Asian Cargo Airline Strategic Fleet Advisory
One of Asia’s largest air cargo operators was seeking to optimize its fleet management and procurement strategy. Given that most cargo operators rely on a finite supply of converted aircraft to fulfill their fleet development requirements, operators with growth aspirations are often required to aggressively and speculatively source large volumes of passenger feedstock to avoid missing out on sourcing the optimal fleet.
Alton developed a three-step framework in its approach:
- Freighter Fleet Dynamics and Benchmarking: Leveraging deep domain experience of the air cargo market as well as its extensive network of contacts within the industry, Alton delivered a baseline scenario study to the client, along with an assessment of fleet strategies of the client’s peers.
- Identification of Optimal Fleet Management Strategy: Alton developed a client-specific financial model, which allowed the client to run multiple long-term fleet development simulations. Following the simulations, which were informed by Alton’s suite of proprietary tools developed from real-world experience, Alton provided the client with a firm fleet development strategy recommendation.
- Strategic Partnership Assessment: Alton was subsequently re-engaged by the client to support the implementation of the fleet strategy which had initially been set out, which recommended collaborating with a strategic partner in establishing a fleet management joint venture. Alton led discussions with three prospective partners, culminating in a recommendation of the optimal partner to the client.
Alton provided the client with a unique understanding of market and aircraft dynamics which facilitated the establishment of a clear fleet development strategy, enabling the client to procure key stakeholder buy-in. Alton’s real-world experience provided the client with invaluable support and guidance as the engagement moved into the implementation phase.