The Cargo Letter
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
- Slower Growth ......... as the Int'l Air Transport
Assn. said member airlines reported a 9.2% rise in
freight ton-kilometers in 2001, according to its World
Air Transport Statistics 2001 edition. Total available ton-kilometers
increased 7.0%, while overall weight factor rose 1.5% to 65.5%.
U.S. Int'l air freight & express traffic decreased 3.7% in April, according
to statistics issued by the U.S. Air Transport Assn. The complete IATA
World Air Transport Statistics 2001 is available at:
- U.S. Airlines Afraid? ........ as officials of
& Delta wrote U.S. Transportation Secretary Norman
Minetasay this month that
they are concerned about a possible new 'open skies' bilateral
between the U.S. & Britain because such an agreement could
result in a
'collapse of competition.' This said, the U.S. has just
entered up an 'open
skies' agreement with Poland that will take effect in Dec.
2003. Read the JOC
- Fewer of Us .......... as FedEx Corp. will lay off 130
workers in the Austin area as it reorganizes a unit
& ends a contract to manage warehouses for Dell
Computer. Likewise, Airborne Express will lay off 640 workers, or 2.5%
of its total work force, ranging from management to line workers, in response
to the weakened economy. Likewise, New York-based Atlas Air will cut 200
ground staff jobs & take six B747-200 aircraft out of service due to the
current economic slowdown in the U.S.
- We Like To Get Together In L.A. .......... as more
than once a week on average, a U.S. runway collision is
avoided only when a plane or a vehicle has to quickly
move out of the way. There were 68 such serious incidents last year,
out of 431 runway incursions reported, despite government efforts to reduce
the number of airplanes, people & vehicles entering runways when they're
not supposed to. Among the major airports, LAX had the highest number of
incursions over the 4 year study period, 33, with 14 of them major. St.
Louis was 2nd with 30 incursions, 3 of them major.
- Red Baron's Boys Bounce Back ........ as Lufthansa
averted further damaging strikes June 8 by sealing a pay
deal with its disgruntled pilots of the Vereinigung
Cockpit Pilots Union. But the contract could bruise the company's
finances & drew complaints from other union leaders who say the pilots
got too much. The 3 year pay increase, which amounts to nearly a 30% raise
in the 1st year, ends a dispute that proved an embarrassment & financial
liability to Europe's 2nd biggest airline -- there having been two 24
hour strike disruptions so far this year. By the way, Boeing & Lufthansa
announced that Lufthansa jumbo's will have high-speed,
in-flight Internet access in 2002.
- Historic Combinations ......... as Taiwan's largest
carrier China Airlines hopes to finalize the purchase of
a stake in China Eastern Airlines Corp. Ltd's cargo
subsidiary by the end of this year. The airline has not released
financial details of the planned deal, but it has previously said it plans
to buy a 25% stake & shareholders have approved a maximum investment of
US$60M a year in China's aviation industry. China Cargo, is 70%
owned by China Eastern Airlines & 30% owned by China
Ocean Shipping Corp. (Cosco), China's flagship shipping
No Combination? ......... as Transportation Secretary
Norman Y. Mineta said this month he expected the federal
government to reject the proposed United Airlines-US
Mega Allies ........ as Korean Air has joined Air France
& Delta as a founding member of a cargo joint
venture, to be launched later this year. The carriers
are also founding members of the SkyTeam Cargo alliance with Aeromexico
& CSA Czech Airlines. This new venture will offer the benefits of a
combined sales force, a centralized reservation, a comprehensive route network
& a common product line. The joint venture will be based in Atlanta
with regional offices in Atlanta, New York, Chicago & L.A.,
and will be staffed by cargo employees of all 3
carriers. The company will be equally owned by Air
France, Delta, Korean Air, & governed by a joint board.
- Thai Ally ........ as Qantas Freight has formed an
alliance with Thai Air Cargo to establish an intra-Asia
freighter network. Thai Air Cargo is a privately owned
airline. The network will be based in Thailand & provide express
operators and exporters with overnight prime cargo space into major Asian
markets. Operations due to commence in 2nd half of 2001 using wide-bodied
- DHL Worldwide & Northwest Airlines Cargo -- Allies
......... as they are combining forces to provide
services linking the U.S. & Asia. The multi-million
dollar deal is seen by DHL as a means to consolidating its market
position in the Asia Pacific region. On July 16, DHL will commence new cargo
routes directly between its U.S. hubs in Cincinnati & Los Angeles, and
its operations in Tokyo, Osaka, Beijing, Shanghai, Seoul, Hong
Kong, Taipei, Manila, Bangkok, Singapore & Kuala
Lumpur. Shipments to/from these Asian cities to the east
of Denver in the U.S. will enjoy direct cargo connections with
the Cincinnati hub, while customers to/from Denver westwards will continue
wih DHL's service through its SFO & LAX Int'l gateways.
- More Than Neighbors .......... as Italy's government
has given Alitalia the go-ahead to forge an alliance
agreement with Air France. The Italian treasury said it
viewed positively the recent negotiations between Alitalia
& Air France.
- There'll Be No Delta Strike ........ as it's pilots
ratified a 5 year contract, ending months of
negotiations. The contract will cost Delta US$2.4B over
the next 4 years. The new contract provides wage increases over the life
of the contract of 24% to 39% for mainline pilots, and up to
63% for Delta Express pilots & becomes amendable May
- But At Cathay Pacific -- Get Ready! ........ as it's
pilots' union moved a step closer to a showdown with the
airline after pilots voted overwhelmingly on June 19 in
favor of "limited industrial action" from July 1 if
differences over salaries & employment terms were not resolved. Matters
moved even closer to the brink on June 30 as Cathay Pacific rescinded its
latest pay offer after acceptance deadline passed without result. Cathay
says it will not return to the bargaining table unless pilots
completely withdraw their threat of industrial action.
- Begin The Riau ........... as an end of July deadline
has been set by authorities in the Indonesian province
of Riau for the beginning of operations by its new
airline. "Riau Airline", owned by the province's regional
administration, will begin commercial flights when it secures a commercial
flight licensing permit from Indonesia's authorities. Winner of the
airline naming contest has not been released.
- Over & Under ........ as KLM's cargo traffic
increased by 2% in May, whereas cargo traffic of British
Airways fell by 7.6% in May 2001, compared to May 2000.
Still, BA World Cargo reported revenues of US$900M for the financial
year ended March 31, 2001 - a rise of US$66M or 7.9% from the previous
- Taking Over -- Under ......... as Qantas has tried to
appease the New Zealand government & regulators over
its plans to acquire a majority stake in competitor Air
New Zealand. If successful, Qantas said it would leave a majority
of Air NZ in New Zealand hands. Air NZ would also retain its brand, its
headquarters in Auckland, & a New Zealander chairman.
- Going Under ......... as AOM & Air Liberte, the
money losing French airlines of Swissair Group, have
faced possible bankruptcy proceedings by the end of June
following the failure of shareholders to provide more money or find
new investors. Now it's good-bye for Air Liberte as it's management filed
for bankruptcy under French law.
- Going On It's Own ......... as Singapore Airlines'
cargo division will become a separate company within
Singapore Airlines Group & the designated all-cargo
airline of Singapore.
- Cyprus Airways Was Born Every Minute ........... as
the Greek-Cypriot carrier is the main company to acquire
Olympic Airways, although it offered to buy only a
minority stake in Olympic, while Greece wants to get rid of the majority
of its ailing carrier. Indeed, this is one of our longest continuing stories
-- including the dolmas.
- Argentine Carrier Gets Call From The Governor .......
as ailing Aerolineas Argentinas, owned for 92% by the
Spanish state holding company Sepi, got a surprise 11th
hour bid from Peru's AeroContinente -- but the move might
be too late to save the day. Stay tuned.
- Mother Nature Comments On Scheduling .......... as
United canceled nearly 100 flights June 21 after a storm
that produced hail the size of golf balls damaged 32 of
its planes in Denver -- at least one hit by lightning.
- French Take Out .......... as Schenker Aeroparts
Systems has set up a joint venture with Air France
Express, the air express subsidiary company of Air
France. The companies are offering an original global air express transport
solution across the Air France-Skyteam alliance & the Schenker network,
as well as express handling operations. Through its partnership with Air
France Express, Schenker can take advantage of all the facilities covered
by a US$4.7M Air France investment in Paris, which includes a
14,000 square meter express warehouse, a sorting system
with a capacity of 6,000 parcels per hour, customized
trucks, computerized tracking & bar coding.
- Fries Will Be Extra ........ as American Airlines
Cargo has broken ground for the country's 1st drive-thru
service for small package shipments offered by a
passenger airline. The new 14,400 square foot Global Priority Shipping
Center, is located at Dallas/Fort Worth Int'l Airport.
- The Big Top ......... as the new 1.5 million square
foot "Terminal 4" at JFK Int'l Airport New
York, opened on May 28. -- one of the largest public &
private projects in the U.S., & the 1st time that a U.S. air terminal has
been developed by a non U.S. airport operator. It was built by
JFK Int'l Air Terminal LLC (JFK IAT), a private
consortium in which Schiphol USA, subsidiary of Schiphol
Group, holds a 40% share, and by LCOR Inc, a national real
estate developer, also holding a 40% share. Lehman Brothers Inc. holds the
remaining 20% share. Investment for the terminal was US$1.4B. Forty mainly
internationally operating airlines will make use of this new facility.
- Slow Take Off ....... as shares in Frankfurt Int'l
airport operator Fraport AG failed to take off on their
stock market debut on June 10 after being issued at a
price near the top of investors' expectations.
- Cerro Moreno Reopens ......... as the Chilean airport
will start full operations this month, 3 months ahead of
schedule. In Antofagasta on the northern Chilean coast,
it has undergone a US$7.5M refurbishment program financed
by its owner, Spanish company Cintra.
- Don't Play On The Runway ......... as there were
259,554 grade crossings in the U.S. as of 1999,
according to the Federal Railroad Administration, and
they were the sites of 402 fatalities. By comparison, 83 people
died in commercial airline crashes last year. However, we are not told how
many people were run over at airplane crossings.
- Sonic Cruiser? ......... as Boeing has explained more
about it's proposed new marvel -- the Sonic Cruiser has
attracted attention because it would fly at 95% of the
speed of sound (mach .95), compared with the mach .80 to
.86 that jetliners have stuck to for decades. To do that, its design would
be radically different to the familiar layout that Boeing's 707
established in the early 1950s. The proposed plane would
have an aft-mounted wing, partly triangular, with
engines hung behind it.
- Codeshare With A Train? ......... as Amtrak &
Icelandair have teamed to provide unique travel to
Europe with the introduction of the 1st U.S. train &
plane codeshare. Travelers purchase tickets for travel between Washington,
D.C. or Philadelphia & Scandinavia, the Uk & Europe.
- Historic Anniversary ......... as 94 yeas ago, in
1907, the world's 1st air force was established with
formation of the Aeronautical Division of the Office of
the Chief Signal Officer of the U.S. Army.
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Written from wire stories, the Associated Press,
Reuters, Hong Kong Shipping News Lloyds & other world sources.