Explore the nordic global airlines
The nordic global airlines story begins in 2011, when the company started as an all-cargo airline based in Finland and included Helsinki Airport as part of their global operations. nordic global airlines operated their fleet of MD-11F aircraft until 2015, when they closed down due to market oversaturation and a decline in air cargo rates.
There are ambitious airline start-ups that capture the attention of the world of commercial aviation, including nordic global airlines and the myriad other cargo transport companies. nordic global airlines represents an idea that stressed the importance of the establishment of a logistics hub in north Europe.
nordic global airlines opened in 2011 with the aim of covering markets in north Europe and the rest of the world in the African, Asian, and North American continents. Moreover, the start-up airline planned to offer the international freight community the use of rapid and cost effective supply chain services.
Although they had an experienced team and some level of financial backing, they were still susceptible to the volatility of the international logistics market. Of particular interest was the oversupply of cargo space that resulted from competition in the market. The quick closure of nordic global airlines served as a harbinger of the fragile economic conditions for international air freight.
When was nordic global airlines founded?
nordic global airlines was founded in 2011 as a partnership between major Aviation companies and some big investment companies. Those companies included the Finnish national airline Finnair, Neff Capital Management, the mutual pension insurance company Ilmarinen, and the Finnish company Tapiola. The diverse backing gave Nordic Global the ability to have extensive knowledge of the industry, and have the ability to integrate and use already established logistical networks, and have reliable financial backing.
nordic global airlines received its Air Operator Certificate (AOC) via the Finnish Transport Safety Agency and started regular flight operations in August of 2011. nordic global airlines, in its early stages, offered ad-hoc charter flights and wet-lease services (ACMI—Aircraft, Crew, Maintenance, and Insurance) to other logistic companies and airline companies. This business model was flexible and offered Nordic Global the ability to start generating profits while continuously improving its image within the industry as a reputable cargo airline.
Being strategically located at the Helsinki-Vantaa airport, nordic global airlines took advantage of Helsinki being the most optimal hub to bridge transcontinental freight between North American manufacturing hubs and Asian markets, where the consumer markets are growing rapidly.
What fleet did nordic global airlines have?
nordic global airlines operated only one type of aircraft, the McDonnell Douglas MD-11F. The airline operated a fleet of four of this model. The MD-11F was a freighter dedicated variant of the McDonnell Douglas MD-11 and had a long reach (flying distance) and large capacity which made this aircraft fit for nordic global airlines needs.
The MD-11F has a three-engine design. This design gives the range and thrust to cover long distances carrying large payloads without the need for intermediate stops to refuel. Some of the aircraft owned by the Finnish carrier were leased from Finnair, who were then in the process of retiring their MD-11s to newer twin-engine aircraft with better fuel economy.
By using these aircraft, nordic global airlines were able to provide a considerable amount of main-deck cargo space for oversized shipments, large enough to carry industrial machinery, automotive components, and specialized electronics that standard passenger aircraft cargo holds could not accommodate.
What was the reason for nordic global airlines ceasing operations in 2015?
nordic global airlines was forced to cease operations on the 31st of May 2015 because of the disastrous combination of an otherwise strategically favorable location and a competitive fleet. This was because the global air freight market was experiencing a dramatic transformation and particularly unfavorable conditions were occurring for an air freight carrier.
During 2014 and 2015, the global air freight market was experiencing an excess supply of freight capacity. Many airlines were starting to use larger twin-engine airliners, such as the Boeing 777 and the Airbus A350, which had freight capacities that were much larger. This caused the airlines to offer freight services at significantly lower rates, which caused a large drop in air freight costs.
It was very hard for dedicated cargo operators like nordic global airlines to compete with depressed freight rates. Nordic Global averaged a fleet of three engine MD-11F freighters compared to dual engine freighters for most competitors and, as such, Nordic Global had to contend with a larger maintenance and fuel bill from operating the older fleet. When Finnair, along with its other partners on the airline, evaluated the cargo carrier’s business case, it became apparent to them that there was too much overcapacity in the sector for the airline to become sustainable and profitable. The shareholders decided to stop operations on their own, rather than have to deal with a difficult bankruptcy.
The Lasting Impact of nordic global airlines on European Air Freight
The Nordic Global case is an example of how unpredictable the dedicated air freight market is. The short operational period of the airline is an example of the air freight market’s reliance on supply and demand, and how fragile that reliance is.
Helsinki was, and still is, an important logistics center in connecting Europe and Asia, and the airline’s operations provided evidence for that. Other airline’s and logistics services continue to use that route today. The original Finnish cargo airline’s route has been proven correct.
Frequently Asked Questions about nordic global airlines
When did nordic global airlines start operating?
Nordic Global was founded in April 2011, and its first flights were in August 2011.
Who owned nordic global airlines?
The airline was a joint venture. The main owners were Finnair, Neff Capital Management, Ilmarinen, and the Tapiola Group.
What kind of aircraft were used?
The airline’s fleet consisted of four McDonnell Douglas MD-11F. These are a large, wide-body, three-engine aircraft used for long-range freight.
What caused the airline’s permanent closure?
May 31, 2015, marked the company’s official shutdown, stemming from a dramatic overabundance of insufficient demand in the global air cargo market. Increased reliance on passenger flights for affordable cargo dramatically reduced prices, making operation of a dedicated cargo airline unsustainable.
Where was Nordic Global headquartered?
Nordic Global was based in Vantaa, Finland, with their main operational hub at Helsinki-Vantaa Airport.
