United

Production freighter ‘firm orders’ exceed Boeing’s wildest dreams

Magazine Stories January Issue 2009
Thursday, 28 January 2016
BOEING cargo chief, Jim Edgar, is in a buoyant mood these days.

And it’s little wonder with orders for large freighter aircraft at an all-time high.

Edgar, Boeing’s regional director, marketing, Commercial Airplanes, said 2007 was the third consecutive year that sales records had been achieved for production freighters.

“Orders for the new B747-8F are more than our wildest dreams,” he said. “It’s a robust order book — and we are ecstatic about the orders, which are all signed deals — not options. I didn’t think that in my 23 years at Boeing I would see such a magnitude of orders for production freighters.”

The American plane maker has started assembling the first 747-8F, which will be delivered to Cargolux in the fourth quarter of next year.

At press time Boeing said it has 78 firm orders for the 747-8F, which it claims has the lowest tonne-kilometre cost of any freighter and offers the highest revenue potential for air cargo operations.

Ready to be delivered to Air France in the next few weeks is the first 777, which also has been a top seller for Boeing with firm orders totalling 73 from 11 customers worldwide. The 777F is claimed to be the largest and longest range twin-engine freighter with the lowest trip cost of any large freighter.

Together the 747-8F and 777F offer substantial commonality benefits and complementary operating capabilities for direct transfer and efficient mixed fleeting. Both accommodate three-metre high main deck cargo for extensive, easy direct transfer capability between models - and both have similar speed and range capabilities for complementary operations and seamless aircraft substitutions.

Revenue payload on the 747-8F is 134 tonnes compared to 103 tonnes on the 777F — which will replace some of the older 747Fs of which there are currently 320 of all types in operation worldwide - that’s 16 per cent of the global freighter fleet.

“The migration towards large wide-bodied freighters with more capacity and range will continue to grow at an accelerated pace, as will medium wide-bodies and standard-bodies for express carrier operations,” said Edgar. “In 20 years, the large (more than 80 tonnes of payload) and medium wide-body (40-80 tonnes) will comprise 65 per cent of the world’s freighter fleet.”

By 2027, Boeing predicts there will be 3892 freighters — almost double the fleet of 1948 in operation last year — made up of 35 per cent large freighters, 30 per cent medium wide-bodies and 35 per cent standard-bodies (less than 45 tonnes). 

“For the 747-8 and 777 production freighters we have a backlog of some 150 units within the next five years. It’s unprecedented. I remember when we had a backlog in the teens,” said Edgar, revealing that 60 per cent of the current large freighter orders are bound for Asia-Pacific customers, mainly in China.

Edgar also pointed to a strong demand for the 747-400 Boeing Converted Freighter (BCF) - a cheaper alternative to the production freighter. Unlike the 747F, the BCF does not have a nose door that provides for high-value cargo. At present, Boeing has 51 firm orders from 10 customers for the 747-400BCF.

SATS is still ‘cautiously optimistic’that customers will deliver growth

Magazine Stories January Issue 2009
Thursday, 28 January 2016
IT’s been a good year for Singapore Airport Terminal Services - known as SATS - with year-on-year growth in cargo and mail processed as well as unit services and flights handled.  The company has also continued to expand its operations, most recently through the purchase of Menzies Aviation (Hong Kong).

August’s 134,570 tonne throughput of cargo and mail was up 2.6 per cent on August 2007, but only marginally more than July’s 134,250 tonnes (which was an increase of 3.2 per cent over July last year).

For the first quarter of the financial year (April to June 2008), SATS boosted cargo and mail processing 4.8 per cent on the same period in 2007, achieving 396,270 tonnes throughput.

Operating revenue was up by 4.9 per cent in the first quarter, but operating profit dropped 16.4 per cent because of a sharp increase in expenditure, largely due to higher staff costs for Terminal 3 at Changi.

“The slowing world economy will continue to dampen global air traffic growth,” said a SATS outlook document presented with the first quarter results.  “At the Singapore hub, we are cautiously optimistic that there will be modest revenue growth as our key customers continue to take delivery of new aircraft.”

SATS noted that its “share of associates’ profits this year will be lower due to lower passenger loads and more flight cancellations in India and China.  We are reviewing the emerging situation to adjust capacity where possible.
“However, we maintain our positive long-term outlook on these economies.”

SATS paid about HK$18 million for 100 per cent of Menzies Aviation (Hong Kong), which is one of the four licensed ramp handlers at Hong Kong International.

Key customers include Federal Express, Cebu Pacific, Air Canada, Orient Thai and Asiana Airlines.

SATS noted that the purchase complemented its existing cargo operations at Hong Kong, undertaken through its joint venture company, Asia Airfreight Terminal.

Earlier, SATS announced that it had come to an arrangement with three minority shareholders in its Country Foods subsidiary to buy their stake in the company, making it a wholly-owned subsidiary.  Country Foods is a major trade supplier in Singapore and also has a majority holding in a similar company in Macau.

On the web:  www.sats.com.sg

Second runway to boost cargo, passenger numbers at ADI

Magazine Stories January Issue 2009
Thursday, 28 January 2016
THE OPENING of Abu Dhabi International Airport’s second runway mid-October will help the emirate’s plan to establish this and Al Ain International as increasingly significant cargo and passenger ports, rather than allowing Dubai’s facilities to gobble up most of the potential for growth.

Abu Dhabi Customs is reporting a sharp increase in external trade this year, with July 2008 seeing a record increase of 36.6 per cent over July 2007.  This included a major boost in imports and a small rise in non-oil exports, although re-exports were down.

Of the imports, some 11 per cent were brought in as air freight, with 57 per cent by sea and 32 per cent across land borders.

July is usually a quieter month in Abu Dhabi, because of the mid-summer heat.

The new runway at Abu Dhabi International is located 2km north of the established runway.

Khalifa Al Mazrouei, chairman of the airport company said it had “achieved significant progress in the journey to transform Abu Dhabi International into a world class gateway airport. 

“The new runway will form a key part of our plan to increase total capacity at the airport that will culminate with the construction and completion of the midfield terminal facility.”

Earlier in the year, chief executive Rudy Vercelli said that “we confidently expect passenger and cargo figures to continue their growth as demand for travel to or through Abu Dhabi continues its upward climb.

“Our challenge is to respond to this growth by continually investing in and expanding Abu Dhabi International Airport to meet the demand.”

Abu Dhabi International has also continued to attract more international airlines this year, one of them being the Italian freight carrier Cargoitalia.  It launched two flights a week between its Milan base and Abu Dhabi.

Abu Dhabi International has just released its third quarter (July to September 2008) cargo statistics, indicating a 13.6 per cent increase in cargo traffic.  September was quieter, recording a 7.5 per cent increase over 2007.  Passenger traffic grew by 24.1 per cent in the quarter and aircraft movements by 13.0 per cent.

Swissport looks to NASS buy to boost cargo security solutions

Magazine Stories January Issue 2009
Thursday, 28 January 2016
THE RECENT purchase of US-based New Age Security Solutions (NASS) has given Swissport International further scope for offering air cargo security solutions to clients around the world.

Swissport, which is owned by the Spanish-based Ferrovial group, also strengthened its cargo operations by appointing industry veteran John Batten as its executive vice president responsible for cargo.

NASS has developed a variety of airport security concepts, including the BPR (behaviour pattern recognition) program which has earned it an international reputation.  Its clients include major airports in the United States and Britain.

Swissport executive Erich Bodenmann said the company had been eager to expand its knowledge and expertise in the rapidly-growing cargo security market, as well as other aspects of airline and aviation security.  “NASS is the partner to provide them.”

In turn, NASS is pleased to have the economic power of Swissport underwriting its own expansion plans.  “With its worldwide network of more than 180 stations and more than 600 airline customers, Swissport offers tremendous potential for substantially increasing the scope of our activities,” said Rafi Ron, NASS’s chief executive.

Batten, Swissport’s new cargo boss, was most recently senior vice president cargo for the fast-expanding Qatar Airways group, based in Doha.  Previously he had spent some 25 years with TNT Express Worldwide, including senior positions both at company headquarters and in various parts of its far-flung network.

Top NZ duo link to fight threat posed to environment by exotic fish imports

Magazine Stories January Issue 2009
Thursday, 28 January 2016
EXOTIC ornamental fish are a vast, growing and extremely complex international trade, in which air cargo plays a key role.  Unit costs can be extraordinarily high for sought-after species in optimum condition while the volume of even more commonplace species is substantial. 

But some of these little creatures, cute as they might appear, have the potential to harm the eco-systems of their new homeland if released into the wild after importation.

With this in mind, New Zealand’s Lincoln University, a specialist agricultural facility with a high global reputation, has joined with MAF Biosecurity New Zealand to employ a post-graduate student interested in undertaking a study into the development of DNA bar-coding for exotic ornamentals.

This PhD project will seek to identity species and variants that pose a biosecurity risk to New Zealand.  The study will be largely funded by MAF Biosecurity.

Dr Colin Johnston, a senior MAF scientist who is a key adviser to the study, said that high-risk ornamentals fell into two general categories: Those known to carry diseases of concern and those likely to establish well in New Zealand, thus posing an environmental pest risk.

“Carp in Australia is a good example of something that’s got out and taken over waterways and changed the environment,” said Johnston.  “This PhD study will provide another brick in the wall in New Zealand’s biosecurity system.

“It’s adding to our knowledge, it’s giving us more molecular tools.  Part of the problem is identification of these fish species, especially when they’re very small.”

Johnston explained that with the molecular tools “we can take a DNA sample from a fish due to be imported, and be able to tell if it’s one that we’re really worried about.

“Then we can stop the shipment or we can know we need to screen the fish for certain diseases.  At the moment, we rely very much on visual identification.”

Earlier this year, Kiwi biosecurity officials intercepted six live Siamese fighting fish which had been declared as ‘aroma’.  They were packed in small plastic bags and in tinfoil inside a polystyrene container.
No action was taken against the importer when it was discovered she had put the order on hold pending completion of biosecurity risk inquiries.

But MAF Biosecurity pointed to the risk of such ornamental exotics entering the country without rigorous checks, whether as air cargo consignments or by air-freighted mail carrying incorrect documentation.

US government digs deep to solve delay problems at JFK

Magazine Stories January Issue 2009
Thursday, 28 January 2016
THE US government is committing almost US $90 million over the next eight years to expand capacity at John F Kennedy International Airport and has announced more details on the controversial slots auction process at JFK, LaGuardia and Newark airports.

“The best way to cut record airline delays nationwide is to expand the limited capacity at New York’s airport," said US secretary of Transportation Mary Peters. “But building new taxiways or adding new runways takes time which is why we’re also putting in place measures to cut delays and keep service vibrant over the short term.”

The US Department of Transportation will spend US$89 million between 2009 and 2016 to  construct two new taxiways, extending or improve six others and create new high-speed exit taxiways.

The taxiway work will make it easier for aircraft to manoeuvre between gates and the airport’s runways, cutting travel time and limiting delays;  new high-speed exit taxiways will reduce inbound delays.

Construction work is expected to begin in 2009 and be completed by 2014. Peters added that the Department also was working with local airport officials to move forward on a range of other capacity projects including to keep the New York aviation market open to new services that would promote competition Peters also confirmed final rules which have been widely condemned by affected airlines and airline associations, carriers  operating at JFK, Newark and LaGuardia will receive a 10-year ownership of the vast majority of FAA slots they currently operate.

However, the new rules call for a gradual auctioning over the next five years of up to 10 percent of the landing and take off slots these airlines currently operate free of charge today. She added that the rules also would lower the hourly operating cap at LaGuardia airport from 75 slots per hour to 71 slots per hour by “retiring” an additional five percent of the slots currently being used, cutting delays by an estimated 40 per cent.

Under the rule for La Guardia, existing airlines would keep 988 of the slots they currently operate. The remaining 113 slots would be made available over the next five years by auction to airlines interested in starting new service or expanding current operations at the airport.

In addition, under the rule for JFK and Newark, existing airlines would keep 1,035 of the slots they currently operate at JFK Airport and 1,154 of the 1,245 slots they currently operate at Newark Airport. The remaining 89 slots at JFK and 91 slots at Newark would be made available over a five-year period for airlines wishing to expand their current operations or start new services at either of the airports.

Peters said that as a result of the auctions, all airlines would have an opportunity to enter or expand current operations in the New York market.

Cargo has dropped for fifth straight month, with worse to come — IATA

Magazine Stories January Issue 2009
Thursday, 28 January 2016

THE INTERNATIONAL Air Transport Association (IATA) says international air traffic for October shows a second consecutive month of global decline, with airfreight alone down 7.9 per cent for the month.

International passenger traffic declined by 1.3 per cent compared to the same month in 2007 — a smaller decline than the 2.9 per cent drop experienced in September. The October load factor was 75 per cent, approximately 2 per cent below the 2007 level. International air freight traffic contracted for a fifth consecutive month of increasingly severe drops.

“The gloom continues and the situation remains critical. While the drop in oil prices is welcome relief, recession is now the biggest threat to airline profitability. The slight slowing in the decline of passenger traffic is likely only temporary. The deepening slump in cargo markets is a clear indication that the worst is yet to come,” said Giovanni Bisignani, IATA’s director general and ceo.

• The 7.9 per cent decline in air freight during October dragged year-to-date air freight volume down 0.8 per cent below the same period in 2007. Forecasted declines in key air cargo sectors such as semi-conductors indicate that the weakness is expected to continue.

• Asia-Pacific carriers, which account for 44.7 per cent of the international cargo market, saw international freight traffic decline by 11.0 per cent, reflecting the sharp drop in the region’s exports.

• North American and European carriers saw less precipitous declines of 7.6 per cent and 5.4 per cent respectively.

• In sharp contrast to passenger performance, African carriers saw a 3.0 per cent improvement in cargo during October. This reflects trade growth within Africa.

• Latin American carriers saw the largest decline (11.4 per cent).

• Middle Eastern carriers were the only others to report growth (1.0 per cent) in October.

In Passenger terms, Asia-Pacific carriers, which represent 31 per cent of global international passenger traffic, saw passenger traffic decline by 6.1 per cent (slightly improved from the 6.8 per cent decline in September).

A capacity reduction of 2.3 per cent could not keep pace with the drop in demand, taking load factors for the region’s carriers to 72.2 per cent. Year-to-date growth for Asia-Pacific carriers fell to 0.3 per cent, the weakest growth outside of Africa.

• North American carriers saw international traffic decline by 0.8 per cent in October compared to the previous year, only slightly changed from the 0.9 per cent drop in September.

European carriers saw traffic rebound slightly into positive territory with 1.8 per cent growth in October. While trans-Atlantic traffic growth was flat for the month, with both the European and US economies in recession, further declines in international traffic for both regions’ carriers are expected.

• Latin American and Middle Eastern airlines recorded 4.5 per cent and 3.5 per cent growth respectively. While better than the September traffic figures, both regions remain well below the double-digit growth rates experienced over the first half of the year. Economic forecasts for both regions see considerable slowing of GDP growth over the next 12 months to the 2-4 per cent range. Airlines in both regions can expect a continued slowing of growth.

• African carriers saw the largest decline with international traffic dropping by 12.9 per cent in October. It is the only region where traffic deteriorated relative to September. This continues the year-long trend of Africa being the weakest market for air traffic with falls in both intercontinental and regional travel.

“As the global economic downturn re-shapes the world’s financial industry, policy makers must understand that change is needed in air transport. Unlike the finance industry, airlines are not asking for handouts. Commercial freedom, efficiency and a fair treatment in taxes are needed,” said Bisignani.

“We need commercial freedoms to run this as a normal business. IATA’s Agenda for Freedom is building momentum among governments for access to markets and equity capital and the ability to merge or consolidate where it makes business sense. We need efficiency everywhere.

“At the top of the list is a Single European Sky by 2012 that would save 16 million tonnes of CO2 and over EUR5 billion in operating costs. And we need common sense in taxation. It was good news that the Belgian government has backed away from its plans to introduce a new departure tax. But the UK’s decision to hike its Air Passenger Duty is a major step in the wrong direction. Air transport is a catalyst for economic growth, But plugging budget gaps with gratuitous travel taxes is bad policy that is not sustainable. This must change,” said Bisignani.

Cathay to park freighters, cut cargo schedules as it battles the downturn

Magazine Stories January Issue 2009
Thursday, 28 January 2016
CATHAY Pacific Airways has announced a series of new measures including parking two freighters for a year and cutting freighter schedules to Australia, USA and Europe as it battles the economic downturn.

The airline still will receive four more new Boeing 747-400 Extended Range Freighters in 2009, though the delivery of its new Boeing 747-8Fs will now not begin until 2010.

Cathay already announced that it will seek an okay from Hong Kong’s Airport Authority to defer construction of the planned new Cathay Pacific Cargo Terminal at the airport, but stressed it still is committed to the building and to Hong Kong.

Other new initiatives just announced include cutting back on planned passenger capacity growth to less than one per cent (down from an earlier 6-7 per cent estimate) and offering aircrew including pilots the option of voluntary unpaid leave for between two and 52 weeks in 2009, effective January.

Services on some routes will be adjusted downward, though the airline plans to keep its network integrity intact and not cut any destinations.

The new capacity figure takes into account the airline’s previously announced decision to remove five Boeing 777-200 aircraft from its fleet and also covers delays in the deliveries of new aircraft as a result of the recent strike at the Boeing factory in Seattle.

Cathay Pacific chief executive Tony Tyler said: “This is a very difficult time for our airline and for the aviation industry as a whole, and we cannot see light at the end of the tunnel at this point.

“In view of this, and given the impact the current crisis is having on our core business, we have taken a number of measures to help ensure the financial health and long-term well-being of our airline.

“This is our number-one priority at this time, and we will continue to do all we can to keep our network intact and our team together.”

Tyler said the adjustments to the airline’s operating plan for next year were “necessary” given the expected global drop in demand. “However, the plan may well have to be revised again depending on how things unfold. Nothing can be set in stone at the moment. Visibility is low and it’s hard to predict developments with any real certainty. Flexibility will be the key word in the months ahead.”

Ex-Australia freight rates go global as downturn hits cargo load factors

Magazine Stories January Issue 2009
Thursday, 28 January 2016

THE GLOBAL economic downturn has taken a turn for the worse with the confirmation that the US is officially in recession -- but the negative is turning into a positive for Australian exporters.

The slow-down has freed up capacity at overseas hubs for cargo en route to Europe, the Middle East and intra Asia, with ex-Australia freight rates accepted for the through traffic, something that under normal circumstances is practically impossible, particularly for guaranteed space to the Middle east and Europe.

The Australian dollar, which has fallen to around US$0.64 cents, also is assisting air exporters.

Greg Toms, general manager of World Aviation Systems Cargo (WAS), Sydney, said it was hard to determine if the impetus in the market was because of the traditional seasonal upswing at this time of the year or was a genuine improvement in the market in general.

"October and November were unusually flat, but we are now seeing signs of increased activity," he said.

Toms said overseas markets had been sourcing produce from other markets and it takes a while for those contracts to be turned around, but he said WAS now was busy and the signs were good.

"The global economic situation still has to run its course and Australia will be affected to some degree," said Toms, "but all things considered we have renewed optimism and are taking the opportunities as they come along."

Toms was supported by Wexco chief David Williams who said business has been good since late October and had kicked again in recent weeks. 

"Consumer demand has fallen in the US and UK and this has freed up cargo space to those markets," said Williams.

"We have been able to get as much export space as required through to the US and UK and it's made a tremendous difference. Normally we have to fight for capacity, especially at this time of the year, but the market is currently very favourable for Australian exporters, particularly the perishable guys looking for bargain rates."

Williams is not sure how long the good times are going to last. 

"There has to be some impact on Australia from the global situation," he said. "It's tough for imports at this time. Australian consumer demand has softened and the relatively high US dollar is hitting imports."

Donna Mayne, from Brisbane-based gsa Cargo Services, said she usually was "frantic" at this time of the year but she said she was doing OK and that business had definitely improved in the last couple of weeks.

"Business is very good to New Guinea and we have been able to get some useful shipments off to the Middle East via SriLankan Airlines. Under normal conditions SriLankan would never be able to  accommodate us to the Middle East but at this time there are no restrictions and they welcomed the business," she said.

HACTL
Cathay Cargo
United

Production freighter ‘firm orders’ exceed Boeing’s wildest dreams

Magazine Stories January Issue 2009
Thursday, 28 January 2016
BOEING cargo chief, Jim Edgar, is in a buoyant mood these days.

And it’s little wonder with orders for large freighter aircraft at an all-time high.

Edgar, Boeing’s regional director, marketing, Commercial Airplanes, said 2007 was the third consecutive year that sales records had been achieved for production freighters.

“Orders for the new B747-8F are more than our wildest dreams,” he said. “It’s a robust order book — and we are ecstatic about the orders, which are all signed deals — not options. I didn’t think that in my 23 years at Boeing I would see such a magnitude of orders for production freighters.”

The American plane maker has started assembling the first 747-8F, which will be delivered to Cargolux in the fourth quarter of next year.

At press time Boeing said it has 78 firm orders for the 747-8F, which it claims has the lowest tonne-kilometre cost of any freighter and offers the highest revenue potential for air cargo operations.

Ready to be delivered to Air France in the next few weeks is the first 777, which also has been a top seller for Boeing with firm orders totalling 73 from 11 customers worldwide. The 777F is claimed to be the largest and longest range twin-engine freighter with the lowest trip cost of any large freighter.

Together the 747-8F and 777F offer substantial commonality benefits and complementary operating capabilities for direct transfer and efficient mixed fleeting. Both accommodate three-metre high main deck cargo for extensive, easy direct transfer capability between models - and both have similar speed and range capabilities for complementary operations and seamless aircraft substitutions.

Revenue payload on the 747-8F is 134 tonnes compared to 103 tonnes on the 777F — which will replace some of the older 747Fs of which there are currently 320 of all types in operation worldwide - that’s 16 per cent of the global freighter fleet.

“The migration towards large wide-bodied freighters with more capacity and range will continue to grow at an accelerated pace, as will medium wide-bodies and standard-bodies for express carrier operations,” said Edgar. “In 20 years, the large (more than 80 tonnes of payload) and medium wide-body (40-80 tonnes) will comprise 65 per cent of the world’s freighter fleet.”

By 2027, Boeing predicts there will be 3892 freighters — almost double the fleet of 1948 in operation last year — made up of 35 per cent large freighters, 30 per cent medium wide-bodies and 35 per cent standard-bodies (less than 45 tonnes). 

“For the 747-8 and 777 production freighters we have a backlog of some 150 units within the next five years. It’s unprecedented. I remember when we had a backlog in the teens,” said Edgar, revealing that 60 per cent of the current large freighter orders are bound for Asia-Pacific customers, mainly in China.

Edgar also pointed to a strong demand for the 747-400 Boeing Converted Freighter (BCF) - a cheaper alternative to the production freighter. Unlike the 747F, the BCF does not have a nose door that provides for high-value cargo. At present, Boeing has 51 firm orders from 10 customers for the 747-400BCF.

SATS is still ‘cautiously optimistic’that customers will deliver growth

Magazine Stories January Issue 2009
Thursday, 28 January 2016
IT’s been a good year for Singapore Airport Terminal Services - known as SATS - with year-on-year growth in cargo and mail processed as well as unit services and flights handled.  The company has also continued to expand its operations, most recently through the purchase of Menzies Aviation (Hong Kong).

August’s 134,570 tonne throughput of cargo and mail was up 2.6 per cent on August 2007, but only marginally more than July’s 134,250 tonnes (which was an increase of 3.2 per cent over July last year).

For the first quarter of the financial year (April to June 2008), SATS boosted cargo and mail processing 4.8 per cent on the same period in 2007, achieving 396,270 tonnes throughput.

Operating revenue was up by 4.9 per cent in the first quarter, but operating profit dropped 16.4 per cent because of a sharp increase in expenditure, largely due to higher staff costs for Terminal 3 at Changi.

“The slowing world economy will continue to dampen global air traffic growth,” said a SATS outlook document presented with the first quarter results.  “At the Singapore hub, we are cautiously optimistic that there will be modest revenue growth as our key customers continue to take delivery of new aircraft.”

SATS noted that its “share of associates’ profits this year will be lower due to lower passenger loads and more flight cancellations in India and China.  We are reviewing the emerging situation to adjust capacity where possible.
“However, we maintain our positive long-term outlook on these economies.”

SATS paid about HK$18 million for 100 per cent of Menzies Aviation (Hong Kong), which is one of the four licensed ramp handlers at Hong Kong International.

Key customers include Federal Express, Cebu Pacific, Air Canada, Orient Thai and Asiana Airlines.

SATS noted that the purchase complemented its existing cargo operations at Hong Kong, undertaken through its joint venture company, Asia Airfreight Terminal.

Earlier, SATS announced that it had come to an arrangement with three minority shareholders in its Country Foods subsidiary to buy their stake in the company, making it a wholly-owned subsidiary.  Country Foods is a major trade supplier in Singapore and also has a majority holding in a similar company in Macau.

On the web:  www.sats.com.sg

Second runway to boost cargo, passenger numbers at ADI

Magazine Stories January Issue 2009
Thursday, 28 January 2016
THE OPENING of Abu Dhabi International Airport’s second runway mid-October will help the emirate’s plan to establish this and Al Ain International as increasingly significant cargo and passenger ports, rather than allowing Dubai’s facilities to gobble up most of the potential for growth.

Abu Dhabi Customs is reporting a sharp increase in external trade this year, with July 2008 seeing a record increase of 36.6 per cent over July 2007.  This included a major boost in imports and a small rise in non-oil exports, although re-exports were down.

Of the imports, some 11 per cent were brought in as air freight, with 57 per cent by sea and 32 per cent across land borders.

July is usually a quieter month in Abu Dhabi, because of the mid-summer heat.

The new runway at Abu Dhabi International is located 2km north of the established runway.

Khalifa Al Mazrouei, chairman of the airport company said it had “achieved significant progress in the journey to transform Abu Dhabi International into a world class gateway airport. 

“The new runway will form a key part of our plan to increase total capacity at the airport that will culminate with the construction and completion of the midfield terminal facility.”

Earlier in the year, chief executive Rudy Vercelli said that “we confidently expect passenger and cargo figures to continue their growth as demand for travel to or through Abu Dhabi continues its upward climb.

“Our challenge is to respond to this growth by continually investing in and expanding Abu Dhabi International Airport to meet the demand.”

Abu Dhabi International has also continued to attract more international airlines this year, one of them being the Italian freight carrier Cargoitalia.  It launched two flights a week between its Milan base and Abu Dhabi.

Abu Dhabi International has just released its third quarter (July to September 2008) cargo statistics, indicating a 13.6 per cent increase in cargo traffic.  September was quieter, recording a 7.5 per cent increase over 2007.  Passenger traffic grew by 24.1 per cent in the quarter and aircraft movements by 13.0 per cent.

Swissport looks to NASS buy to boost cargo security solutions

Magazine Stories January Issue 2009
Thursday, 28 January 2016
THE RECENT purchase of US-based New Age Security Solutions (NASS) has given Swissport International further scope for offering air cargo security solutions to clients around the world.

Swissport, which is owned by the Spanish-based Ferrovial group, also strengthened its cargo operations by appointing industry veteran John Batten as its executive vice president responsible for cargo.

NASS has developed a variety of airport security concepts, including the BPR (behaviour pattern recognition) program which has earned it an international reputation.  Its clients include major airports in the United States and Britain.

Swissport executive Erich Bodenmann said the company had been eager to expand its knowledge and expertise in the rapidly-growing cargo security market, as well as other aspects of airline and aviation security.  “NASS is the partner to provide them.”

In turn, NASS is pleased to have the economic power of Swissport underwriting its own expansion plans.  “With its worldwide network of more than 180 stations and more than 600 airline customers, Swissport offers tremendous potential for substantially increasing the scope of our activities,” said Rafi Ron, NASS’s chief executive.

Batten, Swissport’s new cargo boss, was most recently senior vice president cargo for the fast-expanding Qatar Airways group, based in Doha.  Previously he had spent some 25 years with TNT Express Worldwide, including senior positions both at company headquarters and in various parts of its far-flung network.

Top NZ duo link to fight threat posed to environment by exotic fish imports

Magazine Stories January Issue 2009
Thursday, 28 January 2016
EXOTIC ornamental fish are a vast, growing and extremely complex international trade, in which air cargo plays a key role.  Unit costs can be extraordinarily high for sought-after species in optimum condition while the volume of even more commonplace species is substantial. 

But some of these little creatures, cute as they might appear, have the potential to harm the eco-systems of their new homeland if released into the wild after importation.

With this in mind, New Zealand’s Lincoln University, a specialist agricultural facility with a high global reputation, has joined with MAF Biosecurity New Zealand to employ a post-graduate student interested in undertaking a study into the development of DNA bar-coding for exotic ornamentals.

This PhD project will seek to identity species and variants that pose a biosecurity risk to New Zealand.  The study will be largely funded by MAF Biosecurity.

Dr Colin Johnston, a senior MAF scientist who is a key adviser to the study, said that high-risk ornamentals fell into two general categories: Those known to carry diseases of concern and those likely to establish well in New Zealand, thus posing an environmental pest risk.

“Carp in Australia is a good example of something that’s got out and taken over waterways and changed the environment,” said Johnston.  “This PhD study will provide another brick in the wall in New Zealand’s biosecurity system.

“It’s adding to our knowledge, it’s giving us more molecular tools.  Part of the problem is identification of these fish species, especially when they’re very small.”

Johnston explained that with the molecular tools “we can take a DNA sample from a fish due to be imported, and be able to tell if it’s one that we’re really worried about.

“Then we can stop the shipment or we can know we need to screen the fish for certain diseases.  At the moment, we rely very much on visual identification.”

Earlier this year, Kiwi biosecurity officials intercepted six live Siamese fighting fish which had been declared as ‘aroma’.  They were packed in small plastic bags and in tinfoil inside a polystyrene container.
No action was taken against the importer when it was discovered she had put the order on hold pending completion of biosecurity risk inquiries.

But MAF Biosecurity pointed to the risk of such ornamental exotics entering the country without rigorous checks, whether as air cargo consignments or by air-freighted mail carrying incorrect documentation.

US government digs deep to solve delay problems at JFK

Magazine Stories January Issue 2009
Thursday, 28 January 2016
THE US government is committing almost US $90 million over the next eight years to expand capacity at John F Kennedy International Airport and has announced more details on the controversial slots auction process at JFK, LaGuardia and Newark airports.

“The best way to cut record airline delays nationwide is to expand the limited capacity at New York’s airport," said US secretary of Transportation Mary Peters. “But building new taxiways or adding new runways takes time which is why we’re also putting in place measures to cut delays and keep service vibrant over the short term.”

The US Department of Transportation will spend US$89 million between 2009 and 2016 to  construct two new taxiways, extending or improve six others and create new high-speed exit taxiways.

The taxiway work will make it easier for aircraft to manoeuvre between gates and the airport’s runways, cutting travel time and limiting delays;  new high-speed exit taxiways will reduce inbound delays.

Construction work is expected to begin in 2009 and be completed by 2014. Peters added that the Department also was working with local airport officials to move forward on a range of other capacity projects including to keep the New York aviation market open to new services that would promote competition Peters also confirmed final rules which have been widely condemned by affected airlines and airline associations, carriers  operating at JFK, Newark and LaGuardia will receive a 10-year ownership of the vast majority of FAA slots they currently operate.

However, the new rules call for a gradual auctioning over the next five years of up to 10 percent of the landing and take off slots these airlines currently operate free of charge today. She added that the rules also would lower the hourly operating cap at LaGuardia airport from 75 slots per hour to 71 slots per hour by “retiring” an additional five percent of the slots currently being used, cutting delays by an estimated 40 per cent.

Under the rule for La Guardia, existing airlines would keep 988 of the slots they currently operate. The remaining 113 slots would be made available over the next five years by auction to airlines interested in starting new service or expanding current operations at the airport.

In addition, under the rule for JFK and Newark, existing airlines would keep 1,035 of the slots they currently operate at JFK Airport and 1,154 of the 1,245 slots they currently operate at Newark Airport. The remaining 89 slots at JFK and 91 slots at Newark would be made available over a five-year period for airlines wishing to expand their current operations or start new services at either of the airports.

Peters said that as a result of the auctions, all airlines would have an opportunity to enter or expand current operations in the New York market.

Cargo has dropped for fifth straight month, with worse to come — IATA

Magazine Stories January Issue 2009
Thursday, 28 January 2016

THE INTERNATIONAL Air Transport Association (IATA) says international air traffic for October shows a second consecutive month of global decline, with airfreight alone down 7.9 per cent for the month.

International passenger traffic declined by 1.3 per cent compared to the same month in 2007 — a smaller decline than the 2.9 per cent drop experienced in September. The October load factor was 75 per cent, approximately 2 per cent below the 2007 level. International air freight traffic contracted for a fifth consecutive month of increasingly severe drops.

“The gloom continues and the situation remains critical. While the drop in oil prices is welcome relief, recession is now the biggest threat to airline profitability. The slight slowing in the decline of passenger traffic is likely only temporary. The deepening slump in cargo markets is a clear indication that the worst is yet to come,” said Giovanni Bisignani, IATA’s director general and ceo.

• The 7.9 per cent decline in air freight during October dragged year-to-date air freight volume down 0.8 per cent below the same period in 2007. Forecasted declines in key air cargo sectors such as semi-conductors indicate that the weakness is expected to continue.

• Asia-Pacific carriers, which account for 44.7 per cent of the international cargo market, saw international freight traffic decline by 11.0 per cent, reflecting the sharp drop in the region’s exports.

• North American and European carriers saw less precipitous declines of 7.6 per cent and 5.4 per cent respectively.

• In sharp contrast to passenger performance, African carriers saw a 3.0 per cent improvement in cargo during October. This reflects trade growth within Africa.

• Latin American carriers saw the largest decline (11.4 per cent).

• Middle Eastern carriers were the only others to report growth (1.0 per cent) in October.

In Passenger terms, Asia-Pacific carriers, which represent 31 per cent of global international passenger traffic, saw passenger traffic decline by 6.1 per cent (slightly improved from the 6.8 per cent decline in September).

A capacity reduction of 2.3 per cent could not keep pace with the drop in demand, taking load factors for the region’s carriers to 72.2 per cent. Year-to-date growth for Asia-Pacific carriers fell to 0.3 per cent, the weakest growth outside of Africa.

• North American carriers saw international traffic decline by 0.8 per cent in October compared to the previous year, only slightly changed from the 0.9 per cent drop in September.

European carriers saw traffic rebound slightly into positive territory with 1.8 per cent growth in October. While trans-Atlantic traffic growth was flat for the month, with both the European and US economies in recession, further declines in international traffic for both regions’ carriers are expected.

• Latin American and Middle Eastern airlines recorded 4.5 per cent and 3.5 per cent growth respectively. While better than the September traffic figures, both regions remain well below the double-digit growth rates experienced over the first half of the year. Economic forecasts for both regions see considerable slowing of GDP growth over the next 12 months to the 2-4 per cent range. Airlines in both regions can expect a continued slowing of growth.

• African carriers saw the largest decline with international traffic dropping by 12.9 per cent in October. It is the only region where traffic deteriorated relative to September. This continues the year-long trend of Africa being the weakest market for air traffic with falls in both intercontinental and regional travel.

“As the global economic downturn re-shapes the world’s financial industry, policy makers must understand that change is needed in air transport. Unlike the finance industry, airlines are not asking for handouts. Commercial freedom, efficiency and a fair treatment in taxes are needed,” said Bisignani.

“We need commercial freedoms to run this as a normal business. IATA’s Agenda for Freedom is building momentum among governments for access to markets and equity capital and the ability to merge or consolidate where it makes business sense. We need efficiency everywhere.

“At the top of the list is a Single European Sky by 2012 that would save 16 million tonnes of CO2 and over EUR5 billion in operating costs. And we need common sense in taxation. It was good news that the Belgian government has backed away from its plans to introduce a new departure tax. But the UK’s decision to hike its Air Passenger Duty is a major step in the wrong direction. Air transport is a catalyst for economic growth, But plugging budget gaps with gratuitous travel taxes is bad policy that is not sustainable. This must change,” said Bisignani.

Cathay to park freighters, cut cargo schedules as it battles the downturn

Magazine Stories January Issue 2009
Thursday, 28 January 2016
CATHAY Pacific Airways has announced a series of new measures including parking two freighters for a year and cutting freighter schedules to Australia, USA and Europe as it battles the economic downturn.

The airline still will receive four more new Boeing 747-400 Extended Range Freighters in 2009, though the delivery of its new Boeing 747-8Fs will now not begin until 2010.

Cathay already announced that it will seek an okay from Hong Kong’s Airport Authority to defer construction of the planned new Cathay Pacific Cargo Terminal at the airport, but stressed it still is committed to the building and to Hong Kong.

Other new initiatives just announced include cutting back on planned passenger capacity growth to less than one per cent (down from an earlier 6-7 per cent estimate) and offering aircrew including pilots the option of voluntary unpaid leave for between two and 52 weeks in 2009, effective January.

Services on some routes will be adjusted downward, though the airline plans to keep its network integrity intact and not cut any destinations.

The new capacity figure takes into account the airline’s previously announced decision to remove five Boeing 777-200 aircraft from its fleet and also covers delays in the deliveries of new aircraft as a result of the recent strike at the Boeing factory in Seattle.

Cathay Pacific chief executive Tony Tyler said: “This is a very difficult time for our airline and for the aviation industry as a whole, and we cannot see light at the end of the tunnel at this point.

“In view of this, and given the impact the current crisis is having on our core business, we have taken a number of measures to help ensure the financial health and long-term well-being of our airline.

“This is our number-one priority at this time, and we will continue to do all we can to keep our network intact and our team together.”

Tyler said the adjustments to the airline’s operating plan for next year were “necessary” given the expected global drop in demand. “However, the plan may well have to be revised again depending on how things unfold. Nothing can be set in stone at the moment. Visibility is low and it’s hard to predict developments with any real certainty. Flexibility will be the key word in the months ahead.”

Ex-Australia freight rates go global as downturn hits cargo load factors

Magazine Stories January Issue 2009
Thursday, 28 January 2016

THE GLOBAL economic downturn has taken a turn for the worse with the confirmation that the US is officially in recession -- but the negative is turning into a positive for Australian exporters.

The slow-down has freed up capacity at overseas hubs for cargo en route to Europe, the Middle East and intra Asia, with ex-Australia freight rates accepted for the through traffic, something that under normal circumstances is practically impossible, particularly for guaranteed space to the Middle east and Europe.

The Australian dollar, which has fallen to around US$0.64 cents, also is assisting air exporters.

Greg Toms, general manager of World Aviation Systems Cargo (WAS), Sydney, said it was hard to determine if the impetus in the market was because of the traditional seasonal upswing at this time of the year or was a genuine improvement in the market in general.

"October and November were unusually flat, but we are now seeing signs of increased activity," he said.

Toms said overseas markets had been sourcing produce from other markets and it takes a while for those contracts to be turned around, but he said WAS now was busy and the signs were good.

"The global economic situation still has to run its course and Australia will be affected to some degree," said Toms, "but all things considered we have renewed optimism and are taking the opportunities as they come along."

Toms was supported by Wexco chief David Williams who said business has been good since late October and had kicked again in recent weeks. 

"Consumer demand has fallen in the US and UK and this has freed up cargo space to those markets," said Williams.

"We have been able to get as much export space as required through to the US and UK and it's made a tremendous difference. Normally we have to fight for capacity, especially at this time of the year, but the market is currently very favourable for Australian exporters, particularly the perishable guys looking for bargain rates."

Williams is not sure how long the good times are going to last. 

"There has to be some impact on Australia from the global situation," he said. "It's tough for imports at this time. Australian consumer demand has softened and the relatively high US dollar is hitting imports."

Donna Mayne, from Brisbane-based gsa Cargo Services, said she usually was "frantic" at this time of the year but she said she was doing OK and that business had definitely improved in the last couple of weeks.

"Business is very good to New Guinea and we have been able to get some useful shipments off to the Middle East via SriLankan Airlines. Under normal conditions SriLankan would never be able to  accommodate us to the Middle East but at this time there are no restrictions and they welcomed the business," she said.

HACTL
Cathay Cargo
HACTL
Cathay Cargo