BURLINGTON AEROPLANE COMPANY: United States (19831984). Established at Burlington, Washington, in 1983, BAC undertakes scheduled Piper Aztec flights to Mount Vernon and Seattle. Slight traffic in a recession and start-up costs force the new third-level entrant into bankruptcy in 1984.
BURLINGTON AIR EXPRESS (BAX): United States (1986-1997). Early in 1986, Burlington Northern Air Freight is renamed and begins initial operation of its own hub and spoke system with a fleet which comes to include 4 DC-8-63Fs, 11 B-707-320Cs, 4 B-727-100QCs, and 4 Convair CV-580s. Although no traffic figures are released, it is understood that in excess of a million pounds of freight are hauled nightly, some of it by Buffalo Airways under contract. At year’s end, a new management team, headed by President/CEO Robin H. W. H. Wilson, is brought in to reverse a $12.2-million operating loss.
Burlington’s parent, Pittson, is acquired by WTC International in March 1987 through an exchange of stock. The new owner, an internationally experienced freight forwarder, begins to combine its own freight operation with Burlington’s to create a new daylight shipping service that will employ the Fort Wayne hub and the unchanged BAX fleet. The amalgamation continues over the next 12 months and no traffic figures for the year are released.
Now one of the world’s larger air-cargo operations, 2,375-employee Burlington owns a fleet in 1988 that includes 4 DC-8-63Fs, 2 DC-8-54Fs, 11 B-707-320Cs, 4 B-727-100QCs, and 2 CV-580s. Direct freighter flights are inaugurated in June between the Fort Wayne hub and Newark while, in October, daily B-707-320C flights begin from Fort Wayne to Des Moines.
A total of 474,500 pounds of freight are transported on the year and revenues reach $800 million.
Early in the spring of 1989, work begins on a $50-million, 279,000-sq.-ft. air-cargo hub at Toledo, Ohio. In October, the company reports that its second quarter operating profit is up 300% and that, for the first time in company history, revenues from international operations exceed those from domestic work. Cargo capacity is increased by 25% in November when two DC-8-61Fs are acquired.
The new hub continues construction in 1990. The year’s good work brings a $9.1-million operating profit.
Using Brussels as a hub, the company, in May 1991, begins a shortterm DC-8-63F supplemental weekend lift program from Belgium to Fort Wayne. Services are also expanded deeper into Latin America and the Pacific.
Although traffic figures are not released, it is noted that revenues are up to $875.9 million and operating income is $19.8 million.
The new hub facility is opened at Toledo Express Airport in Ohio during January 1992. Over four million pounds of cargo can be moved through the 279,000-sq.-ft. facility daily. Revenues total $888.22 million and the operating profit is $15.1 million.
The fleet in 1993 includes 7 DC-8-63Fs, 4 B-707-320Cs, 3 DC-8-71Fs, and 2 B-727-100QCs.
Following the collapse of Time Air Sweden, A. B. in February, BAX is able to acquire its only freighter, the DC-8-71F Italian Rainbow.
On July 1, the company receives an international transportation logistics contract from General Motors; under its terms, the freighter will move automotive products between the U. S. and Europe.
Although traffic figures are still not released, it is announced that a $38-million operating profit is earned on revenues of $998 million. The operating income is 24th highest among all of the world’s airlines.
It is announced in May 1994 that Burlington has received a two-year, $1.6-million contract from IBM de Mexico under which the air transport concern agrees to handle shipments of computers and peripheral equipment from Mexican facilities to South American markets. Also during the spring, a contract is signed with Air Transport International under which the Detroit-based cargo carrier agrees to operate 9 of BAX’s DC-8-71Fs to more than 30 U. S. markets.
An agreement is signed with Copenhagen’s Inter Express, under which the Danish freight forwarder takes on the Burlington name and begins handling BAX’s air ocean and surface transportation business, including customs brokerage, on June 1. Traffic is considerably increased during the year by a nationwide trucking strike.
Between July and mid-August, capacity is increased by 20% with the addition of 3 more DC-8-71Fs, 1 B-727-21C, and 1 B-727-173C to the North American next-day jet fleet. A total of 5 million worldwide shipments are made, allowing an operating profit of $69.22 million.
Early in 1995, company officials credit a truckers strike for the previous year’s good economic fortune. New operations are launched in Belgium, Denmark, Portugal, the Philippines, and China. Worldwide shipments jump 5.7% to 5.1 million. Operating income advances 16.4% to $1.41 billion while costs rise an identical 16.4% to $1.35 billion. Operating income reaches $58.72 million, down from 1994.
Operations continue apace in 1996. As in earlier years, contracts are let to other carriers, e. g., American International Airlines, for the actual operation of the company’s freighters.
On May 29, a contract is received from SAAB Automobile, A. B. to handle spare part shipments from the U. S., Canada, and Japan to its Swedish spare part distribution center at Nykoping.
On June 11, BAX joins with Air France to transport four classic Type D Jaguar racing cars from Los Angeles and Chicago to Coventry and then to Le Mans to participate in special anniversary events surrounding the Grand Prix. The cars are returned to their owners at the end of the month.
BAX teams with Qantas Airways (Pty.), Ltd. on October 5 to introduce BAX Downunder Direct, a weekly roundtrip B-747F service from the American company’s Toledo hub to Sydney and Melbourne, with connections to major cities throughout Australia and New Zealand.
Jo-Burg Direct two-day cargo service is introduced on January 27, 1997, from New York, Los Angeles, Chicago, and Atlanta to Johannesburg. From that point, distribution is made possible via BAX offices in that city, Cape Town, Durban, Port Elizabeth, and Richards Bay.
Having originally been unscrupulously traded on the black market to a family in Fingal, Ireland, a rare, 8-month-old Siberian tiger cub named “Jodie” is turned over to the Irish Seal Sanctuary. Nursed back to health over a two-month period, the cub is readied to go to its new home at the San Fernando Wildlife Way Station in California. Flown to London on April 25, the small cat is sent to Los Angeles via an American Airlines flight next day and is then transported by Burlington to San Fernando. Both airlines donate their services to save what might otherwise have been 1 of only 470 Siberian tigers remaining in the wild.
A multiyear “global logistics” contract is signed with the personal computer peripherals manufacturer NEC Technologies in June. Under the arrangement, the carrier will undertake the company’s material returns.
The giant Arkansas-based retailer Wal-Mart selects BAX on June 30 as its primary carrier for heavyweight international-air shipments. The contract covers time sensitive shipments over 50-lb. to the retailer’s 197 international outlets in Canada, Mexico, Puerto Rico, Brazil, Argentina, China, and Indonesia. The carrier is also endorsed as Wal-Mart’s secondary carrier for domestic shipments over 50-lb.
On July 29, Air New Zealand, Ltd. retains BAX to handle its logistics under an open-ended, multimillion dollar contract. BAX does not fly goods, but manages the carrier’s supply chain to ensure that the parts it is transporting are received where and when they are needed.
On August 21, the company is awarded a two-year contract by Southampton, England-based Racal Recorders, Ltd., an electronics concern, to provide both inbound and outbound services for the company from the U. K., with emphasis on shipments from subsidiary companies in the U. S. and Europe.
Later in the year, the concern is renamed BAX Global.
BURLINGTON AIRWAYS: United States (1980-1982). Bernard F. “Bernie” Golding sets up Burlington Airways at Kenosha, Wisconsin, in 1980 to provide scheduled passenger and cargo services to Chicago via Manitowoc and Milwaukee. Beech 18 and Piper PA-31-310 Navajo revenue flights are duly inaugurated.
The fleet is increased in 1981 to include 1 Convair CV-240, 1 Aero Commander 680, 5 Beech 18s, and 1 Cessna 172; the Navajo is retired. All-cargo flights commence to Indianapolis, Louisville, Cincinnati, and Lexington; these operations are flown under the name Burl Air Freight.
The financial effects of the previous summer’s PATCO air traffic controllers’ strike put the company out of business during the first quarter of1982.
BURLINGTON NORTHERN AIR FREIGHT: United States (19721986). Burlington Northern Air Freight is established in 1972 as an air freight forwarder subsidiary of the Burlington Northern Railroad; Lawrence Rodberg is named chairman. Relations are established with the scheduled airlines for the provision of service with competitive rates.
During the remainder of the decade and into the next, many shipments are made on behalf of the automobile industry and a significant number of charter flights are undertaken from the Midwest to Texas. The first small planes are chartered in 1980 for the transport of small packages and, in 1982, the railroad sells this division to Pittston Company.
Fiscal difficulties caused by the national recession bring a major management change in 1984. Chairman Rodberg resigns and is succeeded as president/CEO by George Ryan. After receiving unreasonable quotes from both Eastern Air Lines and United Airlines, the long-established transportation firm now elects to begin flying its own freight.
In excess of $100 million is invested in the development of a cargo hub at Fort Wayne Airport and long-term leases are taken on a fleet made up of 2 Boeing 727-100QCs, 2 B-707-320Cs, and 3 DC-8-63CFs. Choosing not to become a small-package specialist, general commodities transport operations are launched from the Indiana hub by Orion Air personnel under contract to 22 cities nationwide.
Over 750,000 pounds of freight are moved nightly and bring a $15.7-million operating profit for the year.
Operations continue apace in 1985 as the carrier’s commitment to transporting its own freight is intensified. The fleet is increased by the addition of 6 additional leased B-707-320Cs. A contract is entered into with Spectrum Helicopters to provide rotary-wing pickup and delivery services to Manhattan and Wall Street and to suburban heliports in Connecticut, New Jersey, and New York’s Westchester County.
In December, Burlington contracts with Pan American World Airways (1) for all of the pioneer’s belly cargo space on its four-times-per-week B-747-200 San Francisco and Los Angeles to Frankfurt flights. The new Fort Wayne hub loads 2.7-billion pounds of express. Revenues decline 2.6% to $459.3 million and a $9.2-million operating loss is suffered.
Early in 1986, the operator is renamed Burlington Air Express.
World History
