Vol. 10  No. 16                    WORLD'S MOST LOVED AIR CARGO PUBLICATION SINCE 2001                   Tuesday February 22, 2011



     LAN Airlines’ intended purchase of Brazil’s leading carrier, TAM, suffered a severe setback after the Santiago-based anti-trust tribunal Defensa de la Libre Competencia, TDLC, decided to open a probe into the merger.
     The Chilean competition watchdogs’ move was provoked by national consumer groups who fear sharp rising air fares and cargo rates in the event that LAN take over TAM, forming LATAM Airlines.
     If so, critics object, the newly built carrier could influence the passenger and air freight biz in Chile, Peru and Brazil, hike prices and eliminate smaller competitors as a result of its extraordinary market power.
     In the meantime, TDLC has officially suspended the airline project until the upcoming investigation is finalized. According to local media, this could substantially delay the fusion of both carriers and the building of LATAM Airlines. Originally, this step was expected for completion by next summer. Some South American analysts, however, would not exclude that the plans could fail altogether if the TDLC should ultimately follow the consumer’s arguments and decide against the transaction.
     LAN announced it would be evaluating its options in light of the unprecedented decision issued by Chile’s anti-trust authorities. Which options might be pursued remain unsaid in the carrier’s statement.
Heiner Siegmund/Flossie


Some Africa Flights Grounded

     All flights to Tanzania have been cancelled after last week’s explosions at a Dar es Salaam army base forced closure of Julius Nyerere (named after Tanzania’s first President) International Airport.
     According to “The East African” datelined Monday, February 21, “aircraft belonging to Swissair, Egypt Airways, South African Airways, Precision Air Services and Fly540 were grounded at the international airport pending further information from the military as the city sky was lit up by flying missiles.”
     In Nairobi, Kenya, which was the scene of an air cargo show this week, air traffic has picked up exponentially as flights were diverted from Dar es Salaam.
     Elsewhere in Nairobi, the big transportation news this week is that state-owned Kenya Railways Corporation is seeking a partner to manage the Nairobi railway system.
     A London-based operator has bid for the contract after government said it would put up $100 million in improvements.
     Kenya needs better rail service to attract international investment and business, as daily traffic in Nairobi slows almost to a standstill, greatly hampering movement of commerce and the general population.


American Cargo Fast Break

     For Dave Brooks, American Airlines Cargo President, 2011 has begun with exciting new service from New York’s John F. Kennedy International Airport to Tokyo via close-in Haneda, with daily B777 service launched last Friday and a return that touched down at JFK yesterday, Sunday, February 20.
     “American cargo is on a growth track again with new international services and the strength of our premium products,” Mr. Brooks said.
     “We continue to add more customer enhancements and self-help options at AA Cargo.com that both simplify E-rates, tariffs and status reports, etc.
     “New Service! Shanghai to LAX, JFK to Budapest, ORD to Helsinki and our newly started JFK to Haneda highlight 2011 at AA Cargo.
     “A big challenge in 2011will be dealing with continued security knee-jerk reactions and various markets where unrest upsets shipments and at times paralyzes foreign mail flow.
     “We look forward to TSA working closer with the entire air cargo industry to rationalize in 2011.
     “On the upside, products that really need air speed service, like pharma, are getting a lot of attention.
     “However the pharma market needs more passive solutions, as the active containers will be too expensive for emerging products.
     “Our new B777 flight to Japan adds important daily trade lane opportunities for shippers via JFK, with connections throughout the U.S. and Latin America, including Sao Paulo, Buenos Aires, Rio de Janeiro and Santiago.
     “In the USA, connections from JFK to Miami, Philadelphia and Boston will see increased activity as the new service settles in.”
     “The new American flights to Japan are well placed to support various commodities including pharmaceuticals, digital cameras and video recorders from HND to JFK, as well as auto parts and construction equipment connecting to Sao Paulo, Brazil,” Brooks said.
     American also said it expects to move outbound U.S.A. consignments of flowers from South America and fish from the U.S. east coast aboard its new trans-Pacific service.
     “In 2011 high-tech shipments will ebb and flow depending on consumer demand and new product introductions.
     “Of course, the vegetable and flower guys will always be there if the rate is right.
     “American will also continue to develop the most neglected, underserved market that we have spent quality time with this year: human remains.”
Geoffrey Arend/Flossie


ATC Opens Africa

     ATC President Ingo Zimmer reports that ATC Aviation Services, with their head office in Frankfurt, has entered the African market.
     “Our expansion into South Africa has been realized in February 2011, as ATC has acquired The Cargo Connection (Pty) based in Johannesburg.
     “The Cargo Connection (Pty) is today a fully-owned member of the ATC Aviation Group.
     “Cargo Connection Managing Director Gerd von Mansberg will remain at his post and as member of the board.
     “We expect the transition to be seamless and win–win for everybody.
     “ATC’s customers get valuable access to South Africa and Cargo Connection’s network now that the company is part of ATC and has gone global.
     “Additionally, Gerd von Mansberg brings considerable value to the shipping proposition all around because of his long-held airfreight experience in the African Market.
     “The Cargo Connection (Pty) currently represents airlines such as Air Cargo Germany, Airlink, Air Zimbabwe, Coyne, Air Namibia and Egypt Air.
     “ATC Aviation Services Group operates global offices in Europe (Austria, Belgium, Germany, Switzerland, Spain and The Netherlands), India and South Africa.”
     For more information, please visit the website: www.atc-aviation.com.


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Delta Cargo Says
Haneda Twice Is Nice

     One day after AA goes JFK/HND, Delta Cargo doubles down and opens two major U.S. gateways into HND, with daily B747-400 lifts from Detroit (DTW) and Los Angeles (LAX) starting Saturday, February 19.
     "Cargo space is sold out for the first 10 days in both directions and customers are looking forward to the HND experience," reports Neel Shah, DL Senior Vice President and Chief Cargo Officer.
     “HND makes for a perfect entry point for Japan origin freight.
     “Perishable forwarders in particular will find the LAX departure very convenient because of the proximity HND has to the end users in Tokyo,” Mr. Shah noted.


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