EVA Air will receive three new cargo planes within a year
Taiwan’s second largest airline, EVA Air, has developed its strategy to receive three new cargo planes in one year to maximize cargo volume and improve the financial situation devastated by the COVID-19 crisis, as it is the main reason for the unresilient international travel.
At the company’s shareholders’ meeting, EVA Air chairman Steve Lin explained that the company expects to get three Boeing 777-type jets in the fourth quarter.
Read more: Eva Air flight carrying 199 people hit by severe turbulence
Airlines’ operations have been complex since the outbreak of the pandemic, without a precise balance between aircraft capacity and passenger demand. The passenger airline network has been reduced to an absolute minimum, implying that there are not enough planes to meet the needs of businesses, governments and consumers. Although the flow of passengers has declined significantly, EVA Air has shifted its focus to freight shipments at a time when demand for air freight has stabilized due to large container capacity.
Lin said that compared to 2019, the number of planes in the sky is currently less than 50%, so there is not the relatively massive effect of the continued rise in fuel prices.
Lin further predicted that airlines have a long and difficult journey to cross to capture passenger demand, as the mutation of the virus continues and the effectiveness of the vaccination has not been proven to be predictable. So when will several countries relax the ban on international travel which remains the burning question?
The critical need for cargo capacity has been a boon for most airlines, as well as for EVA Air. Cash income decreased due to the loss of passenger income. The handful of passenger flights were not enough to avert financial disaster. Thus, EVA Air continues to opt for more cargo operations to continue to manage the global supply chain.
Lin added that EVA Air is regularly monitored with market conditions brought by COVID and will adapt to airline operations accordingly. On the other hand, the freight market will experience an increase in demand in the 4th quarter as many countries have resumed their economic functions. Along with this, the fourth quarter has always been a peak season for freight transportation and the launch of electronic products such as smartphones, Lin said.
There will be no discrimination in freight rates as the demand for freight space in the Asia-Europe sector is high.
The company said the rush for travel for North Americans resumed in June due to the return of Taiwanese students and others visiting friends or family or looking for vaccines. As Taiwan waited for enough COVID-19 vaccines to arrive, some residents moved to the United States to find work. Ticket sales continued to increase through July, with bookings up 27% from June. Seats were almost fully reserved in both business and premium economy class in both directions for July, EVA Air said. With international travel bans still in effect in many regions, cargo has become the main source of stabilizing funding for airlines, as Taiwan’s strong export performance spurs trade.
As international fares have increased, EVA Air assumes that there are unlikely to be low fares even when the borders of all countries are reopened for airline activities. This is because there is an additional cost associated with taking into account COVID-19 prevention measures on board, which will be added to passenger fares.
EVA Air will deliver 3 Boeing 777 freight planes, while the Boeing 787-9 passenger plane will be delayed until 2023. The airline has asked Boeing to postpone the passenger plane as they do not need a lot of air customer capacity.
The airline currently has five freighters. This is significantly less than 18 cargo ships owned by China Airlines Ltd., which is EVA Air’s domestic rival. Although the airline previously scheduled delivery of two of the three cargo planes in the fourth quarter, aerospace giant Boeing Company has agreed to dispose of the third cargo plane by the end of 2021.
As of March 1, 2021, the government of Taiwan has allowed international passenger transfers. EVA will make arrangements to serve this group of travelers at Taiwan Taoyuan International Airport.
The freight load factor rose to 94.6% in the last quarter, up 16% from a year earlier, said EVA president Clay Sun. EVA’s financial report found that $ 1.7 billion of its revenue in the last quarter came from passenger business, 62% of which came from North American routes. The load factor is down to 17%. Meanwhile, $ 15.2 billion in freight revenue was advanced in the last quarter; the total cargo weight climbed to 43 percent to 200,000 tonnes, the company reported.
EVA Air will release a new flight schedule in August, starting a total of 30 flights in one week. Of these, seven flights will be on the Los Angeles and San Francisco routes, five flights to Seattle and four weekly flights on the New York route. The airline will serve Chicago and Vancouver twice a week while there will be only one flight on the Houston and Toronto routes.
EVA Air has launched its Cargo website, which consignees, freight forwarders can use to access shipment status and flight schedules. As the trend of online shopping has exploded with substantial growth in the demand for air mail delivery, this has created opportunities for air freight. Users can also check the arrival and departure of specific date flights.
Launch of the air freight market
In this time of pandemic, air freight has become one of the essential links of business in the world. The COVID crisis has shown the public the strangest sight, the plane throwing itself into the almost deserted airport, cabins overflowing with cardboard boxes, instead of passengers. The sky for air passengers is hungry for travel bans. In this scenario, the air freight market exceeds its capacity for strong demand, especially for personal protective equipment (PPE) and vaccine doses.
The crisis has increased the need for medical supplements. The sharp drop in flights has seen freight forwarders scramble to move urgent cargo shipments – not just PPE, medical items and doses, but also time-critical supply chain products.
Even after the eventual resumption of airliner service in the coming years, demand for freight aircraft will remain high.
It’s not that EVA Air has developed cargo planes just for this situation. The freight market has always been EVA’s interest, but with the COVID situation, the freight operation has attracted more attention, allowing more shipments to be delivered before passenger demand returns. Adjusting the freight business model will help EVA Air keep more planes in the sky.
Learn more about EVA Air
EVA Airways is an international airline in Taiwan. It is based at Taiwan Taoyuan International Airport. EVA stands for Evergreen Airways, as this airline, since its inception in 1989, has operated passenger and freight air services to more than 40 international destinations on four continents of Europe, Australia, Europe and North America. North. This large private airline is rated 5 stars and one of the largest airlines in Taiwan. “Share the world, fly together” is its slogan.
In addition to passenger air services, it provides air freight forwarding, ground handling, airline engineering and catering services. EVA Air Cargo works with Evergreen’s global maritime network to offer cargo transportation by land and sea. It was ranked 15th safest airline in the world in January 2018 due to its lack of fatalities or fatalities. hull losses. Its fleet includes both Airbus and Boeing aircraft, including Airbus A330, Boeing 777, AirbusA321, Boeing 787, Boeing 777, ATR72. They are all used to service both passenger and freight routes.
Boeing 777 freighter for EVA AIR
The Boeing 777 freighter is the world’s largest twin-engine cargo carrier. It is very efficient, with a maximum capacity of 102 tons, and can fly up to 5,000 nautical miles. The cargo ship is environmentally friendly and fuel efficient, offsets carbon emissions to a low point.
EVA Air can use these planes to bolster its fleet from Taiwan to all North American destinations, as activity is booming on these routes.
In 2017, EVA took delivery of its main Boeing 777 cargo planes. The airline fitted it with GE90-115B turbojets to reduce maintenance costs. In September 2020, EVA cut its seven Boeing 787-10 Dreamliners due to the drop in passenger numbers. However, they were replaced by three 777 F cargo planes and four 787-9 small passenger jets.
EVA Air once again has 777 freighters to modernize its fleet of world-class cargo planes. EVA Air plans to increase its operational twin-aisle fleet to over 60 jets by the end of 2025 if all goes according to plan.
Perspectives are brilliant for EVA air with an adjustment to market trends and more aircraft adding to power its fleet operations to several global destinations.