News
(2007 News)
A SIX to eight per cent jump in online shopping this year is causing a great Australian rush for airfreight space, reports the Australian Broadcasting Corporation. The Australian Horticultural Exporters Association's David Minnis said Christmas was always busy, but the rise in the country's online shopping this year has made life more difficult than ever. "As a fresh fruit exporter, we're used to having some problems around Christmas time, but for some reason this year Australians are sending lots of presents overseas," he says. "Certainly space into Asia and then on through Europe is tight because of this movement of Christmas goods," he said.
ALL Nippon Air (ANA), Japan's second largest domestic and international airline, has added a cargo venture to capitalise on rising trade in Asian countries, reports Bloomberg. The Tokyo-based regional airline will take 34 per cent stake in the new company and Japan's biggest air forwarders' Nippon Express (NE) and Kintetsu World Express (KWE) will take 28 per cent each, with the remaining to be held by as yet unnamed Japanese forwarders. From April of next year, the new company aims to more than double its four-plane cargo fleet in two years to compete with top rival Japan Airlines Corporation (JAC). To expand its international cargo operation ANA is due to outsource some operations and increase the number of its aircraft. The International Air Transport Association (IATA) reported a four per cent rise in global air cargo in the first 10 months of this year. Japan's big airfreight forwarders NE and KWE will co-operate on international shipments and are also in talks with JAC. They compete with DHL Worldwide Express, FedEx and United Parcel Service.
LOOKING to optimise in airfreight at Pune, south of Mumbai, airlines have joined to form the Air Cargo Club of Pune (ACCP) to provide a common platform for service providers to link carriers, customs, cargo agents and freight forwarders. Committee members include officials from Air India, Jet Airways, Kingfisher Airlines, SpiceJet and Indigo Airlines. The club was formed last week, according to Express India, at a meeting of airlines at the Inland Cargo Depot (ICD) at Dighi. Said Air India marketing manager Dhairyashil Vandekar, the club's founding president: "There has been an exponential growth. The aviation industry is witnessing a boom and the area of cargo exports. To streamline this, airlines operating from Pune decided to come together and form a club." ACCP will work as a facilitator to the air cargo industry around Pune and address problems and endeavour to bring about quick solutions. "When there is a need we can unitedly as a club, hold talks with government to safeguard the legitimate interests of members," said Mr Vandekar. "We will also sensitise farmers and traders in and around Pune to ensure maximum utilisation of air cargo," he said. To inform members of the latest developments, global advances and modernisation in the air cargo industry, ACCP will also hold workshops, seminars and lectures.
FEDEX Express has announced the opening of its branch in Huzhou in Zhejiang province as part of a drive of the world's biggest express company to move into the second and third tier cities of China. The new branch will meet the growing need for domestic and international delivery services in both Zhejiang and the Yangtze River Delta. "The Huzhou branch will help meet the demand for fast, reliable domestic and international service by Huzhou's high-tech and modern manufacturing industry, which accounts for 50 per cent of the city's industrial GDP," said FedEx China domestic vice president Jimmy Chen. Huzhou is an example of China's booming second- and third-tier cities. The city's rapid economic development, strong manufacturing base and increasing export volume have brought about a wealth of new commercial opportunities to the logistics industry, said a FedEx statement. In 2006 alone, Huzhou's volume of foreign trade exceeded US$3 billion in 2006, a 32.6 per cent increase year on year. Covering an area of 374 square metres, the Huzhou branch has an advanced, specialised warehouse and an inbound and outbound sort system, which can sort up to 450 packages per hour. Domestic shipments will be channeled through the Hangzhou-based China regional hub, which will then sort and send the packages for next-business-day, time-definite delivery to more 30 cities and day-definite service to more than 200 cities. International packages will be transported to the FedEx Shanghai facility at Pudong and loaded onto FedEx MD-11 and A-310 freighters to be connected with the FedEx global network. FedEx Express has annual revenues of $36 billion and employs 280,000 people.
A US$125 million air cargo centre will be built at LA/Ontario International Airport under terms of a 40-year lease approved recently by the Los Angeles Board of Airport Commissioners. LA/Ontario airport is the 14th-busiest cargo handler in the US, with a throughput of nearly 494,000 tons a year, an 18 per cent increase from 1997, according to airport cargo consultant Michael Webber. The new one million square foot facility will be built in five phases over 13 years, according to Steve Forrer, an executive vice president of the Annapolis, Maryland-based developer, Aeroterm, reported the Daily Breeze, of Torrance, California. Construction is set to begin by mid-2008 on 94 acres northwest of the passenger terminal at Ontario airport, Mr Forrer said. Los Angeles World Airports, the agency that operates Ontario airport and Los Angeles International Airport, stands to make $81 million on the deal. The project falls in line with Los Angeles Mayor Antonio Villaraigosa's efforts to divert air traffic from Los Angeles International Airport by building up Ontario airport's presence as a cargo handler. That number is expected to continue to grow because Ontario is one of three airports that serve as a major hub for UPS, Mr Webber told the airport commission last month.
BOEING and Qatar Airways have confirmed the airline's order for thirty 787 Dreamliners and five 777 freighters valued at over US$6.1 billion at list prices by holding a signing ceremony to mark the deal at the Dubai Air Show. A statement from the US aircraft manufacturer said the aircraft were previously listed on Boeing's orders and deliveries website as unidentified. Qatar Airways is expected to carry more than 10 million passengers during the current financial year. "We look forward to utilising our new Boeing airplanes so that we can further enhance service to our passengers, while also playing a pivotal role in the economic development of the State of Qatar through expanded and optimised cargo operations," said Qatar Airways CEO Akbar Al Baker. In 2006, Qatar Airways announced orders for fourteen 777-300ERs, six 777-200LRs and two 777 Freighters. The airline is scheduled to receive its first 777-300ER later this month when the aircraft flies from Seattle to Doha, Qatar.
HACTL (Hong Kong Air Cargo Terminals Limited) has announced that its highest monthly cargo handling volume was achieved in October - a total of 246,346 tonnes, representing a year-on-year growth of 2.3 per cent. The performance in the week of October 29, reached 59,442 tonnes and broke a weekly record. Cumulative tonnage from January to October 2007 was 2,142,867 tonnes, up 2.8 per cent year on year. October export volume was 142,510 tonnes, up 3 per cent against the same month last year. Cumulative export volume for the first 10 months was 1,199,305 tonnes, a year-on-year increase of 2.8 per cent. But October import volumes, and for the first 10 months, were 59,438 tonnes and 564,547 tonnes respectively, representing a 1.1 per cent decrease year on year. Transshipment volumes were 44,398 tonnes for October and 379,015 tonnes for the first 10 months, representing a year-on-year increase of 4.9 per cent and 8.9 per cent for the respective periods. "We are pleased to keep breaking records in September and October," said HACTL marketing chief Lilian Chan. "We are confident that we will continue to manage cargo volume growth and provide efficient and smooth cargo handling services to our customers during the peak season."
GLOBAL express giant FedEx's new Asia-Pacific hub at south China's Guangzhou Baiyun Airport will be up and running by the end of 2008. The CNY2.5-billion (US$336-million) facility started construction in January 2006, covering 189.5 hectares. It is estimated to be able to bring 1 million tons to Baiyun Airport's throughput in one year's operation and generate a value of US$11 billion by 2010 and $65 billion by 2020. An industrial park near the hub is also under construction. The industrial park is located to the east of the airport. The first phase project covers 6.6 square kilometres with a production value of $33 billion. The second phase expansion will enlarge the area to 14 square kilometres and bring the production value up to $119.5 billion. The third phase will expand the area to 20 square kilometres and raise the production value to $287.6 billion. The industrial park will mainly serve for airfreight logistics and aircraft maintenance, said Chen Xiaoning, vice president of the Guangdong Airport Management Group.
FedEx cut its earnings guidance for the current quarter, citing rising fuel costs as the cause. Shares fell $4.35, or 4.3%, to $97.02 on the news, and FedEx’s announcement was also dragging down the Dow Jones Transportation average, which fell 46 points, or 1.0%, to 4,592.
Economic headwinds are taking their toll on FedEx. On Friday, the delivery service, slashed its second quarter and full-year guidance, citing high fuel prices and overall weakness in the freight industry. Shares of Fedex Corporation dropped 3.5%, or $3.52, to $98.11 in morning trading. The announcement dragged down other transports, as the United Parcel Service tumbled 2.1%, or $1.54, to $71.56 and Con-way slipped 1.7%, or 70 cents, to $40.55. FedEx says it now expects to earn $1.45 to $1.55 a share for the second quarer, which is more than 15 cents below its previous range of $1.60 to $1.75. For the full-year, the company predicts it will net $6.40 to $6.70 a share, that's at least 30 cents below the previous range of $6.70 to $7.10 a share. Given the new guidance, FedEx will likely miss Wall Street's call by a wide margin. According to Thomson Financial, analysts were hoping for $1.78 for the second quarter, and $6.87 for the entire year.
With oil coasting near the $95.00 mark, fuel costs have weighed heavily on many transport stocks. Meanwhile, weak industrial production has also dragged on profits. "Our fuel costs have increased more than eight percent, or $85 million," Chief Financial Officer, Alan B. Graf, said. "While we have dynamic fuel surcharges in place, they cannot keep pace in the short-term with rapidly rising fuel prices. In addition, less-than-truckload freight trends in the FedEx Freight segment remain weak, despite economic signs that the decline in U.S. industrial production has hit bottom."
UNITED Parcel Service (UPS) recently announced a net profit increased of 3.7 per cent in the third quarter of this year. Driven by the strong overseas demand and the good performance in the supply chain and cargo transportation department, the net profit of UPS in the third quarter grew to US$1.08 billion from last year's $1.04 billion, UPS said in a company statement. While total revenue of the company increased 4.7 per cent to $12.21 billion in the third quarter, up from last year's $11.66 billion, the report said. Although the economic growth of the United States slowed down, UPS's small package delivery business improved with revenue rising to $7.55 billion and international package delivery revenue climbing to $2.53 billion, the report said.
HONG KONG's freight forwarding and logistics group BALtrans is forecasting that its operations in the Netherlands will grow 40 per cent growth in turnover and freight volume in 2007. The optimist outlook comes on the back of achieving the largest increase in revenue in the current International Air Transport Association (IATA) league table of Dutch airfreight agents, said a company release. BALtrans Netherlands' performance in 2006 enabled it to jump 48 places from number 71 to the 23rd spot in the Dutch rankings. "This is a tremendous achievement of which we are very proud. It symbolises recognition both from the market and our airline service partners, and was the direct result of the sheer hard work of the entire BALtrans Netherlands team," said Michel Loots, BALtrans regional managing director. "After such a positive start, we are very optimistic that we can maintain our fast growth with the support of the growing BALtrans worldwide network, said the company release." BALtrans Netherlands started in October 2005 and the company now employs 45 in at its Amsterdam and Rotterdam facilities, which include a total of 7,500 square metres of warehouse space. In addition to its main airfreight forwarding business, BALtrans Netherlands provides ocean forwarding, LCL groupage, and third-party logistics services, which focus on providing urgent ship spares to a number of major shipowners.
FEDEX Corporation has announced plans to raise the net average shipping rate for FedEx Express by 4.9 per cent, which is composed of a 6.9 per cent increase in standard list rates, offset by a 2 per cent reduction in the fuel surcharge. The new rates will be introduced from January 7 and will apply to US and US export express package and freight shipments. Rates and surcharges for FedEx Ground also will increase for 2008, the company said. "FedEx continues to provide market leading express services," said Michael Glenn, FedEx executive vice president, market development and corporate communications in a company statement. "These rate adjustments will allow FedEx to continue making the necessary investments in our business so we can continue to give our customers a superior shipping experience." In 2008, FedEx Express customers importing goods to the US will be required to pay US dollar rates. Increases in rates for shipments inbound to the US from certain international locations will also take effect January 7, a company statement added.
INTERNATIONAL express company DHL has enhanced its overnight route between Hong Kong and Beijing by increasing its dedicated flight frequency to meet the growing demand for cargo capacity fuelled by the robust trade growth between Hong Kong and the mainland. Because of added flights, said a DHL statement, customers using the 10 times a week dedicated service have more delivery options for Hong Kong-Beijing shipments. This represents a 25 per cent increase in capacity. Part of the enhancement with be the deployment of the larger Boeing B727-200F aircraft operated by Air Hong Kong, a 60/40 joint venture between Cathay Pacific and DHL. This will result in a 58 per cent increase in capacity as the new freighter can carry 24 tons per sector.
LONDON's cargo carrier Coyne Airways has launched a new twice-weekly service using Boeing 747-200 freighter to Almaty, Kazakhstan's principal city, its ninth destination in the country. Flights will depart Thursdays and Sundays from Hahn Airport in Germany, arriving in Almaty at 1800 hrs on Thursdays and 2000 hrs on Sundays. Coyne will also market capacity to Moscow, served by the 747F en route to Almaty. The carrier is selling the service to freight forwarding customers in the United States and Canada as well as the UK and Ireland to meet increasing demand. Coyne will work with its interline partners to transport cargoes to Almaty from US and Canada on a through air waybill. From UK and Ireland, shipments will be trucked to Hahn to connect with the 747F departures. In addition to Almaty, Coyne Airways also provides regular all-cargo services to the Kazakh cities of Aktau, Atyrau, Uralsk, Aktobe, Astana, Chimkent, Aksai and Kzyl-Orda. Coyne Airways has been providing cargo services to difficult-to-reach destinations since 1994, pioneering routes into the Caucacus, Central Asia, the oil and gas rich Sakhalin Island, Iraq and Afghanistan.
For the first time since 1998, the U.S. and Japan have expanded their air services agreement, particularly benefiting UPS and Polar Air Cargo. UPS will be able to operate six daily flights from the U.S. to Central Japan International Airport (Centrair) in Nagoya, besides its existing services to Tokyo's Narita and Osaka's Kansai airports. It also will have beyond rights from Centrair to Shanghai [which FedEx does not]. Polar gains six flights, split between Centrair and Kansai. The accord expands code-sharing operations for Delta and U.S. Skyteam members to Narita. Further talks are set for 2008.
INTERNATIONAL express company DHL has enhanced its overnight route between Hong Kong and Beijing by increasing its dedicated flight frequency to meet the growing demand for cargo capacity fuelled by the robust trade growth between Hong Kong and the mainland. Because of added flights, said a DHL statement, customers using the 10 times a week dedicated service have more delivery options for Hong Kong-Beijing shipments. This represents a 25 per cent increase in capacity. Part of the enhancement with be the deployment of the larger Boeing B727-200F aircraft operated by Air Hong Kong, a 60/40 joint venture between Cathay Pacific and DHL. This will result in a 58 per cent increase in capacity as the new freighter can carry 24 tons per sector.
LONDON's cargo carrier Coyne Airways has launched a new twice-weekly service using Boeing 747-200 freighter to Almaty, Kazakhstan's principal city, its ninth destination in the country. Flights will depart Thursdays and Sundays from Hahn Airport in Germany, arriving in Almaty at 1800 hrs on Thursdays and 2000 hrs on Sundays. Coyne will also market capacity to Moscow, served by the 747F en route to Almaty. The carrier is selling the service to freight forwarding customers in the United States and Canada as well as the UK and Ireland to meet increasing demand. Coyne will work with its interline partners to transport cargoes to Almaty from US and Canada on a through air waybill. From UK and Ireland, shipments will be trucked to Hahn to connect with the 747F departures. In addition to Almaty, Coyne Airways also provides regular all-cargo services to the Kazakh cities of Aktau, Atyrau, Uralsk, Aktobe, Astana, Chimkent, Aksai and Kzyl-Orda. Coyne Airways has been providing cargo services to difficult-to-reach destinations since 1994, pioneering routes into the Caucacus, Central Asia, the oil and gas rich Sakhalin Island, Iraq and Afghanistan.
SHENZHEN Baoan International Airport handled 345,000 tons of cargo in the first seven months of the year, an increase of 14.5 per cent, Logistics Week reported. The above figure shows Shenzhen airport is catching up to Beijing Capital Airport, Shanghai Pudong Airport and Guangzhou Baiyun Airport, while shaking off the trailing Chengdu and Kunming airports, the report said.
PILOTS employed by Astar Air Cargo have authorised their union to call a strike after more than two years of contract talks ended without agreement. The Air Line Pilots Association (ALPA) said 97 per cent of its members voted to authorise a strike, which could take effect when the US National Mediation Board releases both parties from talks, said a report by the Business Courier of Cincinnati. It cited an ALPA statement saying that the representatives of the carrier and the union have not been able to resolve wide differences on wage and compensation issues despite working with mediators for 10 months. Contract negotiations started in January 2005. Miami-based Astar provides airfreight services for DHL and the US Postal Service.
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DEUTSCHE Lufthansa has announced that it's founding a joint cargo airline with Deutsche Post World Net through their subsidiaries Lufthansa Cargo and DHL Express. The new Leipzig-based company will focus on airfreight and express shipments into and out of Asia. Each company owns 50 per cent of the new firm. The new cargo carrier will initially operate with eleven new Boeing 777-200LRF aircraft. The aircraft will be leased and are scheduled for delivery from February 2009. Flight operations begin in April 2009.
The US and Japan are in agreement to expand their air services accord for the first time in a decade, in a bid to provide greater access for cargo and passenger flights and connecting services to other parts of Asia. The amended agreement presents additional opportunities for cargo carriers in the transpacific market, as well as limited expansion for passenger airline alliances, reports the Financial Times. UPS will be allowed to add six daily flights to Nagoya to its existing daily services to Tokyo and Osaka, and connect these to its regional hub in Shanghai. Polar Air Cargo has been granted the rights to commence services to Osaka. "With the establishment of our hub in Shanghai and its formal opening next year, the opening of air lanes between Nagoya and Shanghai will improve our services to customers throughout Asia, especially China and Japan," said UPS Asia Pacific president Ken Torok in a British Transport Intelligence report. More talks aimed at further liberalisation of the route are expected to take place before next summer, according to the US Transportation Department as Japan faces stiffer world pressure to establish an "open skies" policy amid greater competition from airports in China and South Korea. But the Japanese transport ministry said the US should not expect more access to Tokyo's Haneda airport until at least 2010 when a new runway is completed, the Financial Times said.
Air China Cargo Co. has launched a new freighter service from Shanghai to Manchester via Beijing and Copenhagen, Logistics Week reported. The new service, which began September 1, uses Boeing 747-400 freighters on three flights a week on Tuesdays, Thursdays and Saturdays, the report said. With the new route, Air China Cargo now offers eight freighter services.
HONG KONG's Cathay Pacific Airways and its unit Dragonair handled a total of 142,597 tons of cargo in August, a 12.1 per cent increase year on year. The Cathay-Dragonair monthly load factor dropped 1.7 per cent year on year to 65.3 per cent while capacity increased 14.1 per cent. Year to date, the combined cargo tonnage rose 1.7 per cent to 1.03 million tons against a capacity rise of 6.5 per cent. "The cargo market showed signs of becoming more buoyant in August, though our tonnage growth still lagged behind growth in capacity," said Cathay cargo chief Ron Mathison. "Demand out of mainland China continued strong, but yield remained under pressure on northeast Asian routes. We recently added another flight each week to Dallas and Atlanta, turning it into a daily service," said Mr Mathison. Said Cathay sales chief Ian Shiu: "The strong traffic we saw in July continued through August for both Cathay Pacific and Dragonair boosted by the summer holiday peak."
KOREAN Air has launched a new service to Munich, Germany with twice-weekly regular cargo flights. To implement the new service, Korean Air adjusted its cargo route from Incheon to Moscow, Frankfurt and back to Incheon to a new one that goes from Incheon to Moscow, then Munich and Incheon again. It operates on Thursdays and Sundays. Korean Air will operate an all-cargo flight eight times a week to Frankfurt. With the added Munich operation, Korean Air expects to ease the cargo flow to and from Germany, the carrier said.
THE newly-established Zhengzhou Airport Logistics Development Co., Ltd., which is also the largest cargo airline in central China's Henan province, has started a service from the provincial capital of Zhengzhou to Delhi in India using a A300 freighter. This was also the maiden flight of the air cargo carrier since it was officially founded on August 31, said Xinhua News Agency. Zhengzhou Airport Logistics Development has a registered capital of CNY50 million (US$6.6 million). Its majority shareholder is Henan's local logistics company Linde Group. The carrier also plans to launch Zhengzhou-Europe-Africa service via Parchim Airport, which is Linde Group's air operations base located in northern Germany, close to Hamburg and Berlin. Linde Group bought 100 per cent stake of Parchim Airport including its land, assets, all equipment and installations in May and became the first Chinese company to acquire the permanent operating rights to an airport in Europe.
AFRICA and India are the world's new airfreight frontiers, according to Emirates SkyCargo senior vice president Ram Menen, who sees both as big global exporters and importers of high quality goods in two to three years. "We are concentrating a lot on Africa. Africa is our new frontier," he told the Hong Kong Shipping Gazette at the Asian Aerospace 2007 fair in Hong Kong last week. "Nigeria is really swinging, but it is happening everywhere." Mr Menen said the Arab lands of the north tend to be a few steps ahead of sub-Saharan Africa in the development of a middle class and a readiness to buy and sell air freighted high-value goods. "But it won't take long for them to catch up," he said. "India," said Mr Menen, "is energising, though it hasn't energised yet. China has a more disciplined work force, but India has the great advantage of [the English] language." He reckons that 30 per cent of India's population - urban dwellers - are already in the middle class. "And the 70 per cent in the rural areas are well positioned to play a role in manufacturing exports," he said. Mr Menen also noted that China has focused diplomatically on Africa and invested heavily as part of Beijing's "win-win" policy in which it presents itself as a business partner rather than a source of charity. Emirates SkyCargo serves 12 cities in the Far East, offering 10 Boeing 747-400F freighter services a week from Hong Kong to Dubai, of which three are code shared with SAS.
LUFTHANSA has invested in a new air cargo terminal in north China's logistics hub Tianjin where demand for air cargo transport grows steadily, Xinhua reports. The facility, with an annual capacity of 600,000 tons, is located next to the Tianjin Airport in the Tianjin Free Trade Zone and is expected to commence operation in April. The German air carrier made the investment jointly with Tianjin Airport International Logistics Zone and a Taiwan-based company. A joint venture company with a registered capital of US$20 million has been set up to manage the terminal. Lufthansa already has two joint venture cargo terminals, one in Shanghai Pudong Airport, and the other at Shenzhen Airport. A senior manager from the administration authority of the Tianjin Airport International Logistics Zone said Lufthansa also plans to launch a Tianjin-Europe cargo line. During the first quarter of this year, three new international cargo lines were added to the Tianjin Airport, bringing 14 additional services a week. The airport is currently operating 13 cargo lines with 50 weekly services.
ABU DHABI's Maximus Air Cargo has expanded its fleet of wholly-owned Russian Ilyushin Il-76TD and Antonov An-124-100 Ruslan aircraft as well as an Airbus A300-600 and a Lockheed L-100-30 (L-382G) Hercules. This brings the fleet size of this all-cargo airline in the United Arab Emirates to eight aircraft in total. Established in 2005, Maximus is an operator of outsized cargo aircraft in the Middle East. It said in a statement that its plans are firmly focused on adding additional all-cargo aircraft to its fleet and expanding its portfolio in the aviation support services. Employing more than 100 people, Maximus manages the air transport needs and logistics solutions of royalty, governments, multi-national companies and humanitarian/relief organisations. Maximus' Hercules is a stretched civilian variant of the military C-130 and it brings with it the capability to operate from unprepared runways with a take-off run of around 1,200-metres.
SHANGHAI Pudong International Airport plans to open an air cargo terminal in the third quarter of 2008, Xinhua reports. The terminal, located in the West Cargo Terminal Area of Pudong airport, is currently under development and will cover an area measuring 550,000 square metres. The facility has been designed to handle up to 1.2 million tons of cargo annually. The 8.4-square-kilometre West Cargo Terminal Area of Pudong airport is equipped with 18 cargo jet berths and cargo terminals, and transit hubs for Pudong-based airlines. Statistics show Pudong airport handled 1.13 million tons of cargo in the first half of this year, an increase of 16.3 per cent over the same period last year.
TWO Shanghai-based air cargo carriers, Shanghai Airlines Cargo International and Great Wall Airlines, have applied to Chinese aviation authorities to operate lucrative China-US cargo routes. Shanghai Airlines Cargo is seeking to launch a six-times weekly Shanghai-Anchorage-Los Angeles service and a five-times weekly Shanghai-Anchorage-Chicago service in September. In addition, it aims to offer a four-times-weekly Shanghai-Anchorage-Los Angeles-Dallas-Anchorage-Shanghai service in April 2008. All of these services will use Boeing 747s and MD-11 freighters. At the same time, Great Wall Airlines has submitted an application to launch a Shanghai-Seoul-Anchorage-Los Angeles service, and Shanghai-Seoul-Anchorage-Chicago service, starting March 1 next year. Both services are thrice-weekly and will use Boeing 747s, Xinhua reports.
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FedEx's acquisition of DTW Express and TNT's acquisition of HOAU Logistics has triggered a wave of merger in the Chinese logistics industry, FedEx China vice president Eddy Chan told the Shanghai Security News. Mr Chan said this is because of China's fast economic growth and greater market freedom, adding that mergers and acquisitions are a way local companies can survive and grow stronger through the elimination of smaller firms. Companies seeking merger should look for four factors, said Mr Chan. The first is the complementarity of the merging businesses. For example, a company with an extensive network in east China should consider acquiring one with a vast network in the southern market. In addition, the merging companies should share a common corporate culture, he said. FedEx thoroughly considered the corporate culture before the acquisition of DTW, said Mr Chan, adding that they share the same long-term development target and both emphasise service quality, he added.
FedEx's acquisition of DTW Express and TNT's acquisition of HOAU Logistics has triggered a wave of merger in the Chinese logistics industry, FedEx China vice president Eddy Chan told the Shanghai Security News. Mr Chan said this is because of China's fast economic growth and greater market freedom, adding that mergers and acquisitions are a way local companies can survive and grow stronger through the elimination of smaller firms. Companies seeking merger should look for four factors, said Mr Chan. The first is the complementarity of the merging businesses. For example, a company with an extensive network in east China should consider acquiring one with a vast network in the southern market. In addition, the merging companies should share a common corporate culture, he said. FedEx thoroughly considered the corporate culture before the acquisition of DTW, said Mr Chan, adding that they share the same long-term development target and both emphasise service quality, he added.
CHINA customs authority has introduced the "Cross-border Rapid Customs Clearance System" to air cargo transportation between Guangzhou's Baiyun Airport and Hong Kong, Xinhua reports. With the new system, America's Northwest Airlines launched a cross-border rapid customs clearance trucking service from Hong Kong to Guangzhou. Air cargo from Hong Kong to the US can now be loaded on Northwest Airlines' trucks, sealed by the customs in Hong Kong and directly delivered to Baiyun Airport without a second customs application procedure at Hong Kong-mainland border checkpoint Huanggang. After the cargo arrives in Baiyun Airport, they will be loaded onto a Northwest Airlines freighter, which will depart at 1700 hrs the same day and fly to the US with a stop in Japan. Northwest Airlines operates one flight a day in Baiyun Airport and handles 3,000 tons of cargo a month. The truckers will also provide daily service, and if it develops as well as expected, Northwest Airlines will consider adding another freighter to the Baiyun run, an airline official said.
UNITED Parcel Service (UPS) has begun constructing its air hub in Shanghai, Xinhua reports. Located in Shanghai's Pudong International Airport, the hub will cover an area measuring 96,000 square metres and is expected to open next year. The air cargo handling facility will provide express delivery, distribution and air freight services 24-hours a day, seven days a week. Its sorting capacity is projected to reach 17,000 pieces per hour. "The opening of this hub will ensure we are well-positioned to support the explosive growth in Asia's regional trade," said UPS chairman and CEO Mike Eskew. China export volume growth at UPS has been robust and the outlook remains bright, said Mr Eskew. The export volume of the company in China surged 25 per cent in the second quarter of this year, driving the growth of UPS operations in the Asia Pacific region, which expanded by 20 per cent during this period. "It is expected that half of the exports from Asia will be handled in China by 2012," said Li Songjiang, vice president of UPS China. The company handles 100 flights per week at Pudong International Airport, including 24 domestic flights operated by Yangtze River Express.
RISING costs, salaries and fuel prices have put air cargo carriers in a position to introduce higher freight rates, after several years of flat growth, says a US industry association. "This issue has always been a hot potato with forwarders," said Nolan Palud, spokesman for the San Francisco Air Cargo Association in a report in Logistics Management magazine. "The airline pricing departments are responsible for formulating rates based on what it actually costs to provide lift," Mr Palud said, also noting that rates had been low for 40 years. "Rates are further confused by tacking on surcharges rather than demanding across-the-board increases." Said Giovanni Bisignani, CEO of the International Air Transport Association (IATA): "The pick-up in freight, led by Asia, could be the first sign of strengthening demand." According to IATA data, average air cargo load factors have so far remained strong at 73.7 per cent this year, an improvement of 0.1 per cent year todate." But Mr Bisignani added other factors at play: "We will be watching intensifying competition from other modes of transport and structural changes such as manufacturers producing lighter goods." IATA predicts that 2007 will be the first profitable year for the industry since 2000, owing to high load factors and efficiency gains, the report added.
CATHAY Pacific Airways says combined traffic figures for the airline and its subsidiary Dragonair for July 2007 show that cargo tonnage has risen over the same month last year, but lagged behind the rise in capacity for the same period. In July Cathay Pacific and Dragonair carried a total of 132,947 tonnes of cargo, an increase of 4.1 per cent over the same month a year ago, while the cargo load factor dropped by 3.1 percentage points to 66.1 per cent. Capacity for the month, measured in terms of available cargo and mail tonne kilometres, jumped by 10 per cent. For the year to date, combined cargo tonnage rose by 0.2 per cent compared to a capacity rise of 5.4 per cent. "There has been a continuing shift to ocean freight and yield is under pressure particularly on our NE Asian routes. However, demand out of mainland China remains strong and we will add more long-haul capacity to India, United States and Europe in the second half, which should boost tonnage growth," said Cathay cargo chief Ron Mathison.
WILMINGTON, Ohio-based ABX Air has begun a two-year agreement to support the Asian cargo operations of All Nippon Airways (ANA) of Japan, reports the Dayton Daily News. ABX has deployed two Boeing 767 freighters and recently flew its first cargo flight for ANA from Osaka to Dalian and expects US$22 million a year from its All Nippon deal. ABX said it will spend $23 million to buy a Boeing 767-200 long-range aircraft from Air China for international cargo service. "The Asia-Pacific region is the fastest-growth area in the world," said David Campbell, an industry analyst who follows ABX Air for Thompson, Davis & Co.
REPRESENTATIVES of Gulf Air Cargo have attended a two-day annual conference in Bahrain where they formulated strategies for the coming year. Over 90 members of Gulf Air's cargo marketing and sales team converged in Bahrain for the meeting. As part of the company's ongoing restructuring programmes, top management met with worldwide cargo representatives to analyse past performance and build the foundations for the future. Topics of discussion at the conference included changes in policy resulting from the implementation of a new network and preparations for Bahrain becoming Gulf Air's hub. The meeting also touched on issues related to the IATA e-freight programme. Key speakers included David Marton, general manager of DHL Express in Bahrain, in addition to partners from the Bahrain Civil Aviation Authority and the Bahrain Airport Services (BAS). The conference also included regional workshops where employees from individual stations had a chance to discuss 2007 revenue targets and the support required from headquarters to achieve desired results, a statement said.
MEMPHIS International Airport has hired Inman Construction to build the first phase of its distribution park called Cargo Central. The new facility will be home to cargo companies such as DHL, ABX Air, Atlas Air, and many others currently based on Cargo Road, said a statement from CoStar Group, a provider of commercial real estate information. The facility, said CoStar, will be developed in five phases: Air Cargo Building One is a US$6.9 million, 36,000-square-foot warehouse currently under construction with an expected delivery date of May 2008. An additional 61,500 square feet will be added as each phase progresses. The aim is to provide its smaller cargo tenants with more room to do business efficiently and grow their cargo handling activities. The airport also intends to attract new cargo business. Inman Construction has been charged with balancing the airport's needs for high security and hazardous materials storage, while providing business-friendly areas and comfortable management spaces. Memphis International Airport has maintained its number one ranking as the top air cargo handler in the world since 1992, according to statistics reported by Switzerland-based Airports Council International. The tenant-line up includes express transport giant FedEx dominating 95 per cent of all cargo transports at the airport 24 hours a day, the report added.
VOLGA-DNEPR Group's second new-build IL-76TD-90VD freighter has started undergoing tests at the Chkalov TAPO production plant in Russia before joining the airline's fleet. Volga-Dnepr took delivery of the first ever IL-76TD-90VD in June 2006. The aircraft has since restarted services to Europe, North America, Australia and Japan. These places were off limits to older versions of the IL-76 in 2000 due to noise level restrictions, a company statement said. Volga-Dnepr's second aircraft has been financed by Sberbank through a seven-year line of credit for RUB450 million (US$17.7 million) to Volga-Dnepr Leasing. The Group commenced its programme to modernise the Ilyushin IL-76TD freighter in 2002 and, two years later, Volga-Dnepr Leasing was established to lead the project. "The IL-76TD-90VD is an important aircraft in Volga-Dnepr's fleet and its unique operating capabilities make it an extremely popular aircraft with our customers all over the world. In 2006, the new aircraft generated the third highest contribution to the Group's revenue and profitability and its performance exceeded all expectations," said Volga-Dnepr Leasing technical director Andrew Pakhomov. The modernised aircraft is equipped with PS-90A-76 engines and the Kupol-III-76MVD aircraft navigation system. The IL-76TD-90VD has a higher cargo payload of 50 tons and an extended maximum flight range. As well as reducing the frequency of maintenance checks, the new aircraft also slashes the number of flight crew required. The new Ilyushin IL-76TD-90VD aircraft is said to be the most fuel efficient ramp aircraft for cargo in the 20 to 50-ton range. The cost of transporting one ton of freight using the IL-76TD-90VD is around half the cost of moving cargo on a Hercules freighter, the only equivalent western aircraft, it said.
FEDEX Express, Microsoft, Citibank, Coca-Cola, Nokia and Intel have been named the "2006 Most Influential Multinationals in China" in a China-wide vote by major business and academic institutions. FedEx, the only transport firm to receive the honour, was selected by a poll co-organised by Shanghai Securities News and Peking University's Guanghua School of Management. It involved a large-scale study to cover local and overseas-listed companies as well as multinationals in China. Aiming to identify best practice in the Chinese market, the study tracked financial performance, corporate management, investment return and social responsibility. The panel of experts included professors from Peking University, officials and scholars from government institutions including the National Development and Reform Commission, the Ministry of Finance, state-owned Assets Supervision and the Administration Commission. "China continues to play a key role in the FedEx Asia-Pacific strategy," said FedEx Asia Pacific president David Cunningham. "FedEx is well positioned not only in facilitating trade between China and the rest of the world, but also within China."
ATLAS Air Worldwide Holdings (AAWW), a provider of global air cargo services, has reported sharply higher profit for the second quarter compared with second quarter of 2006. This is said to reflect a continuing improvement in aircraft utilisation due to proactive asset management, sustained operational execution, the positive impact of the company's "continuous improvement initiatives", increased AMC charter demand and reduced net interest expense. Earnings for the quarter included a substantial tax benefit related to DHL Express' investment in Polar Air Cargo Worldwide, in which DHL acquired a 49 per cent equity interest in exchange for US$150 million in cash. For the June 30 quarter, AAWW earned $43.2 million, 304 per cent more than in the second quarter of 2006. Revenues for the quarter totalled $370.4 million, with operating income of $31.2 million and pre-tax income of $25.2 million. Net income reflected a tax benefit of $18 million, which was driven by a net tax benefit in connection with the DHL transaction that reduced income tax expense in the quarter by $27.7 million. "With a 16 per cent smaller fleet, we generated better revenues, operating earnings and margins," said AAWW chief executive William Flynn. "With EBITDA up 19.7 per cent and EBITDAR up 10.1 per cent, and we are executing on our strategic plan to deliver even stronger earnings and growth." Operating income increased to 8.4 per cent of revenues in the second quarter of 2007 from 8.3 per cent in the second quarter of 2006, while EBITDA increased to $41.3 million, and EBITDAR improved to $80.0 million. Average utilisation of operating aircraft on a block-hours-per-day basis increased 15.3 per cent during the quarter compared with the year-ago quarter. Including the company's dry leasing activities, operating income per aircraft on a total fleet basis increased 13.4 per cent to $0.8 million, with EBITDA per aircraft rising 33.0 per cent to $1.1 million and EBITDAR per aircraft rising 22.3 per cent to $2.2 million. The "continuous improvement initiatives" contributed $14 million of savings to second quarter results. By year-end, the company expects to realise in excess of $65 million in savings over the year, and remain on track to achieve more than $100 million more savings in 2008.
Six major Indian air cargo carriers are expected to commence operations within the next 18 months, with even more joining the national airfreight race along the way, according to India's Business Standard. Apart from Air India and Jet Airways, both with all-cargo units, start-ups like Flyington Freighters and non-scheduled operators like Aryan Cargo Express and Air Cargo Express, are expected to start by year's end or in early 2008. A Centre for Asia Pacific Aviation (CAPA) study said India is among the top 30 freighter markets in the world with volumes growing nearly 11 per cent last year and the market projected to grow 20-30 per cent for the next 10 years. Although export cargo still dominates volume by 3:2, domestic cargo is growing faster. According to the Airports Authority of India, there was a 7.3 per cent increase in international cargo for April year on year while domestic cargo traffic grew 13.4 per cent. And with food retail rising fast, speed becomes very important, said Mukul Pathak, spokesman for Aryan Cargo Express. Indian carriers handle 12-15 per cent cargo volumes while international players handle the rest. Bluedart, with a market share of 40 per cent, is the only carrier with dedicated cargo services. It is followed by Jet Airways, which has 30 per cent of the market after its merger with Sahara. Flyington Freighters, viewed as one of the most prominent air cargo players, being India's only all-airfreight carrier, runs scheduled operations to China, East Asia, Hong Kong, Japan, Malaysia, West Asia, Los Angeles, New York and Europe from its Hyderabad hub. The airline is expected to start later this month with two leased A330-200Fs.
JADE Cargo International has started operating thrice-weekly flights from Frankfurt to Shenzhen. The Chinese cargo carrier flew to Frankfurt, Germany with a Boeing 747-400ER Freighter, said a statement from Lufthansa Cargo, which is marketing the flight's capacity ex-Frankfurt to Shenzhen. On the flight from Shenzhen to Frankfurt, Jade Cargo International and Lufthansa Cargo are sharing the freighter's total cargo capacity of around 100 tonnes. "Jade Cargo International is augmenting Lufthansa Cargo's network with its service into and out of Frankfurt. It will allow us to offer our customers even faster transit times, competitive rates and optimally co-ordinated flight schedules to the prospering Pearl River region," said Lufthansa Cargo CEO Carsten Spohr. Jade Cargo International is already serving Barcelona, Amsterdam, Stockholm, Luxembourg, Brescia, Shanghai, Seoul and Osaka with its fleet of four 747-400ERF freighters. The Chinese cargo carrier is planning to add transpacific connections to its flight schedules in autumn. Shenzhen Airlines owns 51 per cent of Jade Cargo International, Lufthansa Cargo has 25 per cent while DEG (Deutsche Investitions-und- Entwicklungsgesellschaft) has a 24 per cent share.
UNITED Airlines has reported that in July its passenger load factor was 87.3 per cent while cargo ton miles grew by 5.5 per cent to 168.93 million year on year. Total scheduled revenue passenger miles (RPM) decreased in July by 1.4 per cent to 10.92 billion miles on a capacity decrease of one per cent in scheduled available seat miles (ASM) to 12.50 billion miles compared year on year. United operates flights to more than 200 US domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, DC.
ATLAS Air Worldwide Holdings (AAWW) has revealed it has hired two former DHL Express executives to help lead operations at the Harrison New York-based company's Polar Air Cargo Worldwide Inc. subsidiary, reports The Westchester Journal. Randy Clark has been named Polar's chief operating officer following an agreement with DHL Express that includes the acquisition of an equity stake in Polar and a 20-year commercial arrangement. In addition, Olivier Alexandroff, formerly vice president at DHL Express US, was named Polar's chief financial officer. Atlas Air and DHL said in November that they had agreed to a 20-year commercial arrangement that will give DHL access to Polar's six Boeing 747-400 Freighters and other benefits. Atlas Air estimated the deal would bring in up to US$3.5 billion in revenue. "As part of DHL Express's equity stake in Polar Air Cargo Worldwide, we welcome Randy, who is transitioning to Polar to support the success of this strategic partnership," said William Flynn, CEO of AAWW.
UPS has taken delivery of its first Boeing 747-400, soon to be deployed on its long-haul international routes in the Asia-Pacific region. The new freighter is expected to fly to Hong Kong, Incheon, Sydney and Shanghai, where UPS is building its China air hub, reports UK Transport Intelligence. After a while the aircraft will focus primarily on serving Cologne, Dubai and Mumbai as part of the company's round-the-world service. "As we continue to see strong international growth, the 747-400 is a perfect fit for UPS," said its chairman and CEO Mike Eskew. "It has tremendous range and payload capacity so we can satisfy the need of customers to move packages and freight overseas. This is a plane that has a strong record in safety, reliability and environmental friendliness." UPS will take delivery of a three more new 747-400s this year and another five next year. The company also plans to purchase five more of these aircraft from other carriers by 2010, bringing the total fleet size to 13. The 747-400 has a payload of 273,300 pounds with a range of 4,400 nautical miles. It has 30 load positions on its main deck and can carry 32 smaller containers on its lower deck. General Electric CF6-80C2B5F engines power the aircraft.
Atlas Air subsidiary Polar Air Cargo and DHL Express on June 28 sealed a $150-million deal that will give DHL Express a 49% equity share and 25% voting interest in Polar. The deal also includes a 20-year blocked-space agreement that will give DHL access to Polar's capacity in certain markets (particularly U.S.-Asia routes) and on some Atlas aircraft. Atlas Air and DHL Express estimate the parnership could generate more than $3.5 billion in revenues. The closure follows decisions from the U.S. Transportation Dept. issued earlier last week that finalized awards of new interstate and foreign operating certificates.
Singapore Airlines Cargo is cutting bck in response to the freight market slowdown, offering 10% less capactiy between April and August compared with last year. The cargo business operated slightly below is calculated break-even load factor of 63.8% last year.
CATHAY Pacific Airways says that traffic figures for June combined with its subsidiary Dragonair show a rise in cargo and passenger volume over the same month last year as the airline entered the summer peak season. The amount of cargo lagged behind the corresponding increase in capacity for the month, a statement said. The amount of cargo carried by Cathay Pacific and Dragonair last month was 129,169 tonnes, up 1.3 per cent over June 2006. The cargo load factor fell by 3.4 percentage points to 67 per cent. Capacity, measured in terms of available cargo and mail tonne kilometres, saw a 7.8 per cent jump. In the first half of the year the combined cargo tonnage fell by 0.4 per cent compared to a capacity rise of 4.6 per cent. "Demand remains high out of mainland China and loads on our long-haul flights to North America and Europe have been satisfactory," said Cathay cargo chief Ron Mathison. "The continued influx of capacity into the region has been keeping down freight rates, while competition from marine cargo is having an impact, particularly on North Asian routes. However, we remain confident about the long-term prospects for airfreight in the region and expect to see some pickup soon," Mr Mathison said.
INDIA's air cargo sector is set to boom, according to a Directorate General Civil Aviation statement that the 1.3-million tonne market is growing at 20 per cent a year, reported The Financial Express. With four new entrants from among the Indian industrial houses expected to start stand-alone cargo airline, experts are talking of aggressive organic growth fuelling the sector's growth, said the newspaper. "There is a buzz largely due to the upswing in India's export profile and the fact that a targeted cargo hub will come up at Nagpur. Currently there is no real hub between Dubai and Bangkok and thus a dedicated hub can kick start this sector," said Kapil Kaul, of Centre for Asia Pacific Aviation. A recent Airbus report predicted that India would order in access of 165 cargo aircraft by 2025. Civil aviation ministry sources say that the country may already be half way there with the Reliance fleet of 40 aircraft and at least that many likely to be ordered in 2008 by new entrants. Sources at Blue Dart, operator of India's biggest cargo airline, told the Financial Express that two new aircraft are likely to be added to the existing fleet of seven dedicated cargo aircraft this year. Emirates, Sri Lankan Airlines, Lufthansa and Cathay Pacific are looking to augment their cargo operations in the country, they said.
EXPRESS delivery giant DHL has commenced an air cargo route connecting mainland China with the United Arab Emirates, Xinhua reports. The new service, which is expected to be DHL's third busiest and fastest-growing route for exports to the UAE, is designed to cut transport times in half from the previous two days to one, as well as raise capacity between China and the Middle East. With the launch of the new service, the report said Chinese shippers will be able to enjoy door-to-door delivery to destinations in the UAE and other Middle East countries. China is the fourth and fastest growing trade partner for the UAE. In 2006, bilateral trade between the two countries rose 32 per cent year on year to US$14.2 billion.
LUFTHANSA Cargo has received the "Best Airline Customer Care" award for customer service in the international airfreight industry. The accolade was presented at international Air Cargo Week based on the votes of international forwarders and shippers. "We are immensely pleased at winning this award," said Andreas Otto, member of the Executive Board Product and Sales of Lufthansa Cargo at the gala awards ceremony in Munich, Germany."In recent years we have worked very hard on improving our quality and expanding our services. The 'Customer Care' prize shows that customers appreciate our efforts," he said. In an earlier speech made by Lufthansa Cargo chairman Carsten Spohr at the Air Cargo Europe conference staged at the Munich exhibition, he noted that making growth profitable in the international aviation industry is becoming increasingly difficult. Turning to the ecological challenges, the Lufthansa Cargo chief pointed out that "the Lufthansa Group has reduced specific fuel consumption by 30 per cent since 1991. Lufthansa Cargo has also made a contribution to that by operating one of the industry's youngest and most fuel-efficient long-haul fleets."
KOREAN Air continues to top the charts as the world's busiest airfreight carrier for the third year in a row. The airline moved 8.68 billion ton-kilometres (tkm), according to figures compiled by the International Air Transport Association, ahead of Germany's Lufthansa with 8.07 billion tkm, reports Chosun Ilbo. In third place came Singapore Airlines, followed by Hong Kong's Cathay Pacific Airways and Fedex. The unit used for measuring cargo volume performance, tkm, is calculated by multiplying the volume of cargo transported by the flight distance.
All Nippon Airways plans to withdraw from international cargo flight services using Chubu Airport near Nagoya this autumn due to low profitability, according to sources close to the matter. ANA will shift its cargo business at Centrair airport to Kansai Airport off Osaka, where its second runway will be in operation in August for around-the-clock flights... [FedEx flies to both these cities.]
NASDAQ-listed ABX Air, Inc. of Wilmington, Ohio, today acknowledged that it had received an unsolicited cash offer to buy all outstanding shares from Astar Air Cargo Holdings for US$7.75 per share, reports Thomson Financial. Deutsche Post unit DHL holds 49 per cent of Astar Air Cargo. ABX directors announced they will evaluate the Astar offer and "will respond in due course". ABX provide airlift capacity and sort facility staffing for DHL. In responding to the offer, Goldman Sachs is acting as financial advisor and O'Melveny & Myers as legal counsel to the ABX. ABX Air, which employs more than 10,000 people, is a cargo airline operating out of a private 2,000-acre airport with 120 acres of paved ramp area with three aircraft maintenance hangars, two runways and 1.24 million square feet of sorting space as well as 17 hubs throughout the US. The company is the largest employer in a several-county area in southwestern Ohio.
Lower-cost electronic flight bags, with own-ship position, may proliferate on airlines. Now that the FAA has decided to certify Class 2 electronic flight bags to show a moving map of the airport surface with a pilot's "own-ship" position marked, more airlines may take the plunge and retrofit these systems. ...a government and industry group studied the problem of runway incursions about four years ago, and it concluded that allowing Class 2 EFBs to display own-ship position on a moving map of the airport surface could cut runway incursions in half. The advantage of these compact Class 2 systems is that, unlike laptop computers, they can be secured in the cockpit in a bracket or a computer docking station and used in flight. Laptop computers...can't be used ina ll phases of flights as Class 2 systems can be...and are more expensive. [FedEx current plans do not include the moving map, and also choose the laptop over the aircraft mounted version.]
LUFTHANSA Cargo has announced that it is discontinuing freighter flights from Cologne to Asia and North America after October 28 and will transfer these operations to the east German city of Leipzig. Flights are being transferred to Leipzig-Halle Airport, said Lufthansa, in conjunction with the opening of the DHL Express main European hub there. DHL Express and Lufthansa Cargo have been jointly operating a route network between Europe, the US and Asia with their Aerologic intercontinental joint venture since 2004 with much of it being run through Cologne. After late October, it will be re-routed through Leipzig. The following flights will then be laid on from Leipzig-Halle: Leipzig - East Midlands - Wilmington/Ohio - East Midlands - Leipzig (thrice weekly). Leipzig - East Midlands - New York - Leipzig (five weekly). Leipzig - Sharjah - Hong Kong - Sharjah - Leipzig (four weekly). Leipzig - Bahrain - Singapore - Delhi - Leipzig (five weekly). Leipzig - Bahrain - Hong Kong - Sharjah - Frankfurt (weekly). There will be no change in the other joint-venture flights.
EXPRESS delivery firm DHL and Lufthansa Cargo plan to establish an air cargo venture, according to Die Welt which quoted an executive close to the negotiations. The joint venture, which has initially been named NewCo, is expected to operate a cargo fleet to transport both express and ordinary freight deliveries within North America, the Middle and Far East. Deutsche Post's express package unit, DHL Express, has launched a service for urgent next-day documents from New York to major European centres. Available for customers with shipments originating from lower Manhattan, DHL's next day delivery offers transfer by courier to the DHL helicopter pad in New York City. Shipments are then flown by helicopter directly to John F Kennedy (JFK) airport, and from there, they move on flights bound for nine cities in Europe. The new service provides next-business-day delivery, available Monday through to Thursday, from New York to Amsterdam, Brussels, Dublin, Frankfurt, Geneva, London, Madrid, Paris, and Zurich.
ACSS has submitted the documentation to the US FAA for certification of its SafeRoute automatic dependent surveillance-broadcast-based cockpit system... Launch customer UPS Airlines plans to install SafeRoute in all its Boeing 747-400s, 757s and 767s. CDTI provides TCAS-like data, but with greater accuracy. M&S provides guidance to manage descent and arrival into crowded terminal areas, increasing airport capacity while reducing fuel use and emissions...
A strategy that could see all Boeing 747 cargo operator Atlas Air Worldwide Holdings acquire mid-size widebody freighters is under preliminary consideration by management...
FEDEX has reported a US$2.02 billion profit for the year ending May 31, a rise of 12 per cent over last year's net earnings of $1.81 billion. The global express delivery and airfreight giant also reported revenues at $35.2 billion, up 9 per cent from $32.3 billion the previous year, an operating income of $3.28 billion, also up 9 per cent year on year from $3.01 billion, and an operating margin of 9.3 per cent unchanged from the year before. "FedEx delivered solid financial results in fiscal 2007 even though we were restrained by a slowing US economy. The weakened industrial sector is limiting demand, but we expect the US economy to begin to show modest year-over-year improvement in the late summer to early fall," said FedEx chairman and CEO Frederick Smith. In the last quarter, FedEx reported a US$610 million profit, an increase of seven per cent over last year's fourth quarter profit of $568 million. FedEx also reported revenue of $9.15 billion, up eight per cent from $8.49 billion in the last quarter of the previous year, an operating income of $1.01 billion, up nine per cent from $927 million earned a year ago, and an operating margin of 11.1 per cent, a rise from 10.9 per cent the corresponding quarter a year ago. Quarterly results include a gain from a settlement with Airbus related to the A380 order cancellation, which had a net benefit to earnings of approximately $0.06 per diluted share, the company said.
Lower-cost electronic flight bags, with own-ship position, may proliferate on airlines. Now that the FAA has decided to certify Class 2 electronic flight bags to show a moving map of the airport surface with a pilot's "own-ship" position marked, more airlines may take the plunge and retrofit these systems. ...a government and industry group studied the problem of runway incursions about four years ago, and it concluded that allowing Class 2 EFBs to display own-ship position on a moving map of the airport surface could cut runway incursions in half. The advantage of these compact Class 2 systems is that, unlike laptop computers, they can be secured in the cockpit in a bracket or a computer docking station and used in flight. Laptop computers...can't be used ina ll phases of flights as Class 2 systems can be...and are more expensive. [FedEx current plans do not include the moving map, and also choose the laptop over the aircraft mounted version.]
LUFTHANSA Cargo has announced that it is discontinuing freighter flights from Cologne to Asia and North America after October 28 and will transfer these operations to the east German city of Leipzig. Flights are being transferred to Leipzig-Halle Airport, said Lufthansa, in conjunction with the opening of the DHL Express main European hub there. DHL Express and Lufthansa Cargo have been jointly operating a route network between Europe, the US and Asia with their Aerologic intercontinental joint venture since 2004 with much of it being run through Cologne. After late October, it will be re-routed through Leipzig. The following flights will then be laid on from Leipzig-Halle: Leipzig - East Midlands - Wilmington/Ohio - East Midlands - Leipzig (thrice weekly). Leipzig - East Midlands - New York - Leipzig (five weekly). Leipzig - Sharjah - Hong Kong - Sharjah - Leipzig (four weekly). Leipzig - Bahrain - Singapore - Delhi - Leipzig (five weekly). Leipzig - Bahrain - Hong Kong - Sharjah - Frankfurt (weekly). There will be no change in the other joint-venture flights.
EXPRESS delivery firm DHL and Lufthansa Cargo plan to establish an air cargo venture, according to Die Welt which quoted an executive close to the negotiations. The joint venture, which has initially been named NewCo, is expected to operate a cargo fleet to transport both express and ordinary freight deliveries within North America, the Middle and Far East. Deutsche Post's express package unit, DHL Express, has launched a service for urgent next-day documents from New York to major European centres. Available for customers with shipments originating from lower Manhattan, DHL's next day delivery offers transfer by courier to the DHL helicopter pad in New York City. Shipments are then flown by helicopter directly to John F Kennedy (JFK) airport, and from there, they move on flights bound for nine cities in Europe. The new service provides next-business-day delivery, available Monday through to Thursday, from New York to Amsterdam, Brussels, Dublin, Frankfurt, Geneva, London, Madrid, Paris, and Zurich.
ACSS has submitted the documentation to the US FAA for certification of its SafeRoute automatic dependent surveillance-broadcast-based cockpit system... Launch customer UPS Airlines plans to install SafeRoute in all its Boeing 747-400s, 757s and 767s. CDTI provides TCAS-like data, but with greater accuracy. M&S provides guidance to manage descent and arrival into crowded terminal areas, increasing airport capacity while reducing fuel use and emissions...
A strategy that could see all Boeing 747 cargo operator Atlas Air Worldwide Holdings acquire mid-size widebody freighters is under preliminary consideration by management...
FEDEX has reported a US$2.02 billion profit for the year ending May 31, a rise of 12 per cent over last year's net earnings of $1.81 billion. The global express delivery and airfreight giant also reported revenues at $35.2 billion, up 9 per cent from $32.3 billion the previous year, an operating income of $3.28 billion, also up 9 per cent year on year from $3.01 billion, and an operating margin of 9.3 per cent unchanged from the year before. "FedEx delivered solid financial results in fiscal 2007 even though we were restrained by a slowing US economy. The weakened industrial sector is limiting demand, but we expect the US economy to begin to show modest year-over-year improvement in the late summer to early fall," said FedEx chairman and CEO Frederick Smith. In the last quarter, FedEx reported a US$610 million profit, an increase of seven per cent over last year's fourth quarter profit of $568 million. FedEx also reported revenue of $9.15 billion, up eight per cent from $8.49 billion in the last quarter of the previous year, an operating income of $1.01 billion, up nine per cent from $927 million earned a year ago, and an operating margin of 11.1 per cent, a rise from 10.9 per cent the corresponding quarter a year ago. Quarterly results include a gain from a settlement with Airbus related to the A380 order cancellation, which had a net benefit to earnings of approximately $0.06 per diluted share, the company said.
[Series of articles on Air Cargo, including:]
ATLAS Air Worldwide Holdings, a global air cargo service provider, reported that its subsidiary, Atlas Air, has entered into a joint-venture agreement to build a warehouse at Incheon International Airport in South Korea. The new facility is intended to enhance the economics and efficiency of services provided to customers of Atlas Air, its sister company, Polar Air Cargo, and Atlas Air's joint venture partners, a statement from AAWW said. The 12,000-square metre Atlas Air Cargo Terminal will be operated by AACT Company Limited, a joint venture that includes Atlas Air and Sharp Inc., a South Korean company that provides maintenance, ground-handling and related support services to Atlas Air, Polar Air Cargo and other airlines at Incheon airport. Construction of the new warehouse is to begin shortly, and is expected to be fully operational by early 2008, when it will become the first at Incheon to include ownership by a foreign carrier since the airport opened in 2001. "We are extremely pleased to be joining with Sharp Inc. and other key investors in South Korea to develop a world-class cargo-handling warehouse at Incheon airport," said William Flynn, AAWW president and chief executive officer. "Sharp has played an important role in the success of our operations at Incheon, and we look forward to working with them and our other joint-venture investors to meet the growing needs of our customers while improving the efficiency, reliability, quality and cost structure of our operations.
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FedEx Corp. plans to establish pilot bases in Paris and Hong Kong, saving it the cost of getting U.S.-based pilots to work and giving it more flexibility as it takes on DHL, the No. 1 courier company in Europe. The Memphis-based company and the pilots' union are discussing an amendment to the pilots' contract, including cost-of-living stipends and details about the planes FedEx intends to fly in each market. [more...]
DHL has acquired for an undisclosed amount a 49 per cent minority interest and a 24.9 per cent voting interest in Astar Air Cargo of Miami, Florida. DHL also extended its contract with the carrier through 2019. The stake is just under federal thresholds that restrict foreign ownership of US airlines, reports The Miami Herald. The acquisition comes four years after the airline, which was known then as DHL Airways, was sold by DHL and a private investor to a group led by former Burger King boss John Dasburg for US$57 million. Astar operates a fleet of 44 aircraft serving US, Europe and Mid-East markets. It directs flight operations out of its Wilmington, Ohio hub with gateways in New York, Los Angeles, and Miami. DHL did not give any reason for buying back Astar, which it said will handle about a third of DHL's express domestic air services in the US. "Today's announcement signals DHL's confidence in the capabilities of Astar and the high quality of air cargo services Astar provides to DHL in the US," said Mr Dasburg. Following the completion of the acquisition, Mr Dasburg and the other senior Astar executives will continue in their current positions, with Mr Dasburg as chairman, president and CEO of Astar. Hans Hickler, DHL Express USA chief executive, joins the Astar board. This purchase comes after DHL recently made aviation investments to support its US operations. The first of these was the company's investment in Polar Air Cargo to provide express delivery services from the US to Asia. DHL also recently announced orders for six Boeing 767-300ER freighters for use mainly between Europe and the United States. DHL is a member of Germany's Deutsche Post group.
DHL, has inaugurated a JPY5 billion (US$41 million) expanded warehouse facility at the Kansai International Airport, the company said. The 10,100-square metre DHL Kansai International Airport Gateway at International Cargo Warehouse C, is the largest facility operated by a foreign express company at the airport. The event was officiated by Scott Price, CEO of DHL Express, Asia Pacific, and Atsushi Murayama, president of Kansai International Airport Co. Ltd. The company declared that the latest investment is part of DHL's commitment to invest almost JPY11 billion in Japan in the next few years. "The expansion of the DHL Kansai International Airport Gateway underlines the strong growth that DHL is experiencing in Japan and Asia Pacific. The expanded gateway complements our other Japan Gateways in Chubu and Narita," said Mr Price.
Executives for McCain - Frederick Smith, CEO, FedEx
Cheap money and strong corporate earnings are fueling the share buyback fad on Wall Street. There's a way to get in on this bonanza: Buy shares of companies that have the means and the motives to do buybacks. Your prospects for capital gains should be good on these stocks. We found eight stocks for the buyback-minded investor. The companies could well expand an existing repurchase plan, ...revive a previous program (FedEx (nyse: FDX))...
THE volume of air cargo handled in April at Dayton International Airport plummeted by 97 per cent to 879 tons, compared to 27,752 tons that passed through the gateway the same month a year ago. The amount of airfreight handled in the first four months of the year has also suffered a 97 per cent year on year drop to 3,654 tons. The massive downturn in business was blamed on a decision by United Parcel Service to close the former Menlo Worldwide Forwarding/Emery Air Freight cargo hub at the airport, reports the Dayton Daily News that cited figures from the airport administration. By stark contrast, the number of travellers using the US airport increased by eight per cent in April over the same month last year to 119,062 passengers. Year-to-date, passenger numbers rose by seven per cent to a total of 440,065, up from 410,514 passengers in 2006. Domestic carriers Delta Air Lines, AirTrain Airways and US Airways Express have been ranked among the airport's top three performing airlines in terms of passenger loads carried, the report said.
ONE of the world's largest express transportation companies, FedEx Corp, recently enlisted the help of Hong Kong windsurfers to help out with deliveries to clients of its subsidiary FedEx Express (FedEx) in Hong Kong. The athletes were none other than Hong Kong star windsurfing couple, Viky Chan Wai Kei and Ho Chi Ho, who participated in the express company's "Courier Ride" programme by joining the team of professional FedEx couriers to demonstrate the "WeLiveToDeliver" spirit by going the extra mile to ensure packages were delivered on time, a company statement said. Chan and Ho represent Hong Kong as part of "Team FedEx", a three-year region-wide sports sponsorship programme, which comprises FedEx-sponsored athletes and teams from key markets across Asia Pacific, the statement explained. "The reasons behind the success of Vicky and Ho in windsurfing are similar to those behind building a successful business in Hong Kong - teamwork and the pursuit of excellence," said Clifton Chua, managing director of FedEx Express Hong Kong, Macau and the Philippines."
A REPORT by the Air Cargo Management Group (ACMG) predicts that the global freighter fleet will expand to 3,883 units in the next two decades, up from 1,801 air freighters at present, to meet growing demand for air freight services. This forecast includes the prediction that more than 1,100 freighters currently in operation will be retired by 2026. "Taking both growth and replacement into account, ACMG predicts the need for more than 3,200 new and converted freighters through 2026, an average of 160 units added per year," Robert Dahl, ACMG's project director, was quoted as saying in a report from domain-b.com in Mumbai. In support of these forecasts, the report pointed to a record backlog of orders for new and converted freighters, saying: "over the next three years, three new wide-body freighter types will enter the market in the form of 777Fs, 747-8Fs, and A330-200Fs". Mr Dahl predicts that wide-body freighters will make up about 64 per cent of the market over the next 20 years, up from more than 50 per cent at present, the report added.
LUFTHANSA Cargo Group, which partly owns Jade Cargo International, are co-operating together to provide direct airfreight flights between Frankfurt and Shenzhen from July 1. The thrice-weekly, non-stop service to Europe's largest air cargo hub from the heart of a major industrial centre in Asia will utilise a new Boeing 747-400ER freighter owned and operated by Jade. Jade Cargo is due to take delivery of its fourth B747-400ERF at the end of this month which will be deployed on this Shenzhen-Frankfurt service. Two more aircraft of this type that make up a total order placed with aircraft manufacturers' plant in Seattle are due for delivery in August and January 2008, respectively. The Jade Cargo International fleet is based at Baoan International Airport in Shenzhen. "This close co-operation is strengthening the Lufthansa Cargo Group. With Jade Cargo International, we can harness excellent growth opportunities arising from a thriving Chinese airfreight market returning two-digit growth rates," said Lufthansa Cargo CEO Carsten Spohr. Jade Cargo International and Lufthansa Cargo will be sharing the total carrying capacity on each flight which amounts to around 100 tonnes of cargo. "Jade Cargo International is augmenting the Lufthansa Cargo network with its new service perfectly. With it, we will be offering our customers faster transport times, excellent quality, competitive rates and optimally coordinated flight schedules to the fast-growing Pearl River Delta in south eastern China."
CHINA Southern Airlines has issued a statement saying it has been in talks with Air France about setting up a cargo airline, reports Xinhua. While China Southern conceded joint venture talks were underway, the statement released by the company stressed that discussions were still at an early stage. China Southern is the only one of the top three carriers on the mainland that does not have a cargo unit. China Eastern and Cosco established China Cargo Airlines in 1998, Air China has had Air China Cargo since 2003 and Shenzhen Airlines established Jade Cargo International with Lufthansa in 2005. China Southern vice general manager Xu Jiebo told The Shanghai Securities News last year that his company was seeking co-operation with Air France-KLM and other Sky Team member airlines. Analysts believe that China Southern prefers European and American airlines as partners because it hopes to promote sales of cabin space for cargo planes on their way back to China from abroad.
ABX Air has announced that its first-quarter net earnings plummeted 47.3 per cent to US$4.3 million compared with $8.1 million a year earlier, according to a company statement. Revenue at the close of the quarter on March 31 was also down by 22 per cent to $288.1 million from $369.2 million last year. The airline explained in a statement that the Q1 results when compared with the same three-month period last year, were affected by a deferred (non-cash) income tax expense of $2.6 million. The statement pointed out that net earnings for the first quarter of 2006 were also affected by the takeover in the second quarter of last year of its truck line haul operation by ABX Air's principal customer, DHL. "As expected, the 2007 non-cash income tax expense and last year's transition of line-haul to DHL had a significant effect on year-over-year comparisons," stated Joe Hete, president and CEO of ABX. "On the other hand, our business is better positioned for growth as an independent provider of air cargo services than it was a year ago, and our new agreement with All Nippon Airways launches us into new global markets," said Mr Hete. "The outlook for the remainder of the year is encouraging. Our new agreement with All Nippon Airways to place two Boeing 767 aircraft in Asia starting this month is expected to generate a minimum of $22 million in additional revenues per year and will provide us with the momentum to expand into the fast growing Asian cargo markets," Mr Hete added.
DHL has signed a multi-year partnership agreement with the American National Basketball Association (NBA) to become the "official express and logistics provider of the NBA in Asia". As part of the new agreement, DHL will participate in NBA initiatives across various platforms, including television, digital media and events throughout China and Asia. DHL will launch the new partnership with the first Asian NBA Finals Trophy Tour in July. DHL will be tasked with bringing the symbol of the NBA champions - the Larry O'Brien trophy - to the region. The NBA Finals Trophy is awarded annually to the team that wins the NBA Finals. It is 241/2 inches tall, weighs 15 pounds and is made of brass and vermeil in 24 karat gold. DHL will also be a partner of the NBA China Games 2007 featuring the Cleveland Cavaliers, the Orlando Magic and the Chinese Men's National team in Shanghai and Macau from October 17-20.
ATLAS Air Worldwide Holdings, the air cargo services company, and DHL, the package express giant owned by Germany's Deutsche Post, have received key regulatory approval for DHL to acquire a 49 per cent of Atlas' subsidiary, Polar Air Cargo Worldwide Inc, according to an Atlas statement. "We are pleased to have finalised the terms of our strategic partnership with DHL," said Atlas CEO William Flynn. "Our partnership with DHL will reinforce our leadership position as an outsource provider of air cargo services and will greatly enhance the value of our company." The US Department of Transportation had finally issued orders approving the deal, said Atlas. The company said it is still working on securing approval from the Federal Aviation Administration and foreign regulators. Atlas Air and DHL announced last November they had agreed to a 20-year commercial arrangement that will give DHL access to Polar's six Boeing 747-400 Freighters and other benefits. Atlas Air estimated the deal would bring in up to US$3.5 billion in revenue. DHL will also get a 25 per cent voting interest in Polar in exchange for $150 million. Under the terms of the 20-year deal, DHL will have access to lift capacity through Polar's current fleet of six Boeing 747-400 Freighters, plus access to additional available ACMI aircraft from Atlas Air.
ATLAS Air Worldwide Holdings, the air cargo services company, and DHL, the package express giant owned by Germany's Deutsche Post, have received key regulatory approval for DHL to acquire a 49 per cent of Atlas' subsidiary, Polar Air Cargo Worldwide Inc, according to an Atlas statement. "We are pleased to have finalised the terms of our strategic partnership with DHL," said Atlas CEO William Flynn. "Our partnership with DHL will reinforce our leadership position as an outsource provider of air cargo services and will greatly enhance the value of our company." The US Department of Transportation had finally issued orders approving the deal, said Atlas. The company said it is still working on securing approval from the Federal Aviation Administration and foreign regulators. Atlas Air and DHL announced last November they had agreed to a 20-year commercial arrangement that will give DHL access to Polar's six Boeing 747-400 Freighters and other benefits. Atlas Air estimated the deal would bring in up to US$3.5 billion in revenue. DHL will also get a 25 per cent voting interest in Polar in exchange for $150 million. Under the terms of the 20-year deal, DHL will have access to lift capacity through Polar's current fleet of six Boeing 747-400 Freighters, plus access to additional available ACMI aircraft from Atlas Air.
FEDEX Trade Networks, a subsidiary of FedEx Corp., has revamped its WorldTariffSM web site. Located at www.worldtariff.com, the site provides customers with duty and tax information for 123 countries. A WorldTariff editorial team collects data from the world's customs authorities, then simplifies, standardises and translates it into English. The redesigned WorldTariff web site includes more online duty and tax content than previously offered, on-demand access, and simplified pricing, a company statement said. In addition to annual subscription offerings, WorldTariff now enters the on-demand trade facilitation content market by providing access to duty and tax information without an annual commitment or minimum purchase requirement. An online query provides customers with duty and tax information for an entire four-digit heading pertaining to the destination country of their choice including: harmonised system (HS) codes, most favoured nation (MFN) applied duty rates, value added tax (VAT), and excise tax and miscellaneous taxes assessed at import. "WorldTariff strives to be the preferred duty and tax provider for both large and small businesses regardless of carrier or customs broker preference. Current WorldTariff clients include trade promotion agencies, international law and consulting firms, universities, third party logistics companies, customs brokers, freight forwarders and software companies," said Ed Clark, president and CEO of FedEx Trade Networks.
May 6, opening the company's scheduled freighter operations, reported the Gulf News. An agreement has been signed by Khalifa Al Mazrouei, chairman and managing director of Abu Dhabi Airports Company (ADAC), the operator of Al Ain International Airport, and Abdulla Al Daboos, director general of Emirates Post and chairman of Empost, the UAE national Courier Company. "We are delighted Empost has chosen Al Ain International Airport as the main hub for their international cargo business," said Mr Al Mazrouei. "This operation will take advantage of Al Ain Airport's strategic location with easy road access to the entire UAE and international air and sea connections." Empost scheduled freighter operations debut flight is part of a long-term plan that includes a fleet expansion to 50 aircraft by 2012 to be implemented in four phases that will eventually network major cities on the Indian subcontinent, Middle East and Europe.
JAPAN's All Nippon Airways (ANA) says it will outsource some air cargo flights to US freight airline company ABX Air to help it expand its cargo business, Reuters reported. ANA said the deal would mark the first time a Japanese airline has outsourced cargo flights to a foreign firm. In a statement, ANA said ABX Air would operate 22 round-trip flights starting on May 15. Most of the flights will be between Kansai International Airport in Osaka and a handful of major cities including Beijing,
THE US Government Accountability Office (GAO) has reported that the Transportation Security Administration (TSA) is falling short of its duty to ensure the safety of air cargo entering the United States. "Ignoring a mandate from Congress and recommendations from the GAO on this critical security issue borders on the criminal," said the chairman of the House Committee on Homeland Security, Bennie Thompson, a Mississippi Democratic congressman. The GAO report said the TSA had ignored Congress by failing to develop technology, to better identify, to track and to screen air cargo on all passenger and cargo aircraft. "TSA has yet to comply with this mandate. TSA has identified the primary threats but has failed to assess inbound air-cargo vulnerabilities," said the GAO. Currently, TSA's screening system addresses domestic air cargo, leaving out air cargo entering the US, exempting some inbound cargo on passenger planes from inspection. The GAO said it wanted the implementation of a systematic process to improve interagency communication to be used to strengthen the TSA's efforts in securing inbound cargo. "In addition, TSA must analyse air cargo security practices used by industry stakeholders and foreign governments to determine their applicability to the United States," the GAO said. "This GAO report reiterates the need for the 100 per cent inspection of all cargo travelling on passenger planes," added committee member Christopher Shays, a Connecticut Republican congressman. "I think we owe it to all families who have lost loved ones in acts of terrorism to make our airlines as safe as we can."
FEDEX Express says it has widened the service coverage of its International Priority Freight Service to include an additional 27 countries in the Asia Pacific region. This brings the number of countries in the Asia Pacific with this type of express freight coverage to over 90 countries. FedEx International Priority Freight offers customers a time-definite, premium airfreight service for international palletised shipments, individual packages weighing more than 150 lbs (68kgs), and shipments that exceed the normal size restrictions. The service provides customers with delivery options to combine their pickup, line-haul and delivery transportation needs. "With international trade volume growing at more than six per cent per year over the past decade, the expansion of fast and reliable airfreight services is essential to businesses in Asia," said David Cunningham, president of FedEx Asia Pacific. "Air express services, including FedEx Express Freight, will become more crucial for businesses to streamline their supply chains while marketing finished products faster than ever." Customs clearance is included in the transport rate and shipments are backed by a FedEx money-back guarantee. This priority service is intended to provide customers with greater efficiency in supply chain management and transparency in the movement of goods. FedEx Express provides delivery to every US address and to more than 220 countries and territories. Parent company, FedEx Corp., has annual revenues of US$35 billion.
AIR cargo facilities will shortly be expanded at Alaska's Anchorage airport at a cost of US$55 million. The project calls for the construction of a service ramp with spaces for seven planes, plus a 29,000-square foot building to house de-icing rigs, loading and hauling gear, spare parts and other equipment used to service the steady flow of air freighters passing through, a report by the UK Aircargo News said. The project is being undertaken by the Anchorage Global Logistics Airpark Development Company, which has had the work planned for six years. The company's president Lee Nunn said the proposed airport works were affected by a series of planning permit delays arising from regulatory and legal problems on environment impact questions. The Anchorage plus is that it is nine air hours from 95 per cent of the industrialised world, and its airfreight operations are already busy because its biggest customers are FedEx and NWA Cargo, which maintain sizeable bases there.
READERS of US-based Air Cargo World magazine have selected Frankfurt Airport (FRA) as the best major air cargo gateway in Europe having presented its 2007 Air Cargo Award of Excellence. FRA regards the recognition as carrying "significant weight" because it comes from cargo experts, said an airport statement. The publisher said that the annual Air Cargo Excellence (ACE) survey "provides quantitative feedback from the airport's cargo customer base of airlines and airfreight forwarders who ship to or through FRA". Frankfurt won the award "by achieving superior ratings" from customers in handling services, price/performance, facilities and infrastructure for cargo handling, as well as operations of regulatory agencies, said FRA. In the first quarter, FRA handled 491,518 metric tons of airfreight, a year-on-year increase of 2.3 per cent. FRA also posted a 0.3 per cent gain in March tonnage, handling 184,937 tons and setting a new monthly record.
UPS will become the first foreign airline to operate a hub in China, Chinese and U.S. aviation officials have confirmed. UPS, meeting criteria outline in the 2004 U.S. China bilateral agreement, last week contracted with Shanghai Airport Authority to build a facility at Shanghai Pudong Airport. The UPS hub facility, to open next year, will be part of the new West Cargo Terminal Area now under construction. The deal removes frequency restrictions for UPS, essentially giving the carrier open skies rights.
Rolls-Royce has won the engine contract for the first, and so far only, firm order for Airbus A330-200 frighters. Deliveries are set for 2010.
On April 13 Vanguard replaced the 500 Index fund and the Extended Markets Index fund, both Investor class, with their new Signal class funds (same names). The new fund symbols are VIFSX (1340) and VEMSX (1113). See the Performance details page for information.
HONG KONG ranks second to Memphis in the world ranking of cargo airports by size, according to a recent study by Capgemini Consulting of Australia. The top five positions, which remained the same from 2005-2006, were retained by Memphis (home to FedEx and Northwest Airlines), Hong Kong, Tokyo, Anchorage, Alaska (a major hub for FedEx, UPS and Northwest Airlines) and Seoul, South Korea. The Capgemini survey shows the growth percentage of air cargo handled and each of the airports' home-base carriers and the outside carriers using the airport as their hubs.
DRAGONAIR Cargo has launched a new web site at www.dragonaircargo.com.hk. An airline statement said the site features a wide range of information, including shipment details, Dragonair and Cathay Pacific flight status checking, descriptions of aircraft and unit load devices, as well as details of LIFT cargo products and trucking services, providing a comprehensive set of online tools for customers. "The launch of the new site is an important step in the development of our cargo business," said cargo general manager Alex Shum. "It offers comprehensive information on our services and enhances communication with our customers." Meanwhile, Dragonair Cargo has also launched a range of seven LIFT cargo products, which are tailored to meet the freight-transport requirements of customers, the statement added. The seven LIFT products are: priority handling with a money-back guarantee; airport-to-airport small parcel service, with fast customs clearance; high security for high-value shipments; professional, reliable and secure handling of dangerous goods; extra-special care for live animals and tailor-made solutions for unusual shipments.
ECS, one of the world's largest air cargo sales agent networks, has taken a controlling stake in Togo-based Africa West Cargo, according to the UK periodical International Freight Weekly. The report said the ECS decision is the latest in a series of moves to take greater control of its destiny, rather than relying on the fluctuating bellyhold capacity of the airlines it represents and diminishing airfreight rates from Europe. Adrien Thominet, ECS's vice president for sales and marketing, said the move was driven by two factors: a reduction in cargo capacity at one of ECS's key customers, Brussels Airlines (formerly SN Brussels), and by Africa West wanting strong financial backing to support expansion. Mr Thominet said increased passenger load factors for Brussels Airlines had meant the carrier had insufficient cargo capacity to meet customer demand for Central and West Africa. Africa West would supplement Brussels Airlines' capacity from Europe through thrice-weekly widebody freighters between Ostend and its Lome hub, flown by MK Airlines. Four AN-12 freighters on wet-lease to Africa West distribute from there, to key import destinations such as Pointe Noire, Port Harcourt, Malabo, Abidjan and Libreville, the report added. Mr Thominet said ECS was looking at the possibility of owning other cargo airlines with flexible fleets to support other carriers it represented on a global basis. One possibility was in the Caribbean, where some time ago ECS set up a partnership with a Colombian cargo airline to provide onward distribution from the Dominican Republic, on behalf of Corsair.
SINGAPORE Airlines Cargo, deploying B747-400 aircraft, has started a weekly service to Nairobi, Kenya from Johannesburg which flies on to Brussels carrying fish and flowers. Nairobi has become the fourth city in Africa and the 75th destination in the Singapore Airlines network, said a company statement. The new service will boost the growing freight business links between Kenya and Singapore. Kenya is a growing trading partner with countries in the southeast Asia. Bilateral trade has been steadily rising with information technology and telecommunications equipment, pharmaceuticals and electronics being the bulk of imports while flowers and agricultural produce make up most exports from east Africa. "We look forward to serving the people of Kenya by providing trade links not only between our two countries but between southeast Asia, southwest Pacific and other key markets," said Mr Zainul Aljunied, Singapore Airlines vice president for the Middle East, north Africa, Pakistan and Turkey. Weekly flights until October 21 depart from Singapore at 1520 hrs arriving in Johannesburg at 1940 hrs, the