Overcapacity and irresponsible airline hubs

OVERCAPACITY is continuing to stunt growth in air cargo, say industry leaders. 
Alv Hill, interim executive vice-president of OAG Cargo, states: “There is little doubt that the air cargo industry is experiencing a rocky ride at the moment with the spectre of overcapacity and all its consequences looming.” 
Swiss World Cargo’s chief cargo officer Oliver Evans notes another contributory factor is the growing number of airlines that pursue a growth strategy in a vain race to establish the “hub-of-all-hubs” in their country. 
“While some of these newly-large players are highly respectable – and respected – competitors, others are novices who scarcely understand the value of the belly-hold capacity they deploy, and know even less how to build their business and turn an honest penny,” argues Evans.
“With ‘products’ on their shelf (which are not much more than glossy brochures), they go about with ludicrous pricing and shoddy quality, disrupting supply chains the world over.”
The cost of overcapacity: see the next issue of Air Cargo News (17 December 2012)
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