Hey everyone! Just read that K-Mile Asia is ramping up their cargo ACMI operations. They're doing this even with the crazy fuel price fluctuations going on right now. Gotta say, I find it pretty bold - or maybe they know something we don't?
For those who aren't familiar, ACMI stands for Aircraft, Crew, Maintenance, and Insurance. It's a lease type where the lessor provides the aircraft and crew, while the lessee covers other operating costs. Seems like K-Mile Asia is banking on more demand for cargo despite the fuel situation. Guess it makes sense with how e-commerce and logistics have been booming.
But, with fuel prices being so unpredictable, I wonder how this will affect their costs and pricing. Are they hedging fuel prices or just rolling the dice hoping for stable rates? Also, do you guys think this is a trend we'll see more of - cargo airlines taking bigger risks to meet demand?
Curious to hear your thoughts! Does anyone have more insight into how fuel volatility might impact these kinds of operations long-term? Let me know what you think!
For those who aren't familiar, ACMI stands for Aircraft, Crew, Maintenance, and Insurance. It's a lease type where the lessor provides the aircraft and crew, while the lessee covers other operating costs. Seems like K-Mile Asia is banking on more demand for cargo despite the fuel situation. Guess it makes sense with how e-commerce and logistics have been booming.
But, with fuel prices being so unpredictable, I wonder how this will affect their costs and pricing. Are they hedging fuel prices or just rolling the dice hoping for stable rates? Also, do you guys think this is a trend we'll see more of - cargo airlines taking bigger risks to meet demand?
Curious to hear your thoughts! Does anyone have more insight into how fuel volatility might impact these kinds of operations long-term? Let me know what you think!