The Miami-based cargo carrier has decided to cease operations of its subsidiary, iTN Worldwide, at the end of APR23, local reports claim, citing an announcement made by airline chief, Tim Strauss. The decision was taken to enable the U.S. carrier to concentrate on its core business, flying goods across its own network, argues the management.
iTN’s site is full of euphonious testimonials like the one contributed by Kelly Petro, Global Director of the NY-based Logistics Group DFASS: “We appreciate the professionalism of iTN team,
the high-quality service and partnership helping us achieve our goals.” A similar laudation comes from Nicholas Alexander, Director Operations/Sales, Mexcor of Florida, who specializes in
shipping wine and other alcoholic beverages by air: “Our year has been fulfilled with great growth and iTN Worldwide has been working along our side. I highly recommend iTN Worldwide as a
Sweet words, but to no effect
However, these and similar words of praise from business partners will not save iTN from shutting its doors. Amerijet CEO, Strauss has now informed the 27 employees of the forwarding agent in the U.S., Puerto Rico, and Trinidad, of the unit’s forthcoming demise.
Concentrating on the core business
News channel FreightWaves quotes Amerijet Chief Commercial Officer, Eric Wilson as saying: “As iTN represents a nominal percentage of Amerijet’s overall financial results, Amerijet made this decision to focus on growing its core airline business. Over the past two years, Amerijet has been surgically focused on a growth strategy, tripling the number of aircraft it operates, with additional converted 767-300F aircraft on order arriving over the next two years.” The executive went on to say: “Freight forwarding is very fragmented and has not been [our] core business. It requires scalability to be successful.”
Selling iTN was not an option
Stepping out of the forwarding business enables Amerijet to streamline its management responsibilities. Wilson told FreightWaves that expanding markets and streamlining the carrier’s local delivery and national road feeder service is of top priority. He added to this that selling iTN had not been an alternative solution due to the small size of the forwarding unit and in view of the costs arising from a possible sale, which would outweigh expected revenues.
Since former Air Canada Cargo boss, Strauss took the helm at Amerijet on 17AUG20, he concentrated on growing the fleet and updating the carrier’s electronic messaging system. Currently, the Miami-headquartered carrier commands a fleet of 22 freighters and began cooperating with Maersk Air Cargo, operating B767F Transpac flights between Incheon International in South Korea, Chicago Rockford Airport, Illinois and Greenville-Spartanburg Airport, South Carolina.
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