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The Cargo Letter
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Our Top Story: In The Wake |
Section A: Section: 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
Freight Forwarder Trade Briefs
- FAA Shows Examples of What Will Not Be Tolerated ........
as
recent examples enforcement actions against airlines for security violations
include:
- Trans World Airlines, accused of 4 security violations for failing to detect
a dynamite bomb, an object commonly used by the FAA to test the system,
slipped past screeners at San Jose (Calif.) Int'l Airport in Aug. 2000. No
penalty imposed.
-
Delta Airlines, failing to screen 2 passengers & their carryon bags before
they boarded Atlanta-Salt Lake City flight in Sept. 1999. Paid penalty of
US$77,000.
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American Airlines, failing to check passenger IDs, failing to ask the
required security questions at check-in counters & shipping unaccompanied
luggage at several airports in June 2000. FAA proposed US$99,000 penalty;
disposition unknown.
-
Continental Airlines, carrying 13 unaccompanied bags on a Houston-London
flight in Aug. 1998. FAA verified airline took action to correct its security
procedures. Penalty of US$120,250 proposed; disposition unknown.
-
TWA, failing to perform required background checks on 44 contractors'
screening employees. Airline ordered to remove or reassign screeners in Nov.
1999. Penalty of US$126,750 proposed; disposition unknown.
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American Airlines, 51 violations of FAA rules covering display of ID badges
by employees at Dallas/Ft. Worth Int'l Airport. Penalty of US$250,000 ordered
in Feb. 1998, appealed by the airline & upheld by administrative law judge.
- Euro Sky? ........
as European Commission (EC) has adopted a package
of proposals on air traffic management designed to create a single European
sky by Dec. 31, 2004. The attacks of Sept. 11 have demonstrated need for
better integration of security aspects in air traffic management through
better integration & harmonization of procedures.
- June 2001 Already Showed Slow Down ........
as results from 700
airports worldwide show passenger traffic up 2%, cargo slipped a sharp 9% &
aircraft movements moved down 1% compared with June 2000. Cargo volume
handled showed a slight increase in Africa (+1%) and was flat in the Middle
East. It decreased dramatically in North America (-12%), Latin
America/Caribbean & the Asia Pacific region (both -9%) and Europe (-5%). The
top 3 cargo airports, Memphis (198,000 tons), Los Angeles (182,000 tons) &
Hong Kong (166,000 tons) showed declines just like the other 22 of the
busiest 30 airports. Only 4 airports recorded increases: Beijing, Miami,
Dubai & Indianapolis.
- Back To Burger Flipping? ........
as it is possible that the U.S. will
take over airport security screening now contracted to private security firms
by the airlines. While some of the screening firms are in hot water over the
Sept. 11 tragedy, they have been also lobbying Congress to allow the current
private sector system to remain. But the Congressional tide may be turning.
www.lexis-nexis.com/more/cahners-chicago/11499/7616076/1.
- France & the U.S. Open Skies ........
as they have struck an "open
skies" air transport liberalization pact, paving the way for closer ties
between Air France & Delta Air Lines, France's Transport Ministry said on
Oct. 19. The 2 airlines have joined forces in the Skyteam partnership, which
also includes Alitalia, Aeromexico, CSA & Korean Airlines. Delta & Air France
have requested immunity from antitrust laws to proceed with plans to deepen
their SkyTeam alliance, although the French ministry statement did not say
explicitly whether or how this issue was dealt with by the new pact. Ministry
said pact would allow Air France & Delta to coordinate more closely on fares,
scheduling & revenues, putting Skyteam on an even footing with other
partnerships of its kind in the world airline industry. The French Foreign
Ministry added, "The French & American carriers will be able to operate
without restrictions in terms of the places they serve, advancing by one year
what was envisaged in the 1998 deal." American Airlines & British Airways are
looking to do the same with the "Oneworld" alliance as are United & Lufthansa
AG with the "Star" alliance. Also this month, the U.S. & Morocco signed an
"open skies" aviation agreement which replaces a bilateral agreement dating
from 1970.
- Emery Worldwide Takes Comeback Hit ........
as it has agreed to pay
US$1M to the U.S. FAA as part of a settlement that will allow the cargo
carrier to fly within 6 months. Under the settlement, Emery will pay the
penalty without admitting any violations, & without FAA claiming that
violations had occurred ("don't ask, don't remember?"). Company's fleet was
grounded Aug. 13 after FAA inspectors found Emery did not comply with FAA
requirements for safety & related issues. Emery agreed to immediately cease
operating its fleet until it complied with FAA requirements. In Feb. 2000, an
Emery plane crashed near Sacramento, Calif., killing an 8 member crew.
- Lights Back On At Bankrupt Swissair ........
as a US$2.65B deal
between an unsalvageable Swissair & the Swiss government will create a new
national airline. Based on the remains of Swissair, the new airline will see
the Swiss government pay a third of the costs. Swiss companies will finance
the remainder while profitable Swissair subsidiary Crossair will manage the
airline. The European Commission protested about the proposed
recapitalization but was unable to stop the operation from going through --
Switzerland is not a member of the European Union.
- The Kiwi Is Limping ........
as Air New Zealand's president & CEO Gary
Toomey is to leave his position with the airline by mutual agreement with the
board of directors. Although Toomey was never a director of either Ansett
Holdings or Air New Zealand, Air New Zealand senior management claims he has
personally borne the brunt of Australian anger arising out of the Ansett
closure & deserves every sympathy & consideration for that fact. More, Air
New Zealand will be cutting back flight schedules for Nov. by 10.5%, as a
consequence of reduced demand for Int'l air travel following Sept. 11. The
company says the reduction in flying, coupled with necessary reorganization
following loss of Ansett from the group, will have an impact on staffing --
between 1,000 & 1,500 job losses.
- Nac TTesna Eb Devas? ........
as 2 leading Australian business
entities on Oct. 19 outlined a plan to revive the fortunes of Ansett, the
failed Australian airline, with a potential investment of at least US$1.3B.
Linfox Transport, the Australian trucking group, & Coles Myer, the Australian
retailer, said they expected to make a deal with Ansett's administrators
shortly. Their consortium, Ttesna (Ansett spelled backwards), is in talks
with Airbus for 29 new planes. Ttesna also wants to hire about 4,000 former
Ansett staff. Plan rivals an earlier-announced scheme to revive Ansett from
ANstaff, a group headed by some of the airline's former pilots. Ttesna's
offer was distanced from Singapore Airlines which is in talks with Ansett's
administrators who have kept the Ansett name afloat, with government help,
running heavily reduced services between Australian capital cities.
- Sabena On Oxygen ........
as Virgin Atlantic boss Sir Richard Branson
has emerged as a possible savior for ailing Belgian carrier Sabena. Sir
Richard will hold talks with the Belgian Prime Minister over future of the
airline. Sabena recently won court appointed protection from creditors to
operate for another month while it tries to restructure. A post Sept. 11
Belgian government loan -- called a rescue loan -- came before the EC
declared it would not sanction U.S.-style aid packages to European airlines.
The EC stance prompted speculation that the Belgian government's loan to
Sabena could be declared illegal. But the EC has now ruled that the US$114M
loan constitutes temporary "rescue aid," and is therefore not considered
restructuring aid which would be in violation of the EC's decision. The EC
says the loan is merely there to keep the ailing Sabena afloat until such a
time as the airline can put a restructuring plan together. Predictably, EC's
position drew fire from Sabena's competitors, most notably Ryanair, which said
it would take legal action to halt the loan. Other struggling EU carriers
such as Aer Lingus are watching.
- SAS Buys ........
as the Norwegian Competition Authority has
announced approval of the SAS' acquisition of the Norwegian airline Braathens.
- Broken Radar? ........
as officials investigating a collision
between 2 planes at Linate Airport in Milan (Italy) said that fog, human
error & a broken ground radar system were most likely causes of the crash
that killed 118 people. Earlier Italy's Civil Aviation Authority blamed pilot
error for the country's worst air disaster, but it said it could have been
avoided if ground radar system was working. The Italian Government ruled out
terrorism. Authorities said that one of the planes involved in the crash --
the Cessna piloted by 2 Germans & with 2 Italian businessmen aboard --
appeared to have taken a wrong turning when heading towards a position for
takeoff, bringing it onto the runway. SAS insists that the pilot of their
plane, which was bound for Copenhagen, was not responsible for the crash.
- KLM Cargo Rises ........
as it will increase air freight rates from
Nov. 1, 2001 -- a result of the current adjustment of air cargo capacity.
Rates will be increased from Europe on N. Atlantic routes by an average of
5%. Due to high market demand on routes to Mexico, Japan, Korea, China, &
some Middle Eastern destinations, rates on these routes will be raised by
between 5% & 7%. In addition, KLM Cargo imposed a surcharge of US$0.14 (EUR
0.15) per kilo on all shipments from Oct. 15, in the wake of terrorist
attacks in the U.S.
- Lufthansa Cargo Slips ........
as volumes fell by 7.2% to 1,230,817
tons for 1st 9 months of 2001. The cargo load factor of 61.45 at the 3rd
quarter stage during this period was down 6.1% year-on-year.
- Dynamite Deal ........
as effective from October 29, TNT Express
will become the sole supplier of European airborne feeder services for KLM
Cargo -- will share TNT Express' freighter capacity on key routes. The
cooperation will allow TNT Express to extend collection cutoff times &
provide shorter door-to-door delivery times in many parts of Europe, while
KLM Cargo will no longer operate its leased freighter on European routes.
- Emery Expedite Guarantees ........
as the subsidiary of CNF Inc.,
says it's the 1st company of its kind to offer a money back guarantee for all
services, including charter, air & surface shipments. If any shipment fails
to meet the deadline (subject to terms & conditions), Emery Expedite! will
refund up to 100% of the invoice amount.
- FedEx Express Passes Gas ........
as it will lower its fuel surcharge
to 3%, from 4%, beginning Nov. 5.
- Cargolifter About To ........
as the German company specializing in
lighter-than-air craft, says it has entered a new chapter in its history with
the CL 75 AC cargo airship (75 ton lift) having been taken out of the hangar
for the 1st time -- Oct. 12, the 61-meter-diameter ship, floating at a height
of about 15 meters, was pulled by mobile cranes for 1 km to a neighboring
airfield where it was anchored.
- Heavy Mates ........
as Air Foyle & HeavyLift Cargo Airlines,
outsize cargo specialists, have finalized a joint venture, Air Foyle
HeavyLift Ltd., to market & promote worldwide commercial charter flights
operated by Ukrainian carrier, Antonov Airlines. Antonov's fleet includes 8
AN-124-100 freighters & a 250 ton payload AN-225 airplane, scheduled to be
certified for worldwide charters by the end of Nov.
- Pioneer Passes ........
as Walter H. Johnson, Jr., an air cargo
industry pioneer & one of TIACA's founders, died Oct. 16. Johnson initiated
the 1st air cargo pickup & delivery service in the U.S. In 1958, he joined
Capital Airlines as exec V.P. & board member, and was active in negotiating
merger between Capital & United Airlines.
- Dead Zone ........
as Shenzhen Huangtian Int'l Airport is to be
renamed Shenzhen Baoan Int'l Airport to avoid ominous associations of the
word "Huangtian." Pronunciation of "Huangtian" is similar to that of
"huangquan," the name for Chinese world of the dead. The China Daily reported
many Chinese travelers made detours to Guangzhou & Zhuhai airports to avoid
using the inauspiciously named Huangtian. New "Baoan" means "safety."
Please click below for other sections:
Our Top Story: In The Wake |
Section A: Section: 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
The Cargo Letter Correspondents:
Michael S. McDaniel, Esq., Editor
(Countryman & McDaniel).
Cameron W. Roberts, Esq. (Countryman & McDaniel).
Written from wire stories, the Associated Press,
Reuters, Hong Kong Shipping News Lloyds & other world sources.
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