As it approaches its milestone 25th anniversary in the coming year, Pacific Air Cargo (PAC), a small yet resilient player in the air freight industry, has significantly bolstered its operational capabilities. Historically reliant on a single leased freighter aircraft, PAC has now joined forces with the industry heavyweight Atlas Air, extending its Kalitta Air ACMI partner network. This dynamic collaboration is set to enhance shipping efficiency by offering eight weekly flights on the robust 747-400F model, connecting key routes from Los Angeles to Honolulu and onward to Guam, thus empowering shippers with increased capacity and reliability.
Though classified as an international freight forwarder, Pacific Air Cargo is well-acquainted with forming strategic alliances with global all-cargo airlines. With a remarkable quarter-century relationship with Kalitta Air, headquartered in Ypsilanti Township, Michigan, PAC has continuously benefited from leasing one of Kalitta’s nineteen 747-400 freighters, a practice it embraced since the inception of its operations.
Pacific Expansion
Currently, Pacific Air Cargo is aggressively pursuing expansion efforts, strategically moving air freight through an extensive Road Feeder Service agreement that spans all major US gateways to Los Angeles and Honolulu. This network further extends throughout the South Pacific, providing regular weekly services to American Samoa, Guam, and additional destinations. The airline is also evaluating potential direct services from Hawaii to Mexico, opening doors for expanded international trade.
In the event of launching these new routes, Pacific Air Cargo will not incur the significant costs typically associated with acquiring additional jet freighters. CEO Tanja Janfruechte revealed in an exclusive interview with the American Journal of Transportation that they are currently in discussions with Asia Pacific Airlines, a longstanding partner based in Guam, which operates a B757 freighter that services Honolulu to Pago Pago in American Samoa on a weekly basis. “We are actively assessing the feasibility of connecting Asia with Mexico via Honolulu,” Janfruechte stated.
In a noteworthy move to penetrate the Australian market, Pacific Air Cargo has embarked on a new interline partnership with UPS, facilitating cargo pickup and delivery in Sydney in what marks a significant step in broadening its operational footprint.
Freightos WebCargo
In August, PAC took a critical step to attract international freight for its transpacific routes by collaborating with Freightos’ WebCargo digital booking and payment platform. This strategic partnership enhances PAC’s visibility within a vast global network of forwarders and shippers situated in numerous cities across the US mainland, while simultaneously improving booking efficiency and customer service capabilities, as noted in a press statement from the airline.
Pacific Air Cargo has achieved its remarkable growth trajectory through a series of partnerships and leasing arrangements with major airlines, strategically opting not to expand its fleet through direct acquisitions. Janfruechte emphasized this approach as a sophisticated series of freight handoffs among its airline partners. For example, during certain flights, PAC operates the leased 747-400F from Los Angeles International Airport to Honolulu, only to have Kalitta Airways take charge further into Asia, where cargo is then collected for return to the US mainland.
The foundation of Pacific Air Cargo’s business model was laid by Janfruechte’s mentor and first employer, Beti Ward, the company’s founder and inaugural CEO. Ward had initially launched American International Cargo (AIC), a freight forwarder based in Hawaii, where Janfruechte began her logistics career as Ward’s administrative assistant. After AIC was sold to Kitty Hawk Aircargo, which collapsed in bankruptcy in 2007, Ward transitioned to Honolulu to establish Pacific Air Cargo in 2000. Janfruechte subsequently joined her, progressing through various operational roles until assuming leadership following Ward’s passing in 2018.
Under Janfruechte’s guidance, Pacific Air Cargo has diligently worked to expand upon Ward’s visionary initial strategy, which included exporting fresh flowers from the mainland to Hawaii while using cargo capacity for backhauling pineapples and papayas. With the 747-400F boasting a remarkable maximum payload of 250,000 pounds, the airline has diversified its cargo offerings far beyond just island fruits and perishables—especially vital since the previous pineapple and papaya backhaul routes ceased to be viable over twenty years ago.
During this decisive era, Pacific Air Cargo began solidifying interline partnerships primarily with established Asian-based international airlines. This strategic pivot has significantly contributed to the airline’s continued growth in the Hawaiian cargo market. Asian passenger airlines conveniently transport belly-loaded export cargo from the Far East and South Pacific to Honolulu, where Pacific Air Cargo consolidates this freight aboard its 747-400F for the lengthy 3,000-mile journey back to Los Angeles International and beyond.
Interline Agreements
This robust strategy is exemplified by Pacific Air Cargo’s extensive interline agreements with an impressive roster of transpacific airlines. Key partners include Japan Airlines, Asiana, Korean Air Lines, Air New Zealand, Qantas, and Air Premia, a Seoul-based passenger airline known for its freight capabilities. Janfruechte highlighted that the synergy between Pacific Air Cargo’s 747-400 freighter and the Atlas Air 747-400 freighter renders them ideal for accommodating the diverse range of cargo available to them in Honolulu from their Asian and South Pacific partners. “We can handle the big, the bad, and the ugly, and that’s what underpins the success of our transpacific routes,” she remarked.
The impetus for Pacific Air Cargo’s recent expansion, particularly the increase from six to eight weekly flights from Honolulu to Los Angeles and the alliance with Atlas Air, was set in motion following the departure of Aloha Air Cargo from the market earlier this year. “After Aloha Air Cargo ceased operations on June 1, we swiftly partnered with Asia Pacific Airlines to operate an additional two flights utilizing their B757F to accommodate the influx of demand,” Janfruechte explained from the company’s headquarters at Los Angeles International Airport. “Recognizing the volume that shifted toward us, we concluded that we needed a more substantial aircraft to effectively manage the increased load.”
Janfruechte further indicated that in response to the surge in e-commerce freight traffic across the Hawaiian Islands, the airline has expanded its workforce from 100 to 175 employees. Many of these new hires are now focused on enhancing the airline’s ground handling operations. However, she pointed out that recruiting qualified manpower in Honolulu has been increasingly difficult, presenting a notable challenge as Pacific Air Cargo continues to diversify its services and operations.
Simultaneously, the company’s cargo facility—spanning 70,000 square feet at Honolulu’s Daniel K. Inouye International Airport—is currently operating at maximum capacity, with Janfruechte acknowledging, “We just have to make it work,” while lamenting the limited options for expanding cargo facilities in the area.
For the near future, Pacific Air Cargo is focused on cultivating its mainland US traffic associated with the recently inaugurated 747-400 flights to Guam and American Samoa. “The Pacific is truly our niche,” reaffirmed Janfruechte.
Despite operating jumbo freighters, the airline affirmed that it does not struggle to secure cargo loads. “We maintain long-standing relationships with other airlines, prominent forwarders, and a few integrators,” Janfruechte shared. “Currently, about 75 to 80% of our available shipping space is pre-booked or allocated. Our capabilities extend far beyond flowers; we frequently transport horses, vehicles, and military aircraft engines. With our added capacity, we can handle just about any cargo requirement.”
**Interview with Tanja Janfruechte, CEO of Pacific Air Cargo**
**Editor:** Tanja, thank you for joining us today. Pacific Air Cargo is approaching its 25th anniversary, and it seems like you’ve been making some significant moves in the air freight industry. Can you tell us a bit more about your partnership with Atlas Air and how it’s going to affect your operations?
**Tanja Janfruechte:** Thank you for having me! The partnership with Atlas Air has been a tremendous opportunity for us. By extending our ACMI network with them, we are excited to offer eight weekly flights on the 747-400F model. This means increased capacity and reliability for our shippers, particularly on routes from Los Angeles to Honolulu and then onto Guam. It really enhances our operational capabilities as we approach our milestone anniversary.
**Editor:** That sounds promising. You mentioned that PAC has historically relied on a single leased freighter aircraft. How has your strategic alliance with Kalitta Air helped pave the way for this expansion?
**Tanja Janfruechte:** Our long-standing relationship with Kalitta Air has been essential since the beginning of our operations. By leasing one of their 747-400 freighters, we’ve been able to maintain a solid service foundation. This collaboration has allowed us to continuously adapt our operations to the evolving market demands and has set the stage for further alliances, like the one with Atlas Air.
**Editor:** I see. Also, you’re pursuing expansion in the South Pacific and even eyeing direct services from Hawaii to Mexico. Could you elaborate on that?
**Tanja Janfruechte:** Absolutely. We’re currently utilizing a comprehensive Road Feeder Service that connects all major US gateways to our operations in Los Angeles and Honolulu. As for the potential routes to Mexico, we are assessing the feasibility of this initiative through discussions with Asia Pacific Airlines. It’s all about exploring new markets and opportunities for improved international trade.
**Editor:** You’ve also recently partnered with UPS to enter the Australian market. How important is this partnership for PAC’s growth?
**Tanja Janfruechte:** The partnership with UPS marks a significant step for us. It allows us to facilitate cargo pickup and delivery in Sydney, expanding our operational footprint. This kind of partnership is essential for enhancing our service offerings and increasing our reach in the international market.
**Editor:** Speaking of reaching the market, how has your collaboration with Freightos’ WebCargo platform improved your operations?
**Tanja Janfruechte:** The partnership with Freightos’ WebCargo is pivotal for our visibility in the global market. It helps streamline our booking process, improving efficiency and customer service. With enhanced access to a vast network of forwarders and shippers, we can better attract international freight for our transpacific routes. It’s all about leveraging technology to serve our customers more effectively.
**Editor:** It sounds like you have a well-thought-out strategy that hinges on partnerships rather than direct fleet expansion. How do you see this approach shaping the future of Pacific Air Cargo?
**Tanja Janfruechte:** Partnerships have allowed us to grow sustainably without the extensive cost burden of acquiring our fleet. We excel in what we call “freight handoffs,” where we collaborate seamlessly with our airline partners. This not only optimizes our operations but also adds agility to our response to market changes. We intend to continue this approach as we grow in the future.
**Editor:** Lastly, as you reflect on your journey since joining the company, how do you feel about the direction you’re headed under your leadership?
**Tanja Janfruechte:** It’s been an insightful journey. Building upon the foundation laid by our founder, Beti Ward, I’m honored to lead Pacific Air Cargo during such a transformative time. We are committed to pushing boundaries and evolving our service offerings. I truly believe that, with our strategic partnerships and dedicated team, we are well-positioned for continued growth and success in the air freight industry.
**Editor:** Thank you, Tanja, for sharing your insights with us. It sounds like an exciting time for Pacific Air Cargo!
**Tanja Janfruechte:** Thank you! It’s been a pleasure.