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The Cargo Letter
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Section A: Section: Trade, Financial & Inland News
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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
- OAG Sees Signs of Recovery ........
as the Official Airline Guides
publisher which collects the schedules of more than 850 airlines, says world
markets, particularly the U.S., have yet to fully recover one year after the
Sept. 11 attacks. U.S. market continues to be the hardest hit with the number
of flights to & from the U.S. down 8% & domestic flights down 7%. Worldwide
there were only 4% fewer flights than pre-Sept. 11. In the immediate
aftermath of the attacks the number of flights worldwide fell by 10%. The UK
market is faring better with flights to & from the UK down only 2% and
domestic flights increasing by 3%. On key transatlantic routes there had been
a dramatic reduction in flights. The overall number of flights between
Western Europe & the U.S. is down 13%. Flights from New York's JFK are still
down 15%, while flights from Los Angeles are down 21%.
- Cargo Security Overlooked? ........
as the president of the
Independent Pilots Assn. said that the nation's air cargo operations have
been overlooked in the rush to beef up airport security. Robert Miller, IPA
president, said that stricter security regulations have been applied
disproportionately to passenger airlines, to the possible detriment of cargo
pilots. IPA represents, among others, pilots for UPS. Miller said that there
is no difference between a 757 jet that carries passengers & a 757 jet that
carries cargo and because of that, there should be no difference in the
security surrounding both planes. Mark Giuffre, a UPS spokesman in
Louisville, said UPS bolstered security after Sept. 11, but is fairly
tightlipped about the changes. Discussing security would be
counterproductive, Giuffre said, adding that UPS in some cases exceeds
federal security standards.
- Crying Foul ........
as the Freight Transport Assn. (FTA) in the UK has
come out openly in a harsh criticism of the airlines and its governing body,
the Int'l Air Transport Association (IATA), for altering the conversion rate
in volumetric freight from 6,000 to 5,000 cubic centimeters per kilo for
their cargo tariff. IATA's cargo tariff coordinating committee approved the
proposal last May for implementation in Oct., a decision which would require
exporters & shippers to redesign their packaging to fit the new volume/weight
ratio. The decision also implies a 20% rise in tariff, and this is what irks
the freight association most. The higher charge could net airlines around
US$5Bn per annum in extra revenue. In a statement, the FTA said it was taking
the decision to the competition authorities both in the UK & Europe because
it represented an "unjustified attempt to extort more money from already
hard-pressed British (and other) shippers."
- United Airlines In Big Trouble ........
as it has admitted it may be
forced to file for Chapter 11 bankruptcy protection in the autumn, unless it
reaches huge cost reductions in the next months. UAL stated: "Responding
to changes in the airline industry & feedback on its loan guarantee
application with the Air Transportation Stabilization Board (ATSB).....
United Airlines is changing its business plan to build a stronger, more
cost-competitive airline. As a result, the company is updating its
application with the ATSB to include significantly broader, deeper and
longer-term cost savings. 'The world has changed,' said Jack Creighton,
chairman & CEO. 'Revenue isn't coming back the way the industry expected.
Demand isn't returning, fares remain low, and the industry is grappling with
how to respond." We have given ourselves a very short timeframe - 30 days --
to conclude our discussions with all stakeholders," Creighton said. Thirty
days means an October bankruptcy?
- Sinking US Airways ........
as it will cut 13% of its flights & an
unspecified number of jobs as part of its bankruptcy restructuring, the
airline has told employees. The Arlington-based airline said when it sought
Chapter 11 bankruptcy protection Aug. 11 that job losses & service reductions
were inevitable. Worse, the stricken carrier has now admitted to spending
commitments worth US$6.5Bn, on top of already-known liabilities of
US$10.65Bn. In a filing, the carrier said the "extra commitments" related to
operating leases for aircraft with an estimated value of US$4Bn. Remember
Enron?
http://news.bbc.co.uk/2/hi/business/2204588.stm
- New Delta Deal ........
as it is to join the Continental/Northwest
alliance. The deal would bring together #3 (Delta) with #4 (Northwest) & #5
(Continental). Delta is the leader of the SkyTeam alliance, with Air France.
Continental & Northwest are part of the wings alliance with KLM. Number 1
American Airlines is joining with BA, United & US Airways with Lufthansa.
Instead of the expected four, there will be three big carrier alliances. Stay
tuned.
- Reconfigure Your Cargo ........
as Continental Airlines will reduce
its aircraft types from 9 to 4. Continental, 5th largest in the U.S., flies
to 91 Int'l destinations & 120 domestic. The move follows that of American,
which cut its fleet types from 14 to 7. From its stable, American is removing
its entire Fokker 100 fleet of 74 aircraft, which it considers as small but
costly to operate. In addition, it will fly 11 fewer aircraft out of its
Dallas/Fort Worth hub in Texas, & is deferring deliveries of 35 craft slated
this year. Continental's rescue package looks similar: it has already
grounded 49 aircraft since Sept. 11 & it is looking to remove the 11 MD-80.
- Heads Also Roll At American ........
as it is to cut 7,000 more jobs,
ground aircraft & cancel new deliveries as part of a plan to cut its
operating costs by at least US$1.1Bn a year. Given recent economic & consumer
confidence reports, American will reduce capacity by 9% by November 2002
versus summer 2002. As part of the capacity reduction, American will
accelerate the retirement of its nine TWA 767-300 aircraft to Nov. 2002.
- Air France Goes Private ........
as the government has announced the
launch of the privatization of Air France, a decision that will enable the
airline to face increasingly tough Int'l competition. The airline, currently
owned 56% by the state, offered no other details in its announcement, such as
the amount in equity stake the government intends to sell or a time frame for
its divestment.
- Lan Chile Taps The Cookie Jar ........
as Chile's largest domestic &
Int'l airline has raised US$40M through the pledge of future credit card
ticket sales in the U.S. This operation follows LanChile's first pledge for
US$60M completed in 1999. The certificates have a fixed-rate coupon with a
final maturity of 7 years & a 4 year principal grace period. The transaction,
coordinated by Merrill Lynch, priced at a coupon of 6.96% and was sold to 3
major North American institutional investors. The carrier also plans to sell
it's stamp collection in Oct.
- Varig Teeters On The Verge ........
as it is reported that only tough
measures will be able to save Brazil's leading airline Varig from bankruptcy,
its new chief executive has warned.
- Alpine Air Express Gets A Hand ........
as the provider of regional
air cargo transport, has received cash a reward of US$78,512 from the U.S.
Government under the Air Transportation Safety & System Stabilization Act.
This payment compensates Alpine Air for a portion of losses incurred during
the temporary grounding of its aircraft & interruption of some of its
regularly scheduled flights as a result of the events of Sept. 11, 2001.
- CargoLifter AG Deflates ........
as the bankrupt German airship
builder has laid off 200 workers after the government decided not to help it
raise money for a rescue plan. The court-appointed bankruptcy administrator
had asked the government for credit or loan guarantees worth US$38.9M as part
of a rescue package, but when that was turned down the company was forced to
let the bulk of its remaining staff go. Only 30 people kept their jobs. The
staff originally numbered 450 workers. The government's refusal could signal
the beginning of the company's demise. CargoLifter, in a nod to the past, had
sought to develop modern versions of the Zeppelin to move bulky cargo like
turbines & oil rigs across long distances. The heavily subsidized company
never built a large airship. Sad.
www.cargolifter.com/2002/repository/splash.html
- BA Says No More Qantas ........
as British Airways' stake in Qantas
is set to fall to about 17% following the UK airline's decision not to
participate in the A$800m rights issue announced by the Australian carrier.
Qantas said it had a profit before tax of A$631.0M for the year ended 30 June
2002. Net profit was A$428.0M.
- CAPA Condemns Cathay ........
as at its monthly board meeting this
month, the entire Coalition of Airline Pilots Associations (CAPA),
representing 21,000 U.S.- based pilots, passed a resolution condemning the
behavior of Cathay Pacific Airways management, for their unjust actions
during the ongoing dispute with their pilot union, the Hong Kong Aircrew
Officers Assn. (HKAOA). Specifically, the members of the board pledged to
support the HKAOA in any means they deem necessary to solve this dispute with
Cathay Pacific.
- FedEx & UPS Try Again ........
as they have asked the U.S. Dept. of
Transportation (DOT) to reopen its 2001 probe of the Chicago based DHL
Airways, alleging that DHL's (or: Deutsche Post's) stake in the U.S. cargo
carrier violates a U.S. federal law limiting foreign ownership of U.S.
airlines to 25%. The U.S. express carriers said in separate petitions to the
DOT that they have gathered sufficient evidence from other federal agency
reports and from a presentation made to the Federal Aviation Administration
earlier this year, which show DHL's U.S. operations serve as "conduits for
foreign influence & control."
- UPS Up In Asia ........
as UPS its volume increased 20% from countries
directly linked to its new Intra Asia hub in the Philippines. The
announcement follows other healthy 2nd quarter financial news from the
region, including a 17% gain in Asia export volume, and a 32% rise in export
volume from China. In related news, UPS has rolled out its back guarantees
for U.S. residential shipments in the lower 48 states, partly aimed at
erasing a service gap with FedEx which started such a service 2 years ago.
FYI - UPS is ranked No. 1 in the 2002 Transport Topics 100 listing of the
largest trucking companies in the U.S. & Canada.
- Late To The Overnight Race ........
as United Cargo, a division of
United Airlines, has thrown itself into greater competition with the express
parcel carriers such as UPS & FedEx by introducing a new small package Int'l
express service called Global SP. The service has been immediately introduced
into the U.S. market, where Global SP is offering the highest freight
boarding priority, shortened acceptance & recovery times, and a 100%
guaranteed on-time delivery. United flew more than 2.4 billion cargo-ton
miles in 2001.
- Give Me Liberty Or Give Me Newark ........
as Newark Int'l Airport
should be renamed "Liberty Int'l" to honor the victims of the Sept.11
attacks, the governors of New York & New Jersey said Aug. 20. The chief
executives said to have the power to implement the plan.
- KLM Winter Increase ........
as it will increase its winter air
freight rates by an average of 10% to the U.S. & 5% to all other destinations.
The increase, effective Nov., follows current adjustments of air cargo
capacity & came in response to the consistently high market demand and load
factors of flights ex Europe.
- Singapore Airlines Direct To Sin City ........
as it has launched a
round-trip, 3 x weekly B777-200ER service, Singapore to Las Vegas in Nevada,
with a Hong Kong stop-over. We thought Singapore had good sense.
- Electronic Seal ........
as Encrypta Electronics, a U.K.-based
provider of electronic security tags, & Marco Trailers, which makes air cargo
containers, will jointly market Encrypta's ExpressLok system. The heart is a
container "slam lock" with a seal that automatically generates a 4 digit
random figure that acts as a seal number every time the door is closed. The
number remains unchanged until the door is opened, enabling any unauthorized
opening to be noticed immediately. But where was the container opened?
www.encrypta.com
- Air Marshals Should Call The Cops? ........
as in a report of Aug.
22, "USA Today" said that the U.S. Air Marshal Program has been plagued with
difficulties, to the point where as many as 80 marshals have walked off the
job. The air marshal program is designed to train an elite corps of
undercover law enforcement officers to prevent hijackings & other airborne
crimes, but reduced standards for admittance after Sept. 11 have left many
marshals disillusioned, the paper said. USA Today said that interviews with
more than a dozen current & former air marshals show a growing morale
problem, with one marshal saying that it has become like security guard
training for the mall. The paper said at least 80 marshals have quit & other
marshals are considering a class-action lawsuit over working conditions they
believe put flyers at risk. Marshals are upset that some field offices have
not been able to supply enough ammunition for shooting practice, while others
feel a newly instituted dress code makes them identifiable to terrorists, the
paper reported. Some marshals feel that their schedule are being mishandled
-- with some marshals not flying for weeks & others pulling 12 to 16-hour
shifts, even falling asleep or getting sick on planes. Great news.
- Big Cargo ........
as Boeing has completed final assembly & test
flight of its 1st 747-400ER (extended range) all-cargo jet, which is intended
for Air France. Boeing increased the aircraft's gross takeoff weight by
15,870 kgs to 412,770 kgs.
- Freighter With A Sting ........
as Boeing has nearly finished
modifying a 747-400 freighter to carry the world's 1st airborne laser, with
the aircraft scheduled to leave Kansas later this year to be equipped with
the futuristic weapon. The project is based at Kirtland Air Force Base in
Albuquerque, NM. Costs for the prototype are now projected at US$1.7Bn by
the time the aircraft is finished & testing completed in 2005. In 1996, the
Air Force awarded a $1.1 billion contract to Boeing, TRW & Lockheed Martin to
begin work on a prototype that would detect, track and destroy ballistic
missiles. If the work goes as scheduled, the newest plane in the Air Force's
arsenal could be ready for flight testing by 2004.
- Air Ahab ........
as China Airlines has shipped 6 white whales from
Hong Kong to Kaohsiung on a B747-400F charter, the 1st time this kind of
marine animal has been shipped to Taiwan. They are 2-year-olds, between 2.5 &
3.2 meters in length and weighing between 500 & 700 kilos, from Russia for
the National Museum of Marine, Biology & Aquarium. Shipping of white whales
must comply with techniques & IATA transport regulations set for marine
animals. Seawater is used in special water proof tanks, each 8 inches longer
than the length of the whale to prevent percussion. The heads, fins and tails
of these animals must be coated with sheep oil to protect them from
temperature changes.
- American's Dog Days ........
as the airline has banned aggressive
dogs from its planes after a pit bull escaped from its cage in the cargo hold
of a B757 & chewed up electrical cables. Crew on a July 22 flight from San
Diego to New York said they heard thumping from the cargo hold & discovered
that backup radio & some navigational equipment wasn't working. The airline
said the ban, imposed July 27, was a matter of safety & would apply to all
pit bulls, Rottweilers & Doberman pinschers & any other dog that exhibits
aggressive behavior. The extent of damage caused by the pit bull on the July
22 flight was only evident after ground crews in New York opened the cargo
hold doors & spotted the pit bull running free. The dog had gnawed a hole in
the bulkhead, damaged the cargo hold door & chewed through garden hose-size
electrical cables. American said the plane was out of commission for 9 days
-- a very hefty loss. So far, the airline has not sought reimbursement for
repairs from the dog's owner, who paid US$177.78 to ship the animal.
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
Written from wire stories, the Associated Press,
Reuters, Hong Kong Shipping News Lloyds & other world sources.
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