You are a member of the operations team working for CargoLogicAir. The business development team has identified Africa as the next location for a scheduled aircraft base. The aim is to connect the African continent with Europe and the Middle East

Assessment Brief

Task: 

You are a member of the operations team working for CargoLogicAir. The business development team has identified Africa as the next location for a scheduled aircraft base. The aim is to connect the African continent with Europe and the Middle East. Your task is to identify three suitable freighter aircraft to locate at three different airports in Africa. Your team needs to deliver a proposal presentation which incorporates:

• a review of the potential commercial export and import market in African countries so as to select your three airports.
• an analysis of the aircraft types that would be suitable, based on cargo capacity and range.an analysis of airport infrastructure at your selected locations to match the ground handling requirements of your aircraft and any associated recommendations.
• an economic analysis of your proposal

My part is economic analysis only. We have chosen 3 routes from Africa:

1. Johannesburg to Frankfurt plane, using 777-FBT-D-ALFA
2. Addis Ababa Bole (ADD) to Dubai World Central (DWC), Boeing 737-46J(SF) D-ACLG 
3. Cairo (CAI) to London Heathrow (LHR),  A330-243(P2F) SU-GCE 

You need to find out following stuff for economic analysis:

• how much fuel cost for each route individually, 777-FBT-D-ALFA and A330-243(P2F) SU-GCE leasing price from any broker with valid website and 737-46J(SF) D-ACLG price because we are showing this is our own aircraft in the presentation. 
• the airport fee charges of Frankfurt, Dubai and Heathrow London.
• demand of each route 
• economic condition of Johannesburg, Addis Ababa and Cairo. why we chosen those destinations, flying from? Do they have good GDP condition?
• Please remember we are traveling Johannesburg to Frankfurt once in a day, Cairo to London twice in a day and Addis Ababa to Dubai twice a day because those are short flights.
• Also mention duration and km of each route and explain fuel cost.

Sample Answer

Economic Analysis for Selected Cargo Routes

Route Details and Technical Background

Fuel Cost Analysis

Using industry averages:

• 777‑300F: burns: 6 800 kg/hr

  • Route duration (10.5 hrs) → 71 400 kg fuel

  • Jet-A cost: US $0.75/kg → US $53,550 per flight

• A330‑200F (P2F similar): burns: 5 500 kg/hr

  • Duration (4 hrs): 22 000 kg → US $16,500

• 737‑400SF: burns: 3 500 kg/hr

  • Duration (4.9 hrs):: 17 150 kg → US $12,863

These demonstrate that the 777’s fuel cost is roughly four times that of the others.

Leasing Costs

• 777‑200F (newer P2F):: US $1.64 million/month 

  • Pro‑rated/day:: US $54,700

• A330‑200F (P2F):: US $755 000/month

  • Pro‑rated/day:: US $25,170

• 737‑46J(SF): Owned – no lease costs, but include maintenance/reserves in fleet operations accounting.

Airport Handling and Landing Fees

• Frankfurt (CargoCity):

  • Handling:: €0.17/kg i

  • For 777 (~100 t payload) → 100 000 kg × €0.17 = €17,000 per flight

• Dubai DWC:

  • Comparable to FRA; estimate: US $15,000

• Heathrow (LHR):

  • Larger fees, estimate: US $20,000 per landing

Route Demand and Economic Viability

• Johannesburg ↔ Frankfurt:

  • South Africa’s GDP: US $400 billion 

  • Johannesburg metro GDP: US $135 billion

  • High volume of mining export and automotive sector goods → strong demand.

• Addis Ababa ↔ Dubai:

  • Addis metro GDP: US $61 billion, city growth: 10.6 % CAGR 

  • Ethiopian Airlines Hub, robust cargo flow to Middle East; demand justifies two daily flights.

• Cairo ↔ London:

• Cairo metro GDP: US $190 billion; Egypt national GDP: US $380 billion

• Twice daily service taps into textiles, perishables, and UK trade links.