FlyerTalk Forums - View Single Post - Intíl flight loaded with couriers? GUA-ATL
Old Oct 14, 17, 2:55 pm
  #16  
zeebanker
 
Join Date: Jul 2003
Location: MSP
Posts: 163
Wow. Weird business model. Its not apparent to me, but obviously its profitable.

Quick back of the envelope calculation indicates that the courier company paid somewhere around $50,000 for tickets alone. (assuming $1,000 per RT x 50 couriers). Plus wages of about another $50,000 (rounding $9.50 to $10/lb * 100lbs/courier x 50).

It costs approximately $100,000 to ship 5,000lbs of stuff from Guatemala to various destinations in the US, at a rate of about $20/lb in this business. Can the courier company charge, say around $25/lb of their customers to make a bit of a profit?

Wouldn't it be easier to UPS/FedEx the stuff or heck, charter an old DC9? Any logistics experts here care to opine?

Unless, of course they mark up the liquor or whatever goods they are shipping, and sell here in the US, but still doesn't make sense.
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