06/01/2023

Freight Waves / Eric Kulisch / June 1, 2023

As the U.S. home base for Amazon Air and DHL Express, Cincinnati/Northern Kentucky International Airport (CVG) moves large volumes of express shipments. Now the airport is positioning itself to attract general cargo carried by passenger and freighter operators interested in bypassing crowded international gateways for faster turnarounds.

Officials have arranged to process significant amounts of cargo to be carried by a new British Airways (LSE: IAG) passenger service and recently struck a deal with a private company to develop an air cargo warehouse facility with airside access on 4.5 acres of airport property.

British Airways is scheduled to launch nonstop service between London Heathrow and CVG on Monday. Flights will operate five times a week utilizing Boeing 787-800 Dreamliners, switching to four times weekly on Boeing 777-200 aircraft during the winter season. Airline officials were drawn by the fact that Dayton’s population bleeds into the Cincinnati area and there are millions of people within a two-hour drive of CVG.

British Airways selected Miami-based Alliance Ground International, a fast-growing airport services company backed by private equity, to provide warehousing and pallet buildup/breakdown and sorting. AGI is occupying a 15,000-square-foot building where staff will bring cargo offloaded from British Airways flights and send out exports.

The only other carrier that provides trans-Atlantic service from CVG is Delta Air Lines (NYSE: DAL), which flies to Paris.

Although the route is ostensibly for passenger business, cargo opportunities likely factored into British Airways’ decision too. The 787-800 has room in the lower hold for more than 16 tons of cargo. Larger 777-200s can carry 22 tons of cargo and baggage. Stakeholders anticipate the new service will draw substantial interest for goods movement.

FULL STORY HERE