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The Cargo Letter
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Section A: Trade, Financial & Inland News | Section
B: FF World Air News |
Section C: FF World Ocean News | Section
D: FF in Cyberspace |
Section E: The Forwarder Broker World
- We Mourn ......... as Atlas Air chairman, president, & CEO,
Michael A. Chowdry, was killed in the crash of his private jet in an open
field near Denver, Colo on Jan. 26, 2001. Michael Chowdry founded Atlas in
April 1992, with one B-747 serving China Airlines.
- Now We've Hear Everything......... as Royal Dutch KLM &
Alitalia may open negotiations again about a possible merger of the two
airline companies. KLM broke off its proposed alliance with Alitalia last
year, saying that it ended the talks because of uncertainty about Alitalia s
privatization & the future of Malpensa airport in Milan. Indeed the
carriers vowed to sue each other over the deal. Serious rumors have it that
personality and culture clashes have been the mean reason for the sudden
stop of the talks.
- American To Take TWA.........as American Airlines will buy
financially troubled Trans World Airlines, the oldest continuous name in
American commercial aviation. The sale could end St. Louis-based TWA's
decade-long struggle to turn a profit. American does not plan to continue
the TWA name, consigning it to the ranks of such once venerable carriers as
Pan American World Airways & Eastern Airlines. Of the nation's top
airlines, TWA was the only carrier to lose money in 1999 -- US$353M, the
worst financial performance since the airline's 2nd financial reorganization
in 1995. It was on pace to do even worse in 2000, despite increasing
revenues.
- EU OKs UAL.........as United Airlines' bid to acquire US Airways
has been approved by the European Union, after the airline proposed
undertakings aimed at alleviating competition concerns arising from the
merger. The European Commission had expressed concern that 4 trans-Atlantic
routes from Frankfurt & Munich would be monopolized by United, already
the largest airline in the U.S., as a result of the merger. As a member of
the Star Alliance, the airline has an extensive transatlantic cooperation
with Germany's Lufthansa. It pointed out that airport congestion at
Frankfurt & Munich was a major barrier to expansion on the 4 routes for
airlines seeking to provide new or additional services. The proposed merger,
which is also being examined by the U.S. regulatory authorities, would hand
United control of 25% of the American market and generate revenue
approaching US$9B higher than that of the next-largest carrier, according to
a U.S. report. But not all are happy with the United move, as some experts
see Delta Airlines to be left a distant 3rd in the U.S. domestic airline
pecking order unless it moves to consolidate its position. In addition to
the United - US Airways deal, American Airlines will buy the assets of TWA,
to create 2 industry giants that will control approximately 50% the domestic
passenger market. This leads analysts to speculate that Delta may look for a
similar high-profile merger to avoid being left behind, perhaps with America
West, Alaska Airlines or Southwest.
- U.S. Volume Rises......... as a report issued by the U.S. Dept. of
Transportation shows a 4.9% increase in freight traffic moving in/out of the
U.S. over the year, ending June 30. U.S. & non-U.S. air carriers
transported 7.9 million tons of freight over the period. Top 5 foreign
destinations for freight were, in order, Japan, the UK, Korea, Germany &
Taiwan.
- LAX's US$12B Expansion......... as backed by a broad coalition of
business organizations & organized labor, L.A. Mayor Richard J. Riordan
& Los Angeles airport officials have released a Joint Draft
Environmental Impact Statement/Environmental Impact Report (EIS/EIR)
including a Draft LAX Master Plan, to guide the future development of Los
Angeles Int'l Airport for the first 15 years of the new century. The
documents analyze 4 airport alternatives. Based on the results of the
environmental studies, L.A. World Airports staff has formally designated a
"No Additional Runway" option as its recommended alternative.
Nearly all of the region's major business organizations & labor unions
have endorsed the staff-recommended plan The staff-recommended alternative
identified in the Draft EIS/EIR and accompanying Draft LAX Master Plan --
Accommodates 90% of the passenger demand & 100% of the air cargo demand
projected for LAX by 2015, while only increasing average daily flights by
4%. Creates 75,000 new jobs in the region while increasing the regional
economic contributions of LAX from US$60B to $82B annually by 2015. https://cargolaw.com/aalax.home.html
- FedEx Says OK To Cargo Super Jumbo......... as it has signed an MOU
with Airbus Industries to buy 10 new super jumbo A380-800 freighters. The
1st two A380-800 freighters are expected to enter the FedEx Int'l fleet in
2008, with 2 more in both 2009 & 2010. The last freighter will join the
fleet in 2011. FedEx is considered the official launch customer of the cargo
airlines to use the new planes. The A380-800 is expected to fit efficiently
into FedEx's global operation, which is based on its existing fleet of MD-11
freighters. However, the A380-800 can carry up to 165 tons of cargo or 66
containers, compared to 90 tons or 33 containers in the MD-11. As the
A380-800 enters the fleet FedEx expects to phase more of the MD-11s into the
domestic fleet. The triple-deck, super jumbo freighter will also use FedEx's
current cargo equipment. The plane is expected to load and unload in 20 to
23 minutes, about the same time it takes the MD-11.
- Boeing Leads -- So Far......... as it has turned the tables on its
French rival Airbus in what was a great year for both companies. Boeing
stole the show during 2000 with expected year-end sales of 600 jets compared
to Airbus' recently announced total of almost 500 planes. The result is a
turnaround from 1999, when Airbus captured 55% of global orders for aircraft
with 100 seats or more. It is just reported that Eva Air will switch from
Boeing to Airbus.
- Continental Named First......... as Air Transport World Magazine, a
leading monthly magazine covering the global airline industry, selected the
Houston-based carrier as its Airline of the Year for 2001.
- UPS & FedEx Agree On One Thing ......... as they both filed
motions with the Dept. of Transportation earlier this month asking it to
investigate DHL because of its ownership relationship with Deutsche Post
World Net, the German postal carrier. The U.S. companies cite a complex
series of changes by DHL in its corporate structure late last year.
- To Say Thanks For Coming......... as the Hong Kong Airport
Authority (AA) has received approval for an incentive arrangement for
airlines operating flights to new destinations from Hong Kong Int'l Airport
(HKIA). Under the arrangement, to be effective on March 25, airlines will
enjoy a 50% rebate on landing charges for the 1st year on flights they
operate to a new destination, & a 25% rebate during the following year
(order by midnight & receive a two months supply of aircraft tire
cleaner!). The incentive arrangement is the latest initiative by the AA to
expand the air network of Hong Kong and further develop hubbing activities
at HKIA. The 15% reduction in aircraft landing & parking charges, which
came into effect on Jan. 1 2000, will be maintained for the coming financial
year starting on April 1. Last year was the busiest ever for Hong Kong
aviation. Cargo was up 13.3% to 2.24 million tons.
- New Airforwarder Pres......... as Cathy Langham, president of
Langham, a transport & warehouse logistics provider, has been elected
chairman of the Airforwarders Association for 2001-02.
- Seperate Tables......... as Northwest Airlines' cargo division has
been incorporated as a wholly owned subsidiary, Northwest Airlines Cargo
Inc., doing business as "NWA Cargo."
- Tears
in Budapest....... as the
Hungarian government has to call off the partial privatization of its
airline Malev, due to lack of interest.
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Section C
Section D
Section E
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Written from wire stories, the Associated Press,
Reuters, Hong Kong Shipping News Lloyds & other world sources.