|
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
- Wings Clipped ........ as Emery Worldwide, the cargo
subsidiary of CNF Inc., claims that its freight
transportation operations have continued to operate
successfully despite suspension on Aug. 13 of flight operations of Emery
Worldwide Airlines (EWA). EWA has signed an interim agreement with the FAA
stating that it will immediately cease operating its fleet of 37 aircraft
until it fully resolves safety issues arising from past FAA
inspections -- company furloughed about 800 people.
Agreement extends for 30 calendar days. By the end
of that period, EWA will sign a final agreement with FAA, laying out
areas in which Emery will have to demonstrate its qualifications before
it can resume operations. FAA says inspections since January
2000 turned up more than 100 federal rule violations
& showed that the airline still has not corrected
safety problems -- FAA "lost confidence" in the airline, including
:
*Improper/inadequate repairs to mechanical problems,
including numerous repetitive pilot write-ups of the
same problem on the same plane over extended time
periods;
*Unapproved aircraft installations/alterations;
*Operating non-airworthy planes;
*Not following policies & procedures in manuals;
*Inadequate records;
*Failure to distribute & use current manuals.
Using a substitute fleet of contracted airlift from other
carriers, including Ryan Aviation, EWA says it is
successfully operating its N. American system, moving
more freight than it was averaging last week & more than its daily average
in July. Emery chapter of the Air Line Pilots Assn. said this action violates
it's contract -- and could shut down the company's freight operations
in 60 days if the union wins an arbitration process.
- Immediate Seating ........... as U.S. FAA officials
have downgraded South Korea's aviation safety rating, a
designation preventing two of its carriers from
expanding in the U.S. FAA dropped South Korea to Category 2 status
from Category 1 after a review of its civil aviation authority found it
failed to meet standards set by the Int'l Civil Aviation Organization.
When a country is in Category 2 status, its airlines are
allowed to continue flying to the U.S. but are
prohibited from expanding service or engaging in code-share
partnerships with U.S. carriers. Korean Air Lines, with links to Delta
-- and Asiana, that has code-share arrangements with American, will be affected
by the downgrade. On receipt of this happy news, President Kim Dae-jung
fired his transportation minister. Expect discussion. Expect lot's of
open seats.
- Asia - EU Opening ........... as South Korea's
Transportation & Construction Ministry said on Aug.
27 it had agreed with Germany to allow unlimited cargo
flights between the countries. Total cargo carried between the
countries stood at 58,737 tons last year -- expect growth.
- UPS Chief Retires .......... as James P. Kelly,
chairman & CEO of United Parcel Service, announced
his retirement from the world's top express company --
to be effective in January. Michael L. Eskew, the company's vice chair,
tapped as his successor. Kelly, 58, began working for UPS in 1964 as a package
delivery driver in Secaucus, N.J. He was named a senior VP in 1988 and
took over as chairman & CEO in 1997.
- British Airways & American Airlines Again?
........... as they unveiled plans on Aug. 3 for a new
alliance, saying competition over transatlantic flights
has increased since antitrust regulators blocked an earlier
pact 3 years ago. BA & American said they would file for U.S. antitrust
immunity, & would also seek competition clearance from the European
Union & Britain. American (world's largest airline) &
BA (Europe's largest) said they would step up
cooperation in their Oneworld Alliance & set up 9 transatlantic
routes as a joint venture with shared profits. They said the revived
plan had a better chance of approval than their earlier effort because
large, rival alliances have boomed since the mid-1990s. BA said rivals
airlines now had larger shares of takeoff and landing "slots" at
major European airports like Frankfurt & Paris'
Charles de Gaulle than BA's & American's combined
39% at London's Heathrow. U.S. antitrust regulators objected
to the previous American/BA alliance on grounds that it would dominate
flights across the North Atlantic. Britain's Virgin Atlantic Airways said
the proposed alliance was an attempt by BA American to use their dominance
to destroy competition in flights between Britain & the U.S. >>
American is also said extremely interest in a forthcoming
process during which leading Mexican carriers Aeromexico
& Mexicana, both currently controlled by
government-owned holding company Cintra may privatize.
- But Still Seeking KLM ......... as British Airways
still hopes to acquire the Dutch airline before the end
of the year, Sunday London Times reported Aug. 5: 'A
source close to the company said that BA would buy between
10% & 15% of KLM. It will eventually seek outright ownership. KLM's
cargo traffic decreased by 7% in July 2001, whereas capacity
increased by 2% for the period -- 400 to 500 jobs will
go -- mostly ground staff.
-
One Size Fits ..... ? .......... as the Coalition of
Airline Pilots Assn. (CAPA), a coalition of unions
representing 26,000 pilots, has urged the FAA to
implement one standard of safety for all air carriers. Specifically, CAPA
asked FAA to require all cargo carriers to adhere to the same rules as passenger
aircraft. The Assn. said that "unfortunately, most Americans are unaware
that FAA does not apply a single standard of safety to all commercial pilots."
As an example, the limits on flight-time/duty-time imposed on FedEx as
a supplemental carrier are not as comprehensive as those applied to the
average passenger pilot. "We all fly in the same airspace,
right next to, above, below, and around passenger
aircraft, so the lowest safety standard present, in
effect, becomes the controlling safety standard. Addressing this issue
is a crucial 1st step in improving overall airline safety" said CAPA.
-
Post Separation Depression ......... as US Airways
dismissed a probable offer of Emil Bernard, who said on
Aug. 5 that he prepared a purchase offer with his
'Global Airlines', of US$1.8B. US Airways stated: "Neither
Mr. Bernard, nor his company has established any meaningful credentials
in support of their so-called proposal, nor has he met with senior
executives of US Airways. The company ...... has no plans to deal with it."
Bernard's offer comes a week after regulators blocked United Airlines' US$4.3B
bid for US Airways.
- Red Baron On Top ......... as the Int'l Air Transport
Association (IATA) has listed Lufthansa Cargo as the
world's top airline in terms of scheduled freight ton
kilometers (FTK) for the year 2000. Lufthansa Cargo recorded
7.1 billion FTK with Korean Air's cargo division coming 2nd at 6.36 billion
FTK. Singapore Airlines was 3rd on 6.02 billion FTKs while Air France ranked
4th carrying 4.97 billion FTK. British Airways rounded off the top 5 with
4.56 billion FTK.
- Sadness At Aer Lingus ......... as Bernie Cahill,
chairman of Aer Lingus, the Irish national carrier,
& a veteran of the Irish Republic's corporate scene
drowned on Aug. 17 in a boating accident.
- Slow Down! .......... as the prospect of airlines
making profits in 2001 will disappear unless they curb
capacity growth. Airlines added 4% capacity in the 1st 6
months of 2001 but total traffic, including passengers &
freight, grew only 0.5%, IATA, said in a statement. "These figures point
to a worrisome evaporation of traffic growth," IATA
Director General Pierre Jeanniot said. "Unless IATA
members are able to drastically curtail their capacity
growth during the next few months & further control their costs, all
prospect of profitability for the year 2001 will quickly
disappear." Freight traffic fell 6% in June,
compared with a year earlier. For the 1st half, traffic
measured in revenue ton kilometers fell 3%, after negligible growth in
1st quarter.
- Dumping Jumbo ........ as 3 unprofitable Asian
carriers are selling costly Boeing 747-400s at a time
when global overcapacity & changing airline strategies
have left used aircraft values very weak. Despite the prospect of getting
poor prices for the large & efficient aircraft, a total of seven B747-400s
from Malaysian Airlines, Korean Air & state-owned Air China were listed
for sale on Boeing's sales Web site.
www.boeing.com/assocproducts/airtrade/
- Alitalia On The Team ......... as Italy's carrier,
which has a cargo fleet of two B747-200 freighters &
one B747-400 freighter, will soon join SkyTeam Cargo,
the 1st global cargo alliance. With Alitalia, SkyTeam Cargo will
offer the largest global network out of Italy, one of Europe's leading markets
for air freight. Alitalia's dual hub airport operations are at Milan Malpensa
& Rome Fiumicino. The alliance is composed of Aeromexico, Air France,
CSA Czech Airlines, Delta Air Lines & Korean Air.
- Alitalia Off The Team .......... as Northwest Airlines
& Alitalia reached a mutual agreement to discontinue
their marketing relationship, effective Oct. 28, 2001.
- Taiwan Shopping Ashore ......... as mainland
authorities have given approval for a 25% stake of
Shanghai-based China Cargo Airlines to be sold to Taiwanese
carrier China Airlines, according to a report in the China Daily. The
stake is being sold by China Eastern Airlines for an estimated US$64M.
China Eastern is currently the biggest shareholder in China
Cargo Airlines. China Airlines is establishing a
cargo terminal joint venture in Xiamen city with fellow
Taiwanese airlines EVA Airways & Far Eastern Air Transport corp.
- SAS Fesses Up .......... as the Scandinavian airline
has made a public apology to its customers & staff
for involvement in an illegal cartel with Danish rival
Maersk Air. SAS Pres. & CEO Jorgen Lindegaard made an admission of
full responsibility for entering into of an illegal verbal agreement with
Maersk Air concerning market division. It was this agreement
that formed the basis for the subsequent, approved
cooperation agreement between the partners. After the
statement, Lindegaard resigned.
- Reinventing Amerijet Int'l ............. as the Ft.
Lauderdale-based cargo airline has filed for
reorganization under Chapter 11 of the U.S. Bankruptcy
Code. The airline said the action was due to a number of factors, but
noted specifically FedEx taking over the U.S. Postal Service's contract
from Emery Worldwide, with whom Amerijet had a charter contract
since Jan. The loss of business resulted in idling
six B727s, or half of Amerijet's air fleet. Amerijet,
whose core focus is scheduled & charter service to the Caribbean,
Mexico & Latin America, said there would be no disruptions cargo services
during restructuring. In fact, Amerijet said it was expanding Latin America
service, adding a new route to a 3rd city in Venezuela.
- Go For It? ......... as New Zealand has said it will
fully cooperate with the process being established by
the Australian & New Zealand governments to
determine airline ownership issues in the wake of the bid by Singapore
Airlines to increase its stake in Air New Zealand. Controversy has surrounded
the Singapore Airlines proposal to increase its stake in Air New Zealand
to 49%, a move that would contravene current foreign ownership laws in
New Zealand. The Air New Zealand group includes Australia's 2nd largest
carrier Ansett Australia. Concerns have also been voiced by the
Australian government which fears a detrimental effect
on regional competition, particularly on Australia's
national carrier Qantas, should the Singapore Airlines
deal go through. The Australian government is subsequently pushing for
a counter proposal by Qantas to buy Singapore Airlines' 25% stake in Air
New Zealand and, in return, to sell it Ansett, the Australian
carrier owned by Air NZ. However, the board at Air New
Zealand favors the Singapore Airlines bid & is
lobbying the New Zealand government to relax restrictions that
limit the stake a foreign company can have.
- Thaing The Knot? ......... as Lufthansa reiterated its
strong interest to buy a stake in Thai Airways Int'l
after the German airline company's chairman met Aug. 2
with Thai Prime Minister Thaksin Shinawatra & Finance Minister
Somkid Jatusripitak. The Thai government plans to reduce its stake in
the airline to 70% from 93% currently, through a public offering & the
sale of 10% stake to a strategic partner.
- Canada 3000 Reduces Cargo Interest .......... as it
(through wholly owned subsidiary Royal Aviation Inc.),
will sell a 50% interest in its cargo subsidiary Royal
Cargo to Flagship Int'l Marketing for US$10M.
- Emery Worldwide Goes Big In Singapore .......... as it
has begun work on a regional logistics hub at the newly
developed Airport Logistics Park of Singapore. Emery
expects the US$5.8M terminal completed by 3rd quarter of 2002
-- with 112,500 sq. ft. of warehouse space, 17,000 sq. ft. of which will
be refrigerated, as well as 17,500 sq. ft. of office space --
located within Singapore Changi Airport Free-Trade Zone.
- Sabena Shrinks ............ as the Belgian airline
will downsize, lay off 1,421 employees & sell off
subsidiaries to its cut losses & attempt return to
profitability. Sabena ground workers have been forcing cancellation of
many Sabena's flights from Brussels airport since Aug. 7. Sabena reported
a loss of US$122M in 1st half of 2001, US$48.7M more than the
year before. In the past 25 years the airline has lost
more than US$1.5B.
- Braathens Future? ......... as the Norwegian
Competition Authority has issued its preliminary evaluation of SAS' potential
acquisition of Norwegian airline Braathens -- opposing its implementation & will
take action against the acquisition. The Competition Authority bases said it has
not been sufficiently proven that Braathens is bankrupt. Braathens
had approached SAS because it claimed to be on the brink of bankruptcy &
unable to survive without SAS ownership. It claims that jobs will be lost if
this acquisition does not materialize.
- By The Skin of Air Afrique's Teeth ......... as it's
future has finally been decided after months of
deliberation by the 11 African countries which have had
a controlling stake in it. The beleaguered airline's fate has been
hanging in the balance since it accumulated over US$400M in debts & lost
all but 6 of its aircraft. The French government & Air
France will rescue the airline with a cash injection of
US$70M. The airline will be liquidated & reformed as
a new company, but this also has been met with dissent by employees
who recognize that the move will lead to job cuts. Under the Air France
proposal, the French carrier will hold 35% of the airline while the 11 current
African national owners would hold only between 22 & 28%.
- Back To The Nam ......... as the U.S. Dept. of
Transportation (DOT) tentatively granted rights to 3
U.S. airlines to provide air services to Vietnam in
conjunction with their 3rd-country airline partners. "Travelers will
now have access to Vietnam in conjunction with U.S. airline services for
the 1st time in decades," U.S. Transportation Secretary
Norman Mineta said. In a show-cause order, DOT
tentatively awarded U.S.-Vietnam code sharing rights to
Delta, Northwest & United. A total of 21 round-trip code sharing flights
are available, & each carrier received 7 of the flights. In a March
2000 Memorandum of Discussion, the U.S. & Vietnam agreed to
allow code sharing services between their countries.
- Northwest Rebuilt At SEA-TAC ......... as Northwest
Airlines has opened 2 new facilities at Seattle-Tacoma
Int'l Airport. A 151,000 sq. ft. aircraft maintenance
building with 86,000 sq. ft. of hangar floor, & a 55,000 sq.
ft. cargo facility were built to replace Northwest's existing buildings,
which were located in an area designated for passenger terminal
expansion.
- LanChile Heavy At MIA ......... as it has doubled the
size of its North American headquarters, by into a new
US$55m, 400,000-sq. ft. center, the largest cargo
facility at Miami Int'l Airport.
- WANTED: Airlines ....... as Brussels airport is
looking to attract at least 2 major airlines to offset a
possible drop in business from the troubled national
carrier Sabena. Brussels is the 10th largest European airport
in terms of the number of passengers.
- U.S. Gets New Strip .......... as San Jose Int'l
Airport celebrated the opening of Runway 30 Right, the
completion of the 1st major project of the Airport
Improvement Program & the 1st of only two new commercial runways to
be opened this year in the U.S. The runway was opened with American Flight
#151 to Taipei, Taiwan, Aug. 20, 2001.
- Rush To Kuala Lumpur......... as Cargolux has
increased its flights to Kuala Lumpur Int'l Airport (KLIA)
at the same time that U.S. based Evergreen Int'l
Airlines has initiated cargo flights there, both in a bid to grab a bigger
slice of the air cargo traffic pie at KLIA. The moves come at a time when
Malaysia-based carrier MASkargo has announced a 75% rebate on terminal charges
for redocumented transshipment cargo handled at KLIA. A report on it's
web site claims the Airfreight Forwarders Association of Malaysia (AFAM)
has welcomed the MASkargo initiative, but wants the remaining
25% axed as well to ensure KLIA begins to compete within
the rest of the region as a cargo hub.
- Falling Barriers .......... as Israeli national
carrier El Al has hired Merav Schwartz as the 1st female
pilot in the company's history.
- Cathay Hooks Up .......... as 1st ever delivery of an
Airbus commercial airplane fitted with global in-flight
E-mail & Web services is part of Tenzing
Communications' current agreement to provide in-flight e-mail &
Web content across Cathay Pacific's entire fleet. Cathay Pacific passengers
can now send & receive E-mails. Meanwhile, Cathay Pacific
Airways' pilots on Aug. 21 voted overwhelmingly in favor
of taking tougher action against the airline as their
pay dispute with management drags on. Stay tuned.
- Alligators Can Fly .......... as UPS is investigating
how it shipped a live 5-foot alligator Aug. 3 overnight
to New York City. Workers who checked out a leaking box
on a company truck found the alligator, its snout & feet bound
with duct tape. New York animal control officials seized the 40-pound gator,
which was not injured. UPS prohibits the shipment of live animals.
- Chicks Can't Fly .......... as Northwest Airlines
stopped accepting baby chickens shipped via the U.S.
Postal Service on Aug. 15. Three airlines continue to
ship chicks via regular mail -- Delta, Continental & US Air. Northwest
will continue to ship chicks through its cargo service. More of this
commodity moves than you might think.
www.mcmurrayhatchery.com
- Her Joke Bombed ......... as an 83-year-old Colombian
woman, apparently upset when a flight attendant wanted
to check her carry-on luggage, made a false bomb threat
that landed her in jail on Aug. 8. Beatriz Escobar De
Rodriguez, of Bogota, was removed from an American Airlines jet bound
for her homeland at Miami Int'l Airport. She boarded the plane with carry-on
luggage that could not fit in the overhead compartment or under the seat.
A flight attendant told her the luggage should be checked & placed in
the cargo bay. "Did you see the bomb in my suitcase?"
Escobar De Rodriguez asked flight personnel. The plane
was taxiing for takeoff when the pilot decided to return
to the terminal & have the passenger removed, delaying the flight
for 2 hours. A search of Escobar De Rodriguez's luggage found no bomb. She
spent the night at a detention, appeared before a judge & was released on
US$5,000 bond.
- Had Fidel Ordered Extra Pepperoni -- Promised Big Tip?
........ as pizza delivery man Milo John Reese was
finally returned back to the U.S. after he flew a small
plane to Cuba from the Florida Keys. Reese had been taking
flying lessons for about 2 weeks from Paradise Aviation, which operates
out of Florida Keys-Marathon Airport. He took off on his 1st solo flight
on July 31 in a Cessna 172 owned by the flight school, and was supposed
to circle the airport & land. Instead, he flew the plane to Cuba, crash-landing
on rocky terrain a few miles from Havana. Reese is said to have a
history of mental illness & no apparent ties to Cuba. Reese left his home
in Reno, Nevada, on June 14, & was living in a motel in
Marathon. He worked as a delivery man for a Pizza Hut
restaurant. The extra large pepperoni was not recovered.
- Partial Post ......... as postal workers in Czech city
of Brno were shocked to find a human arm & leg in a
suspicious smelling package on Aug. 23. The box had been
sitting at the post office since August 20 because no one
came to collect it. It had been mailed from Prague 4 days earlier.
Personnel opened it when the grisly package began to stink (do
you think?). Perhaps mail treats ordered from
"Hannibal & David" catalog?
Please click below for other sections:
Section A
Section C
Section D
Section E
Please click below to go back to the Cargo Letter home page.
Cargo Letter Home Page
Return to the top of Section B
Written from wire stories, the Associated Press,
Reuters, Hong Kong Shipping News Lloyds & other world sources.