So You Want to Start an Air Freight Line
November 1946 Air Trails
love photos of the venerable old DC-3s in action, whether they be
performing the role of a passenger airliner, a cargo hauler, or
military utility vehicle in the designation of C-47. My only exposure
to a real one was after paying $2 at an airshow to walk around inside
one. Some day, before the last DC-3 is retired or converted to (ugh)
turbine power, I hope to purchase a ride on one. Back in the 1940s,
when this story was written for Air Trails, DC-3s were
revolutionizing the air industry on all fronts mentioned. If you
were a regularly flying air traveller, chances are you flew on a
DC-3 at least once. It is hard to imagine the following line, implying
that there was still some doubt in some peoples' minds about what
direction the aviation industry would move: "President of Air Cargo
Transport Corporation, oldest and largest all-freight line in the
business, Penzell is firmly convinced of the future of air transport
- so much so he has sunk his whole fortune and energies in it."
So You Want to Start an Air Freight Line
By Leo LeClair
Glowing Newspaper Publicity has Badly
Warped the Air Cargo Line Picture
you just got out of the Army; you were a pilot ill the Eighth Air
Force, you saw action in both the European and Pacific theaters,
you hold a pilot's and a mechanic's license, you have a few thousand
bucks saved up in flight pay, and you and your buddy think you'd
like to start an airline. An all-cargo line, you reckon, because
that's the newest wrinkle. You've been reading in the papers how
they fly everything from furs to furniture these days, and you figure
you'd like a piece of that pie in the sky.
Take it from
the men who know, bub - it shouldn't happen. It shouldn't happen
to anyone who isn't willing to throw three or four hundred thousand
dollars in the kitty and get exactly nothing in return. It shouldn't
happen to anyone who isn't willing to wait for at least two years
- years that will seem like centuries-for the business to start
rolling. It shouldn't happen to anyone who hasn't the patience of
sixty airborne Griseldas.
You're wondering why. You've been
reading the glamorous newspaper stories and you want an explanation.
You argue that the air transportation industry jumped ahead at least
a couple of centuries during the last crowded war years. That's
only a slight exaggeration, it's true. The Army's Air Transport
Command, the Navy's Air Transport Service, all undertook and successfully
completed tasks which would have been laughed off before the war
as something you'd see in the movies. The accounts of their, accomplishments,
carried in the nation's most trustworthy newspapers, were all quite
But to the hardheaded businessmen you meet when you
start your all-cargo magic-carpet, it doesn't mean a thing, son.
And the brutal reason is - cash, Cold, hard dollars, the same shekels
that meant profit or loss to any business before the war, spelling
the same words now that the war is over.
These dollars figured
only negatively in the terrific record's set and shattered by the
war's air transport - a fact too often glossed over today in attempts
to make exciting news copy. The business of commercial air transport
is to make money, having provided reliable and profitable service.
The business of the Army and Navy, indeed the business of all of
us during the war, was to win it. At any cost. There was no profit
to be made save that of. victory, which was profit enough.
In short, when General of the Army Henry Arnold got reports
of a Monday morning on the progress of war transport over the weekend,
he did not ask, "How much profit did we clear?" Or if asked it,
he meant how much did we save in lives, in time, in enemy losses.
Peacetime commercial operations are a different matter.
Victory is won. The people who undertake to run an airline these
days, whether for cargo or passengers, look at the ledgers. They
scream with pain, furthermore, when the story is written in red
The youngsters who have started air transportation
ventures since the end of the war have been misinformed on this
point as they have been on many others. And it amounts to nothing
less than downright robbery to let them think all they need is a
converted C-47 and they're on their way to an all-cargo heaven.
To run a profitable, customer-filled air freight business,
you need a lot more than an airplane. You need many airplanes -
a whole fleet of them. You need traffic men, maintenance men, freight
handlers, salesmen, advertising men, bookkeepers, research men,
and men from almost every other profession you ever heard of. You
need weather information, market, figures, cost figures, publicity,
shipping data, insurance. hangar facilities, landing rights, and
trucking. And, as if that weren't enough, you need office space,
radio facilities, and relief crews.
But the acquisition
of equipment and personnel is only the beginning. You can have the
finest crew and equipment in the world; and you still haven't an
airline. You haven't even begun yet, as a matter of fact, without
the next item (and this is the one that kills): customers.
It is no lie that the public has been sold on air transport. They
have been sold for a long time. They have also been sold on mink
coats and Cadillacs. But you can't conclude, therefore, that minks
or limousines sell like hot cakes. 'Tain't so.
the millennium, but certainly not in the present age, can air cargo
promise to fly freight for a nickel. It can't be done, any more
than diamonds can be bought at Woolworth's.
prevent aerial freight cars from being a valuable medium for perishables,
valuables, and quantity commodities, that's' true. Lobster, for
instance, highly perishable, is a proven ideal air passenger. So
are newspapers. and so are the fashions which smart shops now order
by air in quantity. The cargo list is exhaustive, but behind each
item is its peculiar suitability for air transport.
an increasing number of staples is joining the lists on air cargo
waybills, Eager Joes all set to attach their silver wings to box
cars should realize there is a large amount of freight which will
continue to be carried by rail for a good long time. Coal, for instance,
and other ores, oil and grains, or livestock or building materials.
No matter how efficient your airplanes, you are probably pretty
safe in assuming they won't ever come in very close contact with
grain elevators or coal pits.
There are exceptions to prove
the rule, of course, cases where a staple as ordinary as waste baskets
has to be flown to meet a rush order on a rail embargo. But you
can put your money on highway and rail transport for waste baskets
as a rule.
Customers ,to start with is point number one.
Point number two is customers for return loads. It is safe to say
that when Jason went after the Golden Fleece in his good ship Argo,
the angle that intrigued him about the whole deal was the utter
lack of whimsy in it. There was a return load to be had! Legend
doesn't record that Jason had a cargo to take with him on the journey
to the Fleece's home office, but it's even money he had something
or other besides ballast.
almost anything can be flown, but will it pay? Perishables of high
market value usually will. Plenty of other freight simply will not.
haven't changed. For the deal to go off, there has to he paying
freight both ways. In other words, it won't do you a bit of good
to have a year-long contract to fly flowers from Florida to Cincinnati
if you have to ferry back with an empty plane day after day. Flying
an empty C-47 is, for all practical purposes, just as expensive
as flying a full one. You'll never even break even.
to get down to specific cases. Take a look at the cargo lines now
in operation; ask their directors how the sledding is. To a man,
if their publicity staffs aren't putting words in their mouths,
they'll tell you it's rough.
Ask H. Roy Penzell, for example,
who is probably air cargo's most faithful disciple. President of
Air Cargo Transport Corporation, oldest and largest all-freight
line in the business, Penzell is firmly convinced of the future
of air transport - so much so he has sunk his whole fortune and
energies in it.
But he will be the first to tell you that
getting his flying freight cars into the profitable operations stage
was the biggest job he ever tackled. Questioned, he re-enacts' the
brow-mopping he did for the long months that passed before his ACT
Sky-Vans began to show a profit.
"I never saw such comprehensive research in my life as we did just
to find out how to operate," Penzell explains. "We had tables of
market figures that reached all the way up to the seventy-sixth
floor of our Empire State Building Offices. We had one of the best
pilots in the business. Dick Merrill, conducting tests for the most
suitable aircraft till he was eating the paper he wrote his results
on. ACT flew thousands of expensive miles on dead-head trips just
to try out all comers as possible cargo. Fortunately, we had, and
have, a lot of dough behind us. Otherwise we could never have carried
on the extensive tests we did.
"Maybe it's unbecoming for
me to attempt to ward off possible competitors, but I have no compunctions
about it. I can square myself by putting it this way: It's a free
country, boys, and the field of air cargo is a tremendous one. If
you want to jump in, go ahead. But may I suggest you bring a pair
of water wings to the tune of several hundred thousand dollars ?"
Penzell is a youngster himself, only thirty-five. The fact
that he is talking to other young men makes his understanding of
their problems greater. The fact that he has made himself a tidy
fortune in advertising and garment manufacturing bespeaks his acumen
as a businessman, His advice is worth the listening.
intends, and already has started, to make a killing with air cargo.
But not Without a lot of headaches, past and future. Take those
lobsters mentioned earlier, for example. Penzell's ACT had to undergo
several months of expensive experiment, fatal to any outfit unable
to absorb the costs, before they found the right container for shipping
live lobster by air. With the price an extravagantly pretty penny,
the test could just as well have laid a great big lobster egg. That's
the chance you have to take in the air cargo business, Penzell says.
The problem was that the lobster as it used to be shipped
by rail went in big fifteen-pound barrels packed with ice. It made
the trek from Maine to New York in a day, arrived in city markets
with thirty to fifty percent spoilage and a loss of flavor that
brought tears to the eyes of any Down Easter.
it would be advantageous to ship the lobsters by air. But no lobsterman
in his right mind was going to pay the air freight on heavy ice-packed
barrels. In any airplane, space and weight are commodities far too
precious to be squandered like that. For ACT, eager to get the lucrative
lobster business, the only thing to do was to design an entirely
new, lightweight container.
While the container must be
light, it had to be durable and sturdy. It had to be waterproof,
too, yet avoid being so tightly sealed that the lobsters suffocated
or even got overheated. And, above all. it had to be cheap, otherwise
shippers would have none of it.
A t the top of the container
there would have to be a removable tray , to be filled with ice
in case the plane was grounded some place where the temperature
was too hot. At the bottom there had to be another tray, under a
false bottom. This would be to catch the liquid which lobsters exude
when packed in the container. If they reabsorb this liquid it is
fatal to them. Hence, they cannot lie in it.
lobster men, and container manufacturers went into a huddle. Hair
was torn in big gory clumps for a couple of months, and the walls
were battered with the force of the heads which had been knocked
against them. Six, different sample containers were tried out. One
of them leaked, another one was too heavy. A third one was ideal
but it cost too much. Numbers four and five were too complicated
for packers to handle.
Number six finally hit the jackpot.
It weighed only four pounds, held fifty pounds of lobster, was cheap
to manufacture, could be used more than once. It worked like a mermaid's
charm, and is being used today to bring in the lobsters. And they
love it. They arrive in metropolitan markets still fresh and cantankerous,
full of seaside flavor. Not one dead lobster among them, either,
in all ACT's handling. of them.
The experiment was a success,
in short. But it cost plenty. Could you have taken that chance with
the airline you're contemplating? Could you have stood the shellacking
if it had failed, as Penzell warns, it might have? If you could
have taken that one without flinching, then turn to the garment
Convinced it had a gold mine to offer
to garment manufacturers in its fast delivery of fashion, a very
perishable item, ACT went after the apparel trade right from the
Digressing a moment, it's interesting to note how
ACT came to define fashions as a perishable. Starting from the premise
that air freight was particularly well suited to the needs of perishables
ACT soon found that the word did not apply to foods and flowers
alone. Perishables in the air transport sense of the word also meant
publications, since today's newspaper is valueless tomorrow. It
also meant fashions.
So it was that ACT salesmen went out
loaded with statistics to show the vast amounts of garments shipped
by rail from garment centers daily all over the country. They also
had figures to show the time lost in transit, the large and undisposable
stocks which clothing dealers had to have on hand, the losses from
these high static inventories; then," by contrast, the quick turnover,
the easy reordering afforded in air freight.
wound up at first with exactly nothing. Shippers, agreeing to the
veracity of the figures, nevertheless shook their heads when asked
for contracts. They were leery of the way their dresses and suits
would be packed on the planes. They wanted proof their merchandise
wouldn't get dirty, that it wouldn't absorb gas fumes, that a million
other airborne mishaps wouldn't befall their babies.
prove their point, ACT salesmen had to take the clothiers right
out to the hangar. Bug-eyed, the shippers watched as rack after
rack of clothing was transferred to other racks athwart the planes'
interiors", No boxes,. no packing. just hang the stuff in the planes
as you would in a closet.
They saw that the big flying freight-car
C-47's were dust-proof, yet ventilated to avoid any accumulation
of odors. They saw that the interiors were spotlessly clean, free
from all grease and dirt. They saw those racks. too, and that clinched
it. For they realized that boxes, an expensive item. would not be
necessary when they shipped by air. Furthermore. there. would be
no pressing necessary at the point of destination - another saving.
The dresses could be. taken right off the plane racks and hung in
the store, still unwrinkled.
Not only that but ACT had perfected
a drop system whereby the dresses hung at different heights on the
racks. In this way full space was utilized, top and bottom.
But suppose some snag had developed. Would you have had the
money to absorb the shock after spending all that amount on salesmen
and demonstrations and plane fittings? Because not all the experiments
are a success, Penzell always reminds you. In the beginning, for
instance, ACT thought it had an ideal passenger in the oyster -
until it was discovered that oysters hemorrhage when they fly more
than a couple of thousand feet up, and that the cost of pressurizing
to avoid this would make the oysters too expensive for the average
After you've conducted the expensive research
necessary to find out what you can and cannot fly, one of the next
problems you hit is that of alternative transport. Despite the miracles
of modern flying there are still times when the weather keeps your
planes grounded. In such cases, the shipper wants assurance of a
very concrete sort that substitute facilities are available. Before
ACT could begin flying the New York Times and the New York Herald-Tribune
to Washington, D. C, every night, for example, the publishers of
those twp world-famous papers had to know that a system had been
set up for shipping the papers by rail in the event of bad weather.
As the arrangement worked out, the late editions of the
Times and Trib leave Newark Airport every morning at three, reaching
the capital in time to hit the breakfast table, an attractive feature
for the advertisers in those papers. When it rains, the earlier
edition of the paper is sent on by rail. In order to have an agreement
such as this avoid disastrous snafu, though, you have to have good
weather information and equipment, and the financial reserves to
take the loss when the rain wets you down. In short, you couldn't
depend on a paper alone to keep your line going, no matter how steady
The crux of the warning which Penzell draws
from his own history is that while it has been successful, some
of its trial balloons were fiascos bad enough to set a smaller,
less well-heeled airline right back on its tail skid.
view is that there is a lot of money to be had in air cargo, but
because it is big, it demands big investments. Other air freighters
agree with him. Slick Airways, for example, has the Slick oil millions
behind it. National Skyways has heavy Wall Street backing. According
to Fortune magazine, these three are the leading triumvirate of
non-scheduled air cargo-ers.
As for the scheduled operators,
American Airlines, TWA, and the rest, the tremendous capital they
have behind them testifies to their awareness that air freight is
no small-potato operation. A big business, air cargo cannot be started
on a shoe string, any more than a railroad.
GI's home from
the wars deserve every break in the world. They should receive reliable
counsel on how to invest their savings. Those who know what they're
talking about agree that Vets should be told about air cargo as
a postwar living - about its liabilities as well as its assets.
Posted April 21, 2012
(Seize the Day!)
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is a lot of good information and there are lot
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