|
The Cargo Letter
|
|
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
- The September Numbers ........
as passenger traffic on the Int'l
scheduled services of IATA airlines declined 17% in Sept. compared to Sept.
2000, and as a result showed no growth in the 1st 9 months of the year.
Carriers were unable to adjust their seat supply quickly enough, as the
passenger load factor fell from 78% in August to 69% in Sept. During the 1st
9 months of 2001, total traffic (passengers plus freight) fell by nearly 3%,
against a total capacity increase of 2%. Carriers most severely affected were
those registered in North America, whose passenger & freight traffic fell
more than 30% in Sept. European & Far Eastern carriers experienced a 12% fall
in passenger traffic overall, although carriers with a high U.S. component in
their services fared worse.
- UK Volume Still Off ........
as the British Airports Authority has
reported that cargo tonnage at its 7 UK airports was down 15.2% for Oct., but
this represented a slight improvement on the decline recorded in the 2nd half
of Sept. European scheduled traffic was down 11.2% compared with Oct. last
year.
- A300 Watch ........
as U.S. & French aviation regulators ordered tail
inspections on Nov. 16 of certain Airbus A300 aircraft after the tail fin
broke off a like-model American Airlines plane just before it crashed on Nov,
12, killing up to 265 people. The U.S. inspection order, covering roughly 90
Airbus A300-600 & 45 A310 planes, requires carriers, including American,
FedEx & UPS, to perform visual checks only. The 135 planes are not grounded &
the inspections are relatively simple and quick to do. On Nov. 19 France's
civil aviation authority called for an inspection of all Airbus A300-600 &
A310 aircraft in service as a precaution. Airlines operate 407 such planes in
service worldwide.
- Aviation Security Act Signed ........
as the Nov. 16 action by the U.S.
Congress was signed into law by President Buch Nov. 19 & includes the
following: 1.] Federalizing the security screening workforce under a new
transportation security agency; 2.] Screening 100% of all checked luggage,
cargo & mail and matching the luggage to passengers on the plane until full
screening can be implemented; 3.] Forcing all personnel who have access to
the aircraft to go through a security screening process; 4.] Screening all
catering supplies & making the packaging tamper-proof; 5. ] Increasing
training for attendants & pilots; 6.] Increasing the federal sky marshal
program; and 7.] Reinforcing all cockpit doors. The transportation security
agency should be operational in 6 months & could include up to 30,000
employees.
- Guess Whose Stopping By? ........
as a bill moving through the U.S.
Senate would force all airlines flying to the U.S. to turn over their
passenger manifests so officials can check them against lists of suspected
terrorists. Sen. Bryon Dorgan, D-N.D., got the provision placed on a
Labor-HHS-Education spending bill on Oct. 31. Most airlines voluntarily share
their passenger lists with federal officials. But some Int'l carriers -
including airlines from Canada, the Bahamas, Ireland, Pakistan, Egypt, Saudi
Arabia, Kuwait & Jordan - refuse to give their passenger lists to the U.S.
Customs before flying to the U.S.
- Cargo Security -- Weakest Link ........
as at the Air Cargo Americas'
conference in Miami this month, Michael Dugan, president of Long Beach,
Calif. based Western Overseas Corp., said air cargo is not getting the
attention it needs & unfortunately the best plans may not be implemented
until the country suffers more losses to terrorist acts. Air cargo "remains
vulnerable, and it has the reputation of being the weakest link in our
security system," Dugan said. "Our cargo now becomes the prime target (for
terrorists), and we should now protect it -- I'm not so sure that the
government is the answer for everything," Dugan said. Dugan offered some
suggestions to air forwarders at the meeting to improve air cargo security:
- Limit access to people in cargo areas.
- Continue enforcement of the FAA's "known shipper" rules.
- Pursue electronic screening of all cargo.
- Increase education of employees about security requirements.
- SkyGuard ........
as the National Air Transportation Assn. has
introduced new technology that will provide background & biometric
information of cargo handlers at American airports. Displaying what he called
a "smart card," NATA president James Coyne recently said the technology developed by the NATA & technology leaders for the "SkyGuard"
program will provide extensive background information on cargo handlers,
while confirming the cardholder's true identity through biometrics.
- FedEx Crew Safety Requests ........
as due to the serious risk to
both aircrews & ramp personnel, the FedEx Pilots Assn. has recommended to
Federal Express management that the following procedures be implemented
immediately:
- Test all aircraft filtration systems & cockpits every 24 hours for anthrax
spores. Positive test results should trigger immediate CDC action & testing
of aircrews and other related personnel who may have been exposed;
- Create tracking mechanisms, protocols, & procedures for affected personnel,
equipment, and aircraft that are exposed to actual or suspected
contamination, in both domestic & Int'l locations -- procedures must include
immediate notification procedures & should include access to immediate
treatment & other medical resources;
- Bag & seal all Express Mail & USPS bags, prior to containerizing, in thick,
clear mylar bags;
- Seal cargo containers as much as possible to minimize the air circulating
around any possibly contaminated packages that could introduce pathogens into
the cockpit through the air conditioning/pressurization system; and
- Make anthrax vaccinations available to FedEx personnel on a voluntary
basis.
- Agony Meter ........
as Delta Air Lines now provides estimated airport
wait times at its Web site. The new online feature gives customers the
opportunity to check estimated peak & off-peak wait times for curbside
check-in, ticket counters, & security check points at approximately 115
airports, including those in the U.S, San Juan, St. Thomas, Aruba, Bermuda,
Nassau, & Grand Cayman.
www.delta.com.
- Sold Together ........
as Air France, Delta & Korean Air have
announced the opening of the "U.S. Cargo Sales Joint Venture" world
headquarters in Atlanta. U.S. Cargo Sales Joint Venture will offer customers
the benefits of a centralized reservation & service center, comprehensive
route network & common product line. It will have branches in 14 locations
throughout the U.S., and regional offices in Atlanta, New York, Chicago &
L.A. -- equally owned by Air France, Delta & Korean Air. It is scheduled to
begin full operations in Jan. 2002.
- Bump Alarm Urged For More Freighters ........
as the FAA has proposed
a rule that cargo airlines install electronic collision avoidance systems to
reduce the risk of midair collisions. The rule, proposed Nov. 1, uses
aircraft weight & performance to determine which must have the system. The
FAA already requires all passenger aircraft with more than 10 seats --
including passenger-cargo "combi" aircraft -- to have Traffic Alert &
Collision Avoidance System (TCAS) equipment. The FAA rule would require
turbine-powered cargo planes of more than 30,000 pounds maximum certified
takeoff weight to have TCAS II or equivalent equipment & an appropriate Mode
S transponder.
- That's Real Confidence! ........
as the Emirates has placed a massive
order for Boeing & Airbus aircraft, its largest-ever valued at US$15B. In a
dramatic gesture underlining its confidence in the entire long-term future of
Dubai & air travel in general, the United Arab Emirates-based carrier will be
acquiring 25 Boeing 777s, 22 Airbus A380s, 8 Airbus A340-600s & 3 A330s by
the end of the decade. Emirates' initial order, signed at Britain's
Farnborough Air Show in July 2000 as a Letter of Intent, was for 7 A380s,
making it the world's 1st airline to commit to the giant A380 superjumbo. It
has now added a further 15 A380s for a total fleet of 22 firm orders, valued
at US$7B plus 10 options, 25 new Boeing 777s in two versions valued at US$6.6B
, 8 A340-600s valued at US$1B, & 3 A330s valued at US$415M. Emirates plans to
boost its total fleet to 100 by the year 2010. Emirates chairman, Sheikh
Ahmed, said: "The timing of this order, hard on the heels of recent events,
is no coincidence. "We are determined not to allow present difficulties to
deflect our resolve. Short term, airlines have seen their business dip. Long
term, air travel remains firmly on course to double in the next 15 years."
Emirates has announced a 1st half profit of US$46M, up 2.2% compared with
last year.
- ValuJet Convictions Reversed ........
as the 11th U.S. Circuit Court
of Appeals in Atlanta has overturned 8 convictions against SabreTech for
transporting hazardous materials that were blamed for the deadly 1996 ValuJet
crash in the Everglades. The court found that federal law in place at the
time of the crash did not support the company's conviction. "This was a
tragic accident," Judge Joel Dubina wrote. "However, the record is clear that
SabreTech & its employees did not intend to kill these people." SabreTech was
convicted in 1999 for recklessly supplying the hazardous oxygen generators
blamed for the cargo hold fire that caused the Miami-to-Atlanta flight to
crash on May 11, 1996, killing 110 people. It was the 1st time an aviation
company had been convicted in a U.S. air disaster. SabreTech was fined
US$11M.
- Number 56 Now Open ........
as U.S. & Sri Lanka have concluded an
open-skies aviation agreement that, when fully implemented, will remove all
restriction on air services to, from & beyond each other's territory.
Agreement is the 4th reached during the Bush administration, following
Poland, Oman & France -- the U.S.s' 56th agreement overall. Open-skies
agreements eliminate restrictions on how often carriers can fly, the type of
plane they can use, & the prices they can charge.
- Atlas Concludes Buy ........
as it has acquired Polar Air Cargo from
GE Capital Aviation Services (GECAS). Under the terms of the agreement
announced in July, the stated purchase price of US$84M was effectively
reduced by US$30M through certain financing commitments as well as
restructuring of aircraft leases. About half of the purchase price has been
financed through a 2 year term loan. The transaction was completed following
receipt of exemption authority for such purchase from the U.S. Dept. of
Transportation. Atlas Air Worldwide Holdings (AAWH) expects to continue full
utilization of Polar's current operating fleet of 17 B747 freighters through
the remainder of this year's peak season period. Thereafter, AAWH intends to
resize Polar's fleet, focusing on its fleet of 4 B747-400s & a yet to be
determined number of B747-200s, operating in scheduled service. Up to 8
B747-100s currently in Polar's fleet will be permanently parked. Polar was
recently awarded valuable 5th freedom rights between Hong Kong & Seoul, South
Korea -- schedule will be announced shortly. In addition, Polar Air Cargo
holds route authority & 16 weekly slots at Tokyo's Narita airport. Tokyo is
the world's 4th largest freight market, and operating rights there are highly
sought after & severely restricted in number.
- Delta Air Lines Says No ........
as it filed comments with the U.S.
Dept. of Transportation on Nov. 2 urging that the proposed British Airways -
American Airlines alliance be rejected unless other airlines are allowed
significant new access to London-Heathrow Airport. According to Delta,
elimination of competition between American Airlines & British Airways, the 2
largest U.S.-London competitors, will result in serious harm for competition
and consumers because Delta & other carriers are locked out of
London-Heathrow Airport. More, Delta filed objections with the U.K. Office
of Fair Trading (OFT). The European Commission is also conducting an
investigation & may open a formal procedure under Article 85 of the EC
Treaty.
- Project Phoenix ........
as the move to establish a new Swiss airline
continues, after the fall of SwissAir.. Website by Swiss carrier Crossair.
www.project-phoenix.ch.
- Waking The Dead ........
as the plan to start a new Belgian airline on
the grave of Sabena -- now defunct after 77 years -- is stumbling on
difficulties, as investors seem reluctant. Guy Verhofstadt, prime minister of
Belgium, might have been too early with his announcement of private
investment of a total amount of 155 million Euro. The banks Fortis, Dexia,
KBC & BBL (ING) have confirmed participation, but did not mention an amount.
Sabena was the 1st major flagship carrier to go under in the wake of the
Sept. 11 attacks. Sabena was granted creditor protection early last month
after collapsed Swiss co-parent Swissair failed on a pledge to inject badly
needed capital into the Belgian airline.
- Becoming Dead ........
as Canada 3000, the country's 2nd biggest
airline, abruptly ceased operations on Nov. 9, less than 24 hours after
securing bankruptcy protection -- 5,000 now unemployed. The company stated:
"Canada 3000 Airlines regrets to advise that it will cease flying operation
effective Nov. 9th, 2001. We are therefore unable to transport passengers to
their destinations, & recommend that they seek alternative methods of travel.
We very much regret this action & wish to thank our passengers for their
patronage in the past."
- Down, Down Under ........
adding to Australian aviation woes, Qantas
Airways will reduce staff positions by between 1,500 & 2,000 as a result of
the sharp & continuing deterioration in the Int'l aviation market. All
flights to New York will be withdrawn from Nov. 25. Meanwhile, Australian
budget airline Virgin Blue said Nov. 19 it intends to make a formal bid for
rival carrier Ansett, but only after it has looked at the company's books.
Once Australia's 2nd largest airline, Ansett was put into voluntary
administration (bankruptcy) in mid-Sept. & later grounded under the weight of
unsustainable debt, throwing most of its 16,000 staff out of work. With
government support, Ansett's administrators managed to get some planes back
into the air & is now completing plans to sell the airline. Two weeks ago the
administrators named a consortium of Australian businessman, Lindsay Fox &
Solomon Lew as the preferred bidders. Fox, who owns a national transport
company, and Lew, who once ran Australia's largest retail company, had offere
d US$940M for Ansett Mark II, a scaled down version of the airline.
- Ups At UPS ........
as it will raise its ground shipping rate 3.5%
effective Jan. 7. Overnight & 2 day express services will jump 4%, while
Int'l shipping will increase 3.9%. The fee for air express deliveries to
homes will be US$1.10 higher than the charge for taking those packages to
businesses. UPS also is retaining a 1.25% temporary fuel surcharge it began
charging in August 2000.
- Bracing At UPS ........
as it expects to deliver more than 325
million packages globally during this year's holiday peak season between
Thanksgiving & Christmas. The annual surge in holiday volume is forecast to
crest this year on Tues., Dec. 18. On that peak day, UPS anticipates
delivering more than 18 million air & ground packages globally, or more than
200 every second. That is more than a 35% surge over average daily volumes of
about 13 million deliveries a day.
- Bigger Triple 7 Coming ........
as Boeing engineers have released
50% of the design for the 1st of its two Longer-Range 777s -- the 777-300ER
(extended range) airplane. The two new 777s, the 777-200LR (longer range) &
777-300ER will extend the range of the 777 family, while providing airlines
with the ability to increase revenue. For example, an airline flying a
777-300 with 365 passengers & 2,000 pounds of cargo from L.A. to Tokyo could
carry an additional 43,500 pounds (19,700 kilograms) of cargo on the new
777-300ER. On longer routes currently served by the 777-200ER (extended
range), such as from Paris to L.A., the 777-300ER can fly that same route
carrying an additional 78 passengers & 4,000 pounds of cargo. On even longer
flights, such as from New York to Hong Kong, the 777-200LR can carry 22 more
passengers & 35,000 pounds more cargo than the 777-200ER.
- Quick Change Artist ........
as Boeing delivered its 1st
Next-Generation 737-700 Convertible with Quick Change options on Nov. 2. to a
private corporation which wishes to remain unidentified. The 737-700
Convertible, or 737-700C, is the 1st member of the new Boeing 737 family to
be offered in both an all-passenger or all-cargo layout. The Quick Change
option is simply a 737-700C with pallet-mounted seats -- reducing conversion
time from passenger to freighter configuration, & vice-versa, to less than an
hour. The 737-700C, a simple derivative of the new 737 passenger airplane,
has strengthened wings identical to those on the Boeing Business Jet (BBJ).
The BBJ is a modified 737-700. The 737-700C also has a new main-deck cargo
door & new cargo handling system. The 737-700C Quick Change can carry up to
149 passengers. In the cargo configuration it can carry up to 41,420 pounds
(18,780 kgs) of cargo on 8 pallets. The ceiling, sidewalls & overhead bins
remain in the interior while the airplane is configured for cargo.
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.
[an error occurred while processing this directive]