Vol. 7 No. 139                                              WE COVER THE WORLD                                             Monday December 15, 2008

Etihad Retrenches
Dumps Freighters


     Due to meager results Abu Dhabi-based Etihad Airways has got plans in the drawer to get rid of their freighter fleet in the months to come.
     … Furthermore, internal sources told Air Cargo News Flying Typers that Etihad plans to pull out all wide-body passenger aircraft off routes with less than 4 hours flying distance.
     They will be replaced by narrow-bodied equipment.
     This would apply to the entire traffic to and from the Indian Subcontinent the airline is presently offering.
     The step is seen as a reaction to the tightening financial situation the carrier is increasingly confronted with.
     According to a leading manager, airline boss James Hogan has briefed the top shots of the carrier’s air freight division CrystalCargo.
     His main point seems to have been the “unsatisfactory performance” of the aircraft and their “disappointing contribution” to the carrier’s finances. At Etihad nobody was available for comment.
     If Mr. Hogan’s plans are put into practice to end the freighter era at Etihad, the Middle East airline would be the first carrier in the Gulf region to renounce main deck capacity. Presently, the airline operates a small fleet of leased cargo planes, two of them A300-600F and one MD-11F. The Iceland-registered A300F’s joined the fleet in 2005 while the MD-11F of U.S. operator World Airways is flying for Etihad’s air freight division CrystalCargo since last year.
     The “freighters – no, thank you,” plan would be a severe blow especially for the charter experts of the airline. According to cargo experts they have successfully marketed the spare capacities of the three aircraft up to now. With no single freighter left in the fleet their department might be shot down.
     At this point it is uncertain if Etihad will take over three Airbus 330-200 freighters that are scheduled to be delivered from 2011 on. “They might opt for converting these orders from cargo to passenger aircraft,” supposes a Dubai-based analyst when asked by Air Cargo News FlyingTypers.
√Ever since being established in 2003 Etihad never flew out of the red. Year by year the carrier’s top management kept predicting that profits would be made starting in 2010. Due to the present global crisis however, experts doubt that this financial ambition could be achieved. This might explain why airline owner Abu Dhabi is lately mounting the pressure on Hogan and his crew to save costs and increase earnings. First victim could well be the cargo division.
Heiner Siegmund

Such a deal… That sale to the Italian investment company CAI who bought both Alitalia and Air One with the aim to merge the companies, relieves the Italian government of Silvio Berlusconi an ongoing headache after the current Prime Minister, while trying to get elected earlier this year, promised to get a deal for long suffering AZ done. Price tag for Alitalia € 1 B +. Reportedly Alitalia/ Air One together means loss of 3,200 jobs , so stay tuned. New company is seeking an immediate joint venture with LH and /or AF/KLM, to own +/- 25% of the new combined Italian airline. CAI estimates that Alitalia will be profitable 2010 . . . Sail Away—Opening of direct shipping service begins Monday December 15 and in the general scheme of these things, no small potatoes, as a historic first with the sailing of Evergreen Line's 1,200-TEU Uni-Adroit (Uni-Arise pictured) as the ceremony was mute testimony that the toothpaste is out of the tube and everything changes from now onward across the Taiwan Straits. The Evergreen service, known as the Taiwan-North China or HBT route, will utilize Kaohsiung, one of the world's ten busiest container ports. It is expected that all of Taiwan's international harbors will eventually be involved in a trade that will include virtually all of China's ports . . . Just as former Qantas USA top cargo executive Bruce McCaffrey gets out of the slammer after serving as the fall guy for Qantas Cargo in that price fixing and surcharge scandal of earlier this year comes word that right after they announced merger plans, Qantas Airways and British Airways were fined by an Australian court Friday for their involvement in a price-fixing cartel in the global air freight industry. The Federal Court in Sydney ordered Qantas to pay A$20 million (US$13 million), a fine the airline had agreed to when the Australian Competition and Consumer Commission launched legal action against it in October. The court also fined British Airways A$5 million . . . American Airlines has announced it will begin daily nonstop service between Dallas and Madrid, starting May 1, 2009 via a B767-300 aircraft . . . LAN Airlines SA said that cargo traffic decreased 1.7 percent, compared with the year-earlier period. LAN November, cargo traffic decreased 1.7 percent as capacity rose 5.8 percent. Load factor was reported at 70.6 percent . . . Indian flag airlines are slashing international routes but must endure foreign airlines operating in the country building business as the India carriers use less than 40 percent of their bilateral air service agreement rights . . . Emirates has announced that it will launch a new environmental program on Monday December 15 as it “executes the longest green journey,” aboard its flight from Dubai to San Francisco, now dubbed the world’s first cross-polar green flight. Emirates said that it has worked closely with government agencies in Dubai, Russia, Iceland, Canada and the United States and other countries to plot the most environmentally-sophisticated route and trip possible to help save an estimated 2,000 gallons of fuel and 30,000 pounds of carbon emissions on the 16-hour non-stop service. Nice and easy being green . . . Not only are things warming across the Taiwan Straits, Beijing and Shanghai Customs have said that an era of cooperation continues to build further between the two cities with a new move that allows for declaration and clearance of goods at origin between the two cities. The new service is aimed at building logistics development in the two cities . . . Cathay Pacific Airways and Dragonair moved 131,758 tons of cargo and mail in November, down 15.4 percent from the same month last year . . . Air France-KLM registered a complaint to the European Union over Austria's plans to sell its national airline to German carrier Lufthansa, saying the deal depended on unfair state aid. Air France-KLM said a decision by the Vienna Government to cancel a € 500 million euro (US$659.5 million) loan to Austrian Airlines as part of the sale to Lufthansa had not been on the table when Air France-KLM was itself considering bidding for the airline. "Air France-KLM is convinced that the sale of Austrian Airlines to Lufthansa has not been carried out in the best interests of the parties involved or at a normal market price," Air France-KLM said . . .