RIP Cargo B carrier fails and ceases operations
30 / 06 / 2009
BELGIAN all-cargo airline Cargo B has ceased operations after a long struggle for survival. Falling rates and yields in its key markets and the recent rise in oil prices proved the final straw as the cash simply ran out.
Niek van der Weide, executive vice-president commercial for Cargo B told Air Cargo News that they had made the decision to stop operating after recent talks with potential investors failed. “It is, unfortunately impossible to continue”, he said, adding that it was a very sad day for all the employees who had put in a tremendous amount of effort to make the airline a success.
The two Cargo B aircraft were ferried to Amsterdam Schiphol as last-ditch rescue attempts were made to continue the operations, but at an emergency meeting on 1 July the decision was taken to end operations.
Van der Weide confirmed that the two aircraft will be returned to lessor Nippon Cargo Airlines and a decision as to whether the company will be placed into administration or an alternative solution will be made by the board.
Nippon Cargo Airlines owner NYK Line purchased 10 per cent of the company last year giving the company an additional €7 million (US$9.8 million) to ensure its survival over this difficult period. However, the money ran out and the airline was forced to close its doors.
For the full story please see the 10 July Air Cargo News. For the story of how one associated company is dealing with Cargo B’s collapse go here.