to be bringing in.

“If you’re going to bring in one unit only, you’ll want to bring in the same type of aircraft that’s already in the fleet. Otherwise, you’re going to cause a logistical nightmare for the one aircraft.

“We are waiting to receive delivery of the 777 freighters. But in the meantime, we could very well be taking an extra 747 into service.”

However, Mr Forson did acknowledge that the ecommerce market, as it currently stands, might not last.

“Everybody now is wanting to get capacity to service that market. But we are also cautious on how long the boom will last. I know there is intense lobbying in the US by local companies, and maybe in other parts of the world there will be issues raised regarding the amounts of ecommerce coming in.”

He added: “To fill up 30 747s daily, year-round, can be a challenge. I mean, there are certain markets that are not that great, while other markets are booming. So I think one has to be careful in terms of capacity. Sooner or later, the [down] cycle returns.”

Nevertheless, Cargolux is scouring the market for “the most appropriate opportunity”, although “there are a lot of people looking”. Mr Forson would rather buy than lease.

“Especially for widebody aircraft, lessors tend to want quite long-term leases. But if you do the economics, it’s probably better to buy, because we tend to use our aircraft heavily. We don’t have hundreds of aircraft in our fleet, where you can afford to have aircraft on lease returned. In the position we are in now, it’s obviously a lot more sensible for us to rather buy.”

The average age of Cargolux’s fleet, which is roughly half 747-8Fs and half 747-400Fs, is about 15 years, and Mr Forson doesn’t want to raise that particularly.

“We are looking for a freighter as young as possible. There are some pretty young 747-400Fs still being operated, and then obviously you have the 747-8F.”

In 2022, after a long think about whether to go with the A350F or 777F, Cargolux finally announced it was to buy 10 777-8Fs, with options on six more. And it seems likely that, as the younger 747Fs eventually retire, it will place another 777F order.

But with Boeing’s current “troubles” – is Cargolux concerned?

“No, I don’t think so. Ultimately, Boeing produces aircraft, and we did the analysis based on the products they were offering. I don’t think the recent news would really have changed our minds.

“I remain confident. I think they’re going through a tough time, but I’m fairly confident they are going to be resilient enough to get through this period.”

However, Cargolux has formed contingency plans in case the 777 deliveries are delayed.

“We are in constant discussion with Boeing about the timeline, but we have contingency measures. We have a certain buffer, in terms of numbers of cycles for our Rolls-Royce engines. And we could commit to heavy maintenance checks to keep the aircraft in the air.”

Any delay would also harm Cargolux’s emissions – as would an extra 747.

“Unfortunately, from a sustainability perspective, 747s do emit more CO2 than two-engined aircraft. But the 747 is a unique aircraft, and I think it is going to be sorely missed by the industry, specifically those involved in shipping outsize and heavy shipments.”