Air Hong Kong Aircraft Acquisition Strategy Assignment Help
1. What is the decision-making process of Cargo Airline Air Hong Kong in changing their freighter fleet from A300-600 to newer freighter?
The decision making the process of Cargo Airline, Air Hong Kong in the change of freighter fleet from the A300-600 to the newly built freighter because at the end of 2018, a 40% of Air Hong Kong's share was acquired by Cathy Pacific, and the subsidiary was taken from DHL International. A 15-year block space agreement was also made between Air Hong Kong and DHL international. This was established between Airbuses which 10 dry leased fleet of A300-600 freighter. The capacity will increase from the next years due to the number of capacity, operation, and cost. The decision has been taken in such a way that old freight is becoming aged and the costs of maintenance are increasing day by day. Therefore according to Air Hong Kong, it is better to install new freight for better services (Berger, 2016).
2. The challenge of single fleet cargo airline with an aging freighter model – A study on Air Hong Kong on changing their A300-600 fleet.
The main challenge is that the capacity, cost, and operation are increasing in the cargo services of Air Hong Kong. This is the only reason Air Hong Kong has collaborated with DHL International. Air Hong Kong, will take a lease without purchasing immediately. Therefore single type will be taken for specific business purpose. Since Air Hong Kong is service for the Asia region, therefore, the Airbus type aircraft is more suitable for the freighter to be converted as freighters.
This is the only reason carrying an increased number of cargo in a number of ports will need a newer freighter model. The old model that is A300-600 is not sufficient enough to carry larger pressure and it can lead to a huge crash. The only reason behind this is that the capacity is increasing so the new model needs to be with high load carrying capacity in order to meet the increasing needs of cargo services of Air Hong Kong freight services (Li, 2015).
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