“The operation of Bluebird Cargo was successful in 2006 and returned satisfactory results.”
Bluebird Cargo currently operates seven freighter aircraft, two B737-400s and five B737-300s. General cargo services are offered to freight forwarders and large shippers to and from Iceland on daily, scheduled services. In addition, Bluebird Cargo operates several aircraft on a wet-lease basis for other airlines and for some of the major global express parcel service companies. The operation of Bluebird Cargo was successful in 2006 and returned satisfactory results. The company purchased two B737-400 aircraft in the second half of the year, and initiated a process of converting the aircraft to pure freighters in November. The two aircraft will be back in revenue-generating service in the spring of 2007.
Bluebird Cargo has carved out a niche for itself in operating short-haul freighter flights in time sensitive markets within Europe. As such, the company enjoys a fairly favourable market position. The target customer group consists of express service companies, post offices, and airlines operating their own overnight networks within Europe.
The air cargo sales function of Bluebird Cargo in Iceland dates back to 1994 and through the year the company has focused on providing local sales and marketing representation for airlines such as Cargolux Airlines, UPS Air Cargo and others. Through these companies, Bluebird Cargo has obtained valuable access to the world-wide air cargo networks of some of the world’s leading air freight companies. Using these networks Bluebird Cargo is able to offer the Icelandic market reliable and fast access to and from almost any major destination in the world.
Most leading experts agree that the global air freight market will grow rapidly in the coming years. Air freight is projected to grow considerably faster than the passenger side of the industry. The future growth strategy of Bluebird Cargo is based on a two-pronged approach to the market. On the one hand, the company will continue to grow with the Icelandic air freight market, building on the strengths outlined above. On the other hand, there is tremendous potential in providing aircraft and air freight capacity to the various segments of the air freight industry, including wet lease services to other airlines, contract operations for freight forwarders, and dedicated services to postal services and express parcel corporations.