On Demand automotive freight.

[Groucho]

A question for those of you who fly in this segment of the industry.

Do the new "transplant" automotive manufacturers make use of on-demand
airfreight services? As I understand how the old YIP /DTW model worked, the freight companiew supported the various automotive production lines and that despite the cost of moving parts by air it was cheaper than allowing an auto assembly line to shut down.

Do the new foreign transplant factories make use of your services or are they better at managing their inventory?

 

[AC560]

Do the new foreign transplant factories make use of your services or are they better at managing their inventory?

The foreign companies use domestic charter, international charter, and regular scheduled services. I just booked a Lear charter for a foreign auto customer to move 200kgs of parts that had come in from a manufacturing plant in France on a commercial flight.

On demand is a part of managing the supply chain using it doesn't necessarily mean you are poor at managing inventory. You can save a lot of money by on demand as opposed to carrying inventory.

 

[landlover]

yes sir, i've hauled parts for bmw, nissan, honda and subaru.

 

[jobear]

They all call us















































eventually.

 

[RedGuy]

Anymore I seem to fly alot more for the "foreign" auto makers than the domestic. BTW there's not really a "automotive" on demand, we'll fly pretty much anything for just about anyone. Also fly alot of parts for appliance makers, tractor manufacturers, organs, aircraft parts, and the list goes on. I'd say that anymore it's probably only about 50% automotive, not like the good old days where it was probably more like 80-90%.

 

[pilotyip]

The old auto motive on-demand busisness is dead, it used to be used as a routine solution to the production process. Now days it is used as an emergency solution to the on-demand business. 10 years ago 95% of our flying was domestic OEM's, today it makes up less than 30%. This has been partially replaced by other supply chain solutions. Flying is down about 50% from 10 years ago. Tremendous pressure has been put on the remaining on-demand operators to cut costs, cost cutting comes out of training, maintenance and pilot pay.