Customers Choose Airline Companies to Deliver the Luxury Vehicles image

More customers choose the services of airline companies to have their newly purchased vehicles delivered to them.

For example, a 1963 Aston Martin, similar to the one seen in the ‘Goldfinger’ driven by James Bond, began its journey inside a Delta Air Lines jet. The customer accepted to pay $10,000 to have his precious vehicles delivered over night. Delta flies around 100 vehicles annually and says that its profit margins are considerably widened. This new strategy brings a $4 billion-a-year profit for the North American carriers.

“The higher the value of the goods you’re shipping, the higher the margin, and a lot of these cars are almost irreplaceable,” said Helane Becker, an analyst at Cowen Securities LLC in New York who recommends buying Delta. “Most of that is going to flow to the bottom line.”

Delta says that this business is profitable because the costs for crew, aircraft payments and fuel are covered by fares from passenger ticket sales. Recently the company delivered a $150,000 Porsche 911 GT3 and a $250,000 Lamborghini, besides the Aston Martin. But the leader airlines in vehicle deliveries are Deutsche Lufthansa and International Consolidated Airlines Group.

“Some people want to be the first person in Los Angeles with the newest Bentley, so $10,000 on a $250,000 product isn’t important,” said Tristan Koch, managing director of cargo sales in Europe for the Fort Worth. “If you stick it on a boat, it’s out of your sight in a 40-foot container for weeks.”

Source: Bloomberg