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The Cargo Letter
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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 World Air Briefs
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World Air Cargo Slump ....... as Airports Council Int'l says the
global economic slowdown & the Sept. 11 terrorist attacks helped force
worldwide air cargo volumes down 29% in Sept. A recent ACI report showed
double-digit percentage drops in cargo volume in N. America (down 29%), Latin
America & the Caribbean (down 16%), Europe (down 15%) & Asia/Pacific (down
12%). The Mideast volumes dropped 7% while Africa volumes were flat. ACI's
report showed that Memphis Int'l Airport (home of FedEx) recorded a 12%
increase in cargo volume for Sept. with 235,000 metric tons handled. Other
gainers in cargo volumes for Sept. were Shanghai at a growth rate of 13%,
Dubai at 5%, Guangzhou at 4%, & Beijing at 1%.
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Only Two ...... as only Alaska & Southwest show profits as U.S.
carriers for the year. In another sign of the times, monthly production of
Airbus's A320 plane will now fall to 18 from 26 planes.
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But Some "Good News" From History ....... as European airline traffic
suffered less from the Bin Laden attack than from the immediate effect of the
Gulf War, according to data of the Assn. of European Airlines. As we all
know, the Int'l air cargo industry has grown mightily since the Gulf War 10
years ago. There's light ahead.
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North Atlantic Battle ......... as American Airlines is seeking
antitrust immunity for a marketing alliance with British Airways, which will
lead to a battle with 3 competitors who see American to gain dominance in the
lucrative transatlantic market. Delta, Continental & Northwest have, in turn,
mobilized members of Congress & governors to try to block the alliance. The
dispute has become part of a larger fight for survival in the aftermath of
the Sept. 11 attacks. Delta Air Lines filed a complaint on Dec. 12 with the
European Commission (EC) urging it to open a formal proceeding pursuant to
Article 85 EC in regard to the proposed BA/AA alliance. The BA/AA alliance is
already being investigated by the UK Office of Fair Trading (OFT) & the EC is
cooperating with the OFT investigation. More, US Airways has asked the U.S.
Dept. of Transportation to continue with its plans to increase competition at
London's Heathrow Airport in anticipation of an "open skies" agreement
between the U.S. & U.K. US Airways wants DOT, in its decisions on Heathrow
service, to ensure enhanced competition by requiring carriers in both the
proposed American Airlines/British Airways alliance & the United/British
Midland alliance to give up takeoff & landing slots from their "vast
holdings" so that new carriers can enter the market. "In granting antitrust
immunity to AA-BA & UA-BD, the Department would be sponsoring the creation of
a duopoly at slot and facility constrained Heathrow with each alliance having
the ability to coordinate prices & schedules," US Airways said.
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But Antitrust For Delta Air Lines ......... as it has received word
from the U.S. Dept. of Transportation (DOT) of a proposal to grant the
airline antitrust immunity for marketing agreements that would allow Delta &
its European SkyTeam partners to pursue a global airline alliance. With
antitrust immunity, Delta & its European SkyTeam partners will have the
opportunity to discuss and agree on routes & schedules operated as well as
coordinate marketing and sales programs, pricing & revenue management
initiatives, service standards & procedures, advertising & media programs,
and cargo operations. With antitrust immunity, Delta says the 4 carriers will
pursue a coordinated approach to schedules, routes & network planning to
improve flight connections between Delta's U.S. services & destinations
beyond the hubs operated by Delta's European partners in Paris, Milan, Rome &
Prague. Delta expects final DOT approval for the alliance to be issued in
Jan, 2002.
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Just As U.S. Lines Received Congressional Help .......... the European
Commission said Dec. 21 it has approved aid measures introduced by Austria,
Denmark, France, Germany & Spain to compensate their airlines against the
costs that followed the terrorist attacks in the U.S. The EC recently
published guidelines on compensation for airlines, saying that some types of
aid, including aid for insurance to compensate for damage caused by natural
calamities or other extraordinary events, could be granted to the air
transport industry by way of exception. Airlines were left without insurance
following the attacks in the U.S, the EC said. The EC already approved
emergency compensation by the governments of the UK, Luxembourg, Portugal &
Belgium.
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Cargo Week ....... as Int'l Air Transport Assn. (IATA) will hold
another Global Cargo Week & Dangerous Goods by Air conference & exhibition
from March 11 to 15 in Paris. Industry decision makers at the event, to be
held at the Sofitel Forum Rive Gauche, will discuss issues facing carriers,
cargo agents, freight forwarders, service providers & governments. More
information about the event.
www.cargoweek.com
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Alitalia Follows The Pack ......... as Italy's flagship carrier has
decided to cut 3,500 jobs, or 15% of its work force, as part of its plan to
contain losses after the Sept. 11 terrorist attacks. The number of its
passengers in Oct. decreased by 31.5%, compared with same month last year.
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Continental-KLM Codeshare ....... as the agreement goes into effect on
Jan. 15, 2002, subject to government approval.
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Junk For British Airways ........... as Standard & Poor's, one of the
key credit ratings for British Airways, has relegated its senior unsecured
debt to junk status for the 1st time, which will add to the borrowing costs
of the airline, already one of the most heavily indebted of the European
carriers. Meanwhile, BA considers another 10,000 layoffs as traffic is down
for a 10th month in a row.
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Room Rage ........ as the entire 15-member board of Thai Airways
resigned this month for the 3rd time this year as the struggling national
carrier attempts to restructure in a bid to regain profitability. Conflict
behind the scenes at board level is believed to be responsible for this
latest blow to Thai Airways' restructuring initiatives. Thai Airways is
currently 93% owned by the Thai government with ownership divided between
competing departments.
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It Won't Be Called Swissair ......... as it is likely a new Int'l
carrier will be formed out of the remnants of bankrupt Swissair & Crossair,
the Crossair CEO Andre Dose told attendees of a special meeting for
shareholders held in Basle recently. After a 6 hour meeting a new board of
directors was chosen by a steering committee that in turn had been picked by
banks with controlling stakes in the defunct flier. A US$1.6B capital
increase was also agreed upon in the session. Mr. Dose said that one of the
most important next steps would be to brand the new airline, as the price
that the SAirGroup was asking for the use of the Swissair name was too high,
according to ATW Online. By mid-Jan. Crossair's LX designator is likely to
have replaced the "SR" code on short & medium haul flights and is the front
runner for long haul flights that revert to Crossair at the end of March.
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Suing The Dead .......... as the continuing saga surrounding the
collapse of both Sabena & Swissair has predictably intensified with an
announcement by both the Belgian government & Sabena of their intentions to
sue the lapsed Swiss national carrier. Sabena's demise on Nov. 7 is Belgium's
worst corporate failure ever. Both the airline & the Belgian government lay
the blame squarely on the shoulders of Swissair, now also in a state of
collapse, which they say reneged on a promised infusion of capital. This
said, litigation against Swissair may have limited benefits, now that the
carrier has filed for bankruptcy protection.
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DAT Airline May Not Fly ........as DAT, intended successor airline to
bankrupt Belgian carrier Sabena, looks bad after a group of potential
investors withdrew their business plan for Sabena Interservices Center, the
defunct airline's in-house bank, which had been scheduled to provide 100
million euro. Worse, a commercial court refused to extend bankruptcy
protection to the former in-house bank.
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Why Yes -- And Thanks! ......... as Air New Zealand shareholders voted
overwhelmingly to support the government's US$430M bailout of the national
carrier -- after hearing a blunt warning from John Palmer, the new chairman,
that ANZ would go bankrupt if they rejected it.
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Korea Springs Back ........ as the FAA has announced that South Korea
now complies with Int'l safety standards set by the Int'l Civil Aviation
Organization (ICAO) & has given the country a Category 1 rating following a
reassessment of the country's civil aviation authority this month. South
Korea previously did not comply with ICAO standards and was rated Category 2
in Aug. -- leading to a drop in volume.
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No Worries Mate ........ as collapsed Australian airline Ansett is
reported to be losing up to US$500,000 per week, according to a report in the
China Daily. Despite the losses, Ansett is expected to remain viable until
Jan. 31 next year when it is due to be taken over by the Tesna consortium
headed by Solomon Lew & Lindsay Fox. Australian government said firm that it
will not be providing a bail-out package.
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Island Wedding? ......... as Hawaii's two inter-island airlines --
Aloha Airlines & Hawaiian Airlines -- are rumored to announce plans for
merger.
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Message In A Bottle? ....... as James Crane, CEO of EGL Inc., sold one
million shares of common stock in the company last month. He still holds
approximately 22.5% of the company. Crane commented "Personal obligations
have necessitated that I liquidate a portion -- less than 10% -- of my EGL
stock".
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The Flight To China ........ as statistics released by the Civil
Aviation Administration of China (CAAC) show that some 57 foreign airlines
from 45 countries now offer flights to 20 Chinese cities. The CAAC figures
also show that 11 Chinese airlines offer flights to a total of 62 cities in
32 countries while China has opened 145 Int'l air routes & 45 regional routes
to Hong Kong or Macau. We've come a long way from Pan Am's China Clipper of
the 1930's.
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Los Angeles Int'l Airport Dips With The Times ......... air cargo
statistics for Oct. show an 18.24% drop in air cargo tonnage compared to Oct.
2000. Air cargo (mail & freight) at LAX was down from 205,045 tons in Oct.
2000 to 167,643 tons this year. Much of this decline was attributed to a
55.90% decline in mail from 20,478 tons in Oct. 2000 to 9,031 tons last
month. Airfreight was down 14.06% from 184,567 tons in Oct. 2000 to 158,612
tons last month. Air cargo (mail & freight) from Jan. through Oct. this year
declined 12.36% to 1,636,598 tons from 1,867,356 tons during the same period
last year. Total air cargo at LAX was already down 10.05% to 1,329,115 tons
during the same period this year from 1,477,550 during the same period last
year.
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FedEx Follows UPS ........ as it will now join its rival in increasing
rates an average of 3.5% from shipments within the U.S., & for U.S. export
shipments. This increase includes a US$1.35 per-package residential delivery
charge for non-freight shipments within the U.S. to private residences, an
increase in the courier pickup charge to US$4 from US$3, and an adjustment to
the special handling fees for dangerous goods, but excludes the current fuel
surcharge. FedEx Ground also will increase rates an average of 3.5%. Upping
the bid, Airborne Express will begin phasing in general rate increases of 4%.
for its domestic shipping products.
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Many Happy Returns ......... as the new "UPS Electronic Return Label"
enables businesses to e-mail shipping labels directly to customers who need
to return holiday merchandise. When customers receive the E-mail
authorization, they simply click on a link to retrieve the label, print it on
a regular sheet of paper & send the package back via UPS. The E-mail also
gives the customer a link to listings & maps of the nearest UPS drop-off
location; a tracking number to check the status of the package, & a receipt.
At 75-cents per transaction, the "Electronic Return Label" is seen as a
low-cost service for merchants using the UPS system. Additional information
on UPS Returns Services is available at:
www.UPS.com
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UPS Signature Tracking .......... as the company has a new web
solution through the use of digital proof of delivery provided within minutes
of delivery. When customers track a package using "Signature Tracking", they
will see UPS proof of delivery, full delivery address information, reference
numbers, cash on delivery information & the recipient's signature. The
service has a PIN-controlled security feature. UPS has also launched it's
"Worldwide Express Plus", which offers guaranteed delivery by as early as
08:00 hrs the next day. This service will be expanded to include 8 new Asian
origin countries and delivery destinations beyond the US, Canada & Europe.
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Atlas Air Hubs ......... as it has added three new hubs to its Int'l
cargo transportation network. The new hubs are Liege in eastern Belgium,
Anchorage, & Miami.
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We'll Take Those Big Ones ........ as the Lufthansa Supervisory Board
has approved an Executive Board proposal that orders be placed for 15 Airbus
A 380-800 superjumbos, scheduled for delivery in the 3rd quarter of 2007.
Extreme size of the A380 allows per-seat costs to be reduced by between 15%
to 20%.
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Boeing 717 Will Continue ....... as the company has made a business
decision to continue production of the 717 -- the leading 100-passenger
airplane (ex DC-9). However, due to reduced near-term demand following the
events of Sept. 11, the program will go forward with a lower production rate.
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OAK Sets Record ......... as Oakland Int'l Airport repaved its
10,000-foot main runway in just 126 hours this Aug. -- believed to be the
fastest runway repaving in history. The runway was closed completely for the
US$21.5M project, which included placing approximately 105,000 tons of
asphalt & installing 664 runway lights. The airport remained open, with
aircraft taking off from a temporary runway adjacent to the main runway, and
landing on runways at the airport's North Field, typically used by corporate
jets. As an added incentive, the contract included a bonus of US$125,000 for
every 12-hour period that the work was completed ahead of schedule; and a
penalty of US$125,000 for every 12-hour period if the schedule slipped. The
project came in right on time.
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U.S. Car Chase T.V. Again Legal ....... as the FAA has just restored
general aviation access to airspace in 30 major metropolitan areas. The
restrictions in Class B airspace have been in place around the busiest
airports in the country since the Sept.11 terrorist attacks. In 27
metropolitan locations, the current restrictions will end & return to normal
Visual Flight Rules (VFR) operations. In addition, in Washington, New York &
Boston, increased access to airspace will be provided, with some local
restrictions around specific sensitive areas. In Washington, for example, a
15-mile restricted area will be established with special accommodation for 3
small airports in that area. Also, news helicopters, traffic watch, banner
towing, blimp & commercial sightseeing VFR flights will be allowed to resume
except where local restrictions apply. Accordingly, U.S. television will once
again have free access to video police car chases in metropolitan areas -- a
major U.S. staple.
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Car Chases On Boeing T.V.? ........... as it has been granted a
license by the Federal Communications Commission (FCC) that will enable
passengers on airplanes to transmit & receive broadband data in flight.
Receipt of the landmark 2-way license, the 1st of its kind in the broadband
satellite services industry, will enable operators of commercial airliners &
executive jets, to offer real-time, high-speed Internet & intranet access,
T.V. & e-mail above U.S. territory & waters. Sorry, the new service is only
coming to Lufthansa's long-haul fleet beginning with a prototype installation
in late 2002 or early 2003.
www.boeing.com/connexion/
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"Sometimes They Get Lost" ..........as a shipment of a powerful
prescription painkiller is missing & Emery Air says the shipment could have
been lost or stolen. Nine cases of OxyContin, valued at about US$800,000,
were to be shipped to a company in S. New Jersey, Nov. 22, said Emery Air.
The drugs never arrived. "We move a lot of boxes and unfortunately sometimes
they get lost," Emery said with remarkable understatement. OxyContin is a
slow-release narcotic painkiller. One pill is designed to last 12 hours, but
abusers crush OxyContin & snort or inject it, producing a quick, heroin-like
high.
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Bigger Hit ......... as armed robbers snatched US$9.5M & an
undisclosed amount of jewelry & diamonds at South Africa's main airport.
Between 5 & 8 armed robbers surprised 3 security guards inspecting cargo from
Amsterdam at Johannesburg Int'l Airport on Dec. 27. South Africa suffers
rates of armed robbery, murder and rape many times higher than those in
Europe & the U.S. Diamond smuggling is rife in South Africa & neighboring
Botswana. Illicit diamond traders in some cases use carrier pigeons to
smuggle diamonds by strapping uncut diamonds to the bodies of pigeons & then
fly them out of the country. South Africa had to change its laws in 1998 to
allow all pigeons in its NW province diamond producing area to be shot at on
sight to stem the practice.
Please click below for other sections:
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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