Shift across South America
Quito instead of Santiago. Kalitta Air has launched a service between Miami FL (USA) and Quito. The cargo carrier from Michigan (USA) sees the capital of Ecuador as a good alternative to less profitable Latin American destinations, despite the fact that if faces direct competition there.
Kalitta Air knows what it is doing. The carrier, which had three Boeing B747 freighters when it was founded in 2000, now has 24 B747-400Fs and eight B767-300Fs in its fleet and is ranked 13th amongst all of the global capacity providers (see also page 23 of ITJ 39-40/2022).
One of its B747Fs with the capacity to carry approximately 100 t now operates twice weekly flights between Miami FL (USA) and Quito (Ecuador). “This is Kalitta’s way of supporting Ecuador’s growing exports to and imports from the USA,” as Diego Iñiguez, CEO of Kalitta’s GSA, Choice Cargo, explained.
The decision to fly to and from Ecuador was preceded by market studies conducted by Choice Cargo. These took into account the peak season for domestic products. “Flowers are our main export commodity, and the sector is growing significantly,” according to Ramón Miró, president and CEO of Quiport, the operator of Quito airport.
Consolidation by St Valentine’s Day
In Miró’s opinion the timing of this latest launch is optimal, as the five remaining months of the year will serve to consolidate operations – until the start of the next peak season, in mid-January 2023. Should this business continue to bloom, then Kalitta can even consider adding further B747F flights.
The non-seasonal volume of goods on the route also seems to justify the use of the larger freighters. The export economy of the small country on the Pacific coast in northwestern South America offers more than just cut flowers – whose quality is appreciated worldwide and throughout the year anyway.
Concentration on Miami
According to local freight forwarders, another important reason for the launch of this new service lies beyond Ecuador’s borders. According to them, there is currently overcapacity in Santiago de Chile, which has led to a slump in rates there. Kalitta does not fear this in Quito in the foreseeable future, as is shown by its entry into the market there.
Since the end of July airfreight wholesaler Solent Air has also operated twice-weekly flights on the same route, on which it deploys a Skylease B747F (see also page 13 of ITJ 31-35/2022). Martinair is another regional competitor with a long tradition.