You are currently
in the Archives section. Please be aware that some information and links
in the archived page may be outdated.
to return to the Archives' main page to see the list of archived articles.
R C H I V E S
E W S
Transport World (ATW) holds its 29th Annual Industry Achievement Awards
in Washington D.C., this week.
The event features a grand reception and
dinner at the Capitol Hilton attended by aviation executives from around
ATW airline of the year is Emirates for
passenger service. That selection comes as little surprise as the high-flying,
Dubai-based airline company has blazed a new trail across the sky, lifting
not only the Middle East but also an entire industry with aggressive expansion
of services, new aircraft orders and a “can do” attitude about everything
Nair, Emirates Cargo Marketing Manager accepts the award for EK, noting
that the people of Emirates appreciate and are greatly honored for the
“Everyone at Emirates thanks ATW for this
great honor. We are even more dedicated to excellence and expansion of
our services in the years ahead. Next April we will spread our wings connecting
Dubai with New York City with A340-500 non-stop flights into John F. Kennedy
Cargo Airline of the Year is Korean Air.
The Seoul-based airline has affected a remarkable turn around during the
past few years.
According to ATW today, Korean Air “has
put together all the pieces needed to be a world-class operation.”
Cargo Web’s Greatest Hits . . . United Cargo said that it plugged
in its Cargo Portal Services deal with Northwest, Air Canada
and Unisys last week and right away within an hour booked some
air cargo from Chicago to Beijing. Better than that, as
last week turned into this week, the hits and booking just keep on coming.
“Outstanding,” said UAL Cargo boss Roger Gibson. God bless ’em
all at UAL for having some good news for a change. The new cargo portal
initiative makes life easier for forwarders every step of the air cargo
experience. Booking and tracking never was easier. Check it out. www.cargoportalservices.com.
Out at LAX, United brings on-line its new $35 million 191,000 square
foot state-of -the-art cargo facility on February 11th (a day before Abraham
Lincoln’s 194th birthday.
The sixteenth president
of the USA was born Feb. 12, 1809). Honestly, January 24th was the ribbon-cutting
party featuring speeches and celebration of the distinctive new cargo transfer
facility with its 31 docks (seven of which are dedicated to UAL top customers
with extra texture all around), 3,600 square feet of automated container
cool-chain perishables, advanced tracking and automated systems all, located
at 5932 West Century Boulevard on the easy in and out main approach road
to Los Angeles International Airport. As this newest landmark for air shippers
was launched, Roger Gibson noted: “Despite these troubled times this new
facility offers our commitment to Los Angeles, its great airport and shippers
everywhere . . . Air Canada said that it lost less money ($428 million)
than any other North American international airline in 2002, but more than
an airline awash in $10 billion dollars of red ink can stomach, having racked
up three consecutive years of losing. Air Canada said that it will sell
its “Jazz” airline subsidiary and take other equally draconian measures
to create savings including spinning off its air cargo business into a separate
unit. Air Canada Cargo will remain part of the airline “for now,” the carrier
said, suggesting that down the road everything might be for sale . . . Meantime
that deal between Delta, Continental and Northwest Airlines
to code-share will surely end up in court as DOT mandates that the
new “Three Amigos” who are trying to stay in business by forming a clear
monopoly (35% of the U.S. market) wherever possible, are being told to limit
their activities to no more than 2,400 flights daily, to code-share in primarily
underserved markets, and leave some unused gates wherever possible, so that
competitors can start up in airport space that they have abandoned. The
events of 9/11, the precipitate drop in business and the continued spike
in fuel costs coupled with the uncertainty of war and other factors have
created a climate where airlines are desperate to find some way to clearer
skies. Desperate times call for desperate measures, as it is said. DOT could
go for an injunction. American or United could ask for relief
in the matter, or wonder of wonders, all the parties could make a deal .
. . Now that the new year has turned over in Hong Kong, two squabbling airlines,
Cathay Pacific and Dragonair (Cathay wants into the
mainland China market, Dragonair wants them to stay out), have been
afforded the month of February to consider their respective positions to
be further presented to the airline governing body in China, called The
Air Transport Licensing Authority by mid-March. Cathay wants Shanghai,
Beijing and Xiamen and has made a strong, even personal case
questioning Dragonair’s ability to effectively serve and hold the exclusive
rights to serve those cities . . . Indian Airlines about to order
43 A320 aircraft in a big bang air show announcement at Aero India
Show in Bangalore. Airbus thinks sub-continent market will
require 222 new aircraft during next 15 years. Boeing has tagged
that number at 290. India remains good, solid two-way market for air cargo
despite what ever else is going on in other parts of the world . . . KLM
grounding one of its B747-300 Combis and if things don’t get better, the
airline may ground another . . . Alaska Air code-shares with Cathay
Pacific beginning February 15th. Hawaiian Air which already serves
Oregon just seems to like it better up there as the official carrier
of Paradise adds another Oregon destination linking up Portland with
Maui from now until April 31st. Flights resume in October. But American
is also adding Maui, moving its Lambert Field St. Louis service to
Chicago-Maui from now on . . . Smart Thinking Ahead...There is an
organization news site worth your time and attention at www.euroexpress.org.
Here you will find an excellent go-to resource for a lot of things because
this group is on the ball confronting what’s hot (and what’s not) in air
cargo today. We especially like the 64 page “Economic Impact Of Express
Carriers-UK which can be downloaded in about 30 seconds but if you are paying
attention might take a couple hours to digest. The upshot is if somebody
is trying to close down your airport at night, then this is better than
good reading. All you have to do is go out and fill in the numbers and reasons
neatly outlined in words and graphs and charts that show just how devastated
the economy would be if your airport were (god forbid)under curfew. As we
all struggle against difficult uncertain times against the reality that
there is no crying as an excuse in air cargo, the smart ones among us will
use this opportunity to better what they do so that when the wheel comes
around again for good times we are ready to not only take, but benefit from
the ride. The European Express Association is thinking about real issues
covering every aspect of the industry today and tomorrow. There is leadership
and benefit for all . . .
Cedar Soar Again
don’t know about you, but having been around this airport life long
enough to recall with horror, the Middle East Airlines aircraft
on the hardstand at Beirut in 1978, blowing up all over the place—today’s
view of a beautiful, milk- white A300-600 in MEA livery carrying
The Cedars of Lebanon airborne on the tail, is an inspiring sight
How far has MEA come, since the airline
under siege with the great Salim Salaam as its leader was the last
visible pride of Lebanon, while its flight kitchens baked Nan bread
to help feed the local population?
MEA Chairman today is Mohammed El-Hout,
who also serves as current president of The Arab Air Carriers Organization
Recently the group held its AGM in
MEA, which lost $80 million in 1997
has come all the way back with a projected profit in 2003, (Mr.
El-Hout notes, Inshallah) plus an all Airbus fleet including A300-600s,
A310-200s and others.
For the first time in 30 years, MEA
is adding to its fleet with new aircraft.
Maybe things will never be the way
that they once were.
That’s the way of progress and the
But the first, great airline of the
Middle East began with three letters, MEA.
It’s nice to see MEA gaining lift
profits continued their slide in the final quarter of 2002, as the Chicago-based
airplane manufacturer just like everybody else post 9/11 is slowly, coming
back. For 2003, Boeing has said that it will produce 280 aircraft. So
far, since 9/11, the company has deferred delivery on more than 500 aircraft.
A couple of bright spots for the company has been their military business
acquired from McDonnell Douglas and elsewhere. On the commercial
side, EVA will order eight B777s, adding to their earlier order
for six of the type. Ryanair caused ear-to-ear smiles wide enough
to stretch from Lake Michigan, where the deal was closed, to Puget
Sound, where the birds will be built. Ryanair ordered 100 B737-800s,
the biggest order ever at one time for the type. Right now Ryanair, based
in Dublin will operate 250 of the B737-800s by 2010, is inching
up on Southwest as biggest operator of the B737. Ryanair picked up Buzz
from KLM for a song last week when the Dutch threw up their hands
at operating a low-cost carrier faced with mounting losses from the parent
airline despite high load factors. Buzz will be downsized and fit into
a growing Ryanair system that includes the previously acquired “Go”
which Ryanair snatched from British Airways last year . . . Delta
Airlines for a Song raising the specter of the big, mighty airline
offering a budget alternative service albeit with a lyrical name, has
left some industry watchers wondering why doesn’t Delta just fix itself
instead of starting something else? . . . A new airport in Uttar Pradesh
is slated for New Delhi that will be located about 40 miles from
India’s capitol as part of the “Taj Special Economic Zone.”
The ‘new’ New Delhi International will appear along the Agra-Noida
Expressway yet to be built between Dhankaur and Jhevar.
You can’t get much newer than that . . . Oman Airlines celebrated
ten years of service last week. The Sultanate also firmed up its air agreements
with Aberbijian. For air cargo, Oman Air operates a variety of
B737-700/800s plus A310s and ATR aircraft offering service to Kaal
and Slalah plus Duai, Abu Dhabi and other regional
destinations. But for air cargo, the big news from Oman is the increased
availability of handling and IT services. Last month OmaneCentre,
Oman Aviation Services (OAS) and Omantel announced the availability
of all airfreight information on line through Oman TradaNet’s (OTN)
iX2 portal. Mr. Abdul Rahman Al Busaidy, CEO of OAS told aircargonews.com:
“This is a major milestone for Oman in beginning their journey to a fully
electronic, logistics infrastructure. Now consignees are able to track
and trace their freight as it moves through Seeb International Airport.
Once the consignee has entered his Airway bill number into the system
(which is on-line to the OAS’ new ground handling system) it will then
give the latest information such as arrival date/time, whether it has
been checked, the data is entered into the system and ready for delivery.
Alternatively organizations will also be able to have the information
messaged directly to them (even to a mobile phone with an SMS message!),
if they have subscribed to the automatic freight status system. The availability
of the freight information so readily provides huge benefits for all concerned,
one example is consignees will be able to judge accurately when to send
vehicles to the airport to collect their freight. OAS is always striving
to improve the service available to our customers and the freight community.
This system will save customers and OAS from wasting valuable time in
checking the status of their cargo movement in and out of the airport.”
. . .
Day is for lovers and for flowers. UPS notes that more than
7 million pounds of fragrant stems will zip through its cool-chain
system to romantics everywhere February 14th. UPS helped position
itself further in the perishables business when it picked up
Miami-based Challenge Air Cargo, a couple years ago and that
carrier’s extensive network in Latin America supported by a
state-of-the-art giant refrigerator disguised as an air cargo
transfer facility at Miami International Airport. But about
the “pounds” weight in a business that likes to measure FTK’s
and tons. Flowers by weight will cube out their transport before
they weigh out. So how many roses does seven million pounds
add up to? Quite a few bunky, and UPS has the juice to get them
delivered. More info: www.UPS.com.
think you have problems? Next month as the Miss Universe Pageant takes
place in Puerto Rico, Miss Israel will be wearing a bullet proof vest.
Ilanit Levy, who is a soldier in the army and hails from Haifa is
taking it all in stride, including a slow boat to China if she wins
the big prize.
It Or Leave It
orders aircraft seem ingly by the gross and makes money hand
over fist (recent numbers de pict Ryanair net up 50% over a
simi lar period a year ago) revealed a bit of what has made
the Southwest Airlines copycat a European phenomenon.
After having gobbled up rival carrier Buzz from a dazed
and confused and money-losing KLM Ryanair told 100 of
the less than 600 people at Buzz, that their jobs were toast.
When the unions balked, Ryanair said that unless the jobs are
given back, then everyone at Buzz is out of work. Ryanair will
utilize the slots and routes inherited in the sale as it sees
fit, with or without Buzz.
Take it or leave it.
Airlines manages to keep its eyes on the prize despite war
worries, sagging economies elsewhere and a general malaise brought
on by a combination of ingredients. In Washington, February
12 to accept the Air Transport World Award as Airline of the
Year (Korean has been named “Cargo Airline of the Year”)
EK can put that impressive trophy into what must amount to a
gymnasium full of accolades from publications and organizations
the world over.
(At EK Sky Cargo headquarters
they got so many plaques and trophies you can’t find the water
At DXB, where EK headquarters,
DNATA is building a new cargo handling facility that
will double the size of the one currently in use just to keep
up with events in the Emirates’ growing air cargo business.
Big 2003 area of service growth
for Emirates Airlines is Australia and China where
carrier adds Sydney and Brisbane and Shanghai
and Hong Kong. Elsewhere EK will fly to Moscow,
Lagos, Nigeria as new destinations while carrier
adds more service to London-Gatwick, Manchester
Aircraft opening up long routes
is A340-500. Flight time from Dubai to Sydney this year will
be 14 hours. Next year when JFK, New York debuts
(April 2003) trip will take 15 hours while SFO hop from
DXB (October 2004) is 17 hours.
Drawing of the new flower center in Dubai.
in the ever shrinking world as airspeed adds potential to better
business opportunities, maybe another day older, (while flying
halfway around the world) will not also mean deeper in debt.
Dubai in every sense of the word is what 21st century business
is all about. Meantime back at the ranch, Dubai International
Airport isn’t waiting around for the world to beat a path
to its runways either. The world already has. Last year (2002)
the gateway was supposed to handle 15 million pax but instead
DXB did 16 million, up an unbelievable 18% above 2001 levels.
But air cargo did even better, jumping by 24% to 785,000,00
tons. The airport authority is building as fast as it can, has
many projects going all at once to satisfy 104 carriers serving
Air cargo gets a new Super Mega
Terminal which will begin opening in 2004, adding in stages
the ability to handle everything (and a bag of chips) that the
world can ship, between now and 2018, up to 3 million tons.
First phase of the new advanced
Super Mega Terminal is slated to be delivered by the end of
2004. Elsewhere, a new flower center will debut by mid-2004
in a distinctive setting located on-airport but facing the Sharjah/Dubai
Talk about an architectural statement!
But better still will be the ambient temperature in this manmade
oasis that will put crisp into the fresh delivery of perishables.
Post World Net (DPWN) has an idea. Although this service
is the direct descendant of the world’s first postal service,
Hapsburg Empire by Franz von Taxis in 1490, all
good things must come to an end.
Faced with opening up the German
home market to all comers in 2007 when DPWN will lose its monopoly,
the company has taken advantage of its current contract and 513
years of experience in these things, to invest in other companies
that will leave it in a positive position in just four years when
DPWN is on its own in the big, bad world of commercial business.
So far armed with more than $5 billion
in acquisitions, DPWN has brought names like Danzas and
its subsidiary AEI based in Connecticut, DHL, Postbank,
and other companies like Italy’s Ascoti, a parcel delivery
company added just earlier this year under the DPWN banner.
Business for 2003 looks good. That’s
what DPWN executives are out saying.
Focus is on systems and stream-
lining, as DPWN moves to simplify its products and price structure.
Little question that know-how is
the link between all the forces that DPWN brings to the fore.
Mail, Logistics, Express and Finance
are all distinct operating forces within DPWN.
But the thing about this company
is that with all of its enterprises in concert once again, as
often happens, history repeats itself.
The world’s first postal service
becomes the first true world-class total transportation and logistics
company of the 21st century.
Somewhere, Franz von Taxis is thinking,
‘that is only right.’