Vol. 7 No. 35                                                  WE COVER THE WORLD                                                         Friday April 4, 2008

Joy Takes Wing In China

      Joy Air, a new regional carrier of China, launched in Beijing last week.
      As a joint venture of AVIC I and China Eastern Airlines, Joy Air will be the first Chinese airline that flies only with homemade aircraft, MA60 and ARJ21.
      Since August 2007, General Administration of Civil Aviation of China (CAAC) has enforced stricter restrictions on the establishment of new airlines, attempting to cool down the overheating Chinese civil aviation industry.
      Joy Air is the first newly approved carrier since the government edict took hold underscoring the veracity of its strategy of using homemade aircraft.
      Mr. Li Jiaxiang, (left) Director of CAAC and Vice-Minister of Ministry of Transport, one of China’s newly established "super ministries", said:
      “Joy Air could promote the development of China’s aircraft manufacturing, so CAAC viewed this application for start up with special interest.”
      Joy Air has registered capital of one billion RMB, with AVIC I taking a controlling stake of 60 percent and China Eastern holding the remaining 40 percent.
      The new company will first set a fleet of the propeller-driven aircraft, MA60, and then gradually employ the jet plane ARJ21, both of which are regional aircraft manufactured here by its shareholder AVIC I.
      Mr. Hu Wenming, Vice General Manager of AVIC I and President of Joy Air, told Air Cargo News FlyingTypers at the Joy Air Start Conference:
      “AVIC I has been exporting MA60 in batches, but Joy Air will realize the utilization of MA60 aircraft in China.
      “We plan to build a fleet of 100 aircraft during the next 8 years.
      As to ARJ21, Mr.Hu said:
      “The latest order for ARJ21 comes from Joy Air, which has signed an intent order for ten aircraft, increasing the total number of domestic orders for ARJ21 to181.
      “The largest order for ARJ21 is the 100 aircraft package from the Sino-U.S. joint-ventured regional carrier, Kunpeng Airlines, 50 of which are intent orders.”
      Launched in December 2006, Kunpeng Airlines is a joint venture between Shenzhen Airlines of China and Mesa Air Group of the United States.
      Joy Air also will be based in West China’s Xi'an Xianyang International Airport, which is ideal for regional flights and where the start up will face some determined competitors.
David


     “Mahalo Nui Loa - Aloha Oe,”
     July 26, 1946-March 31, 2008 is what the Aloha Airline website says.
     If you are looking for Aloha Airlines and go to their website today the message above is all that is left, because now despite a long and storied history as the world has heard, Aloha Airlines is gone.
     Sad to report that Aloha Airlines (1947-2008) passenger business may be a dead duck as the world learned last week, but the rest of the story is that Aloha Cargo and its fleet of six B737-200QC freighters are still alive and well.
     “Reports of our death have been greatly exaggerated,” Aloha Cargo assures.
     Aloha Airlines that filed for bankruptcy on March 20, before ceasing air passenger service for good March 31, had proposed selling its cargo division for $13 million to Saltchuk Resources Inc., the Seattle-based owner of Northern Air Cargo, Alaska’s biggest cargo airline.
     But many think that deal was undervalued and some other bidders are expected to up the price before the sale of Aloha Cargo takes place and is finalized April 14.
     So chances are better than good that the name Aloha Cargo will still be a familiar sight in the sky and on airport hardstands around Hawaii for some time to come.
     Aloha Cargo is a fascinating company moving all kinds of consignments including plane loads of fresh baked goods from Oahu all over the place every day aboard its freighters.
     Although these aircraft have not seen passenger duty in some time, they probably could still change from cargo to passenger operations in about an hour, although no one at the carrier is thinking about that now.
     A long tradition of service and being the airline that delivers the bread makes Aloha Cargo an almost revered resource here.
     Every day freighters filled with a variety of fresh Hawaiian baked goods from the ovens of The Lucky Bakery located on Oahu, the big island, move to interisland bakeries and grocery stores for sale the next day.
     As anyone who has thought on the subject knows, wherever you are in the world, often the most memorable comfort food is the local bread.
     Aloha Cargo it can be said has and will continue to carry the stuff of dreams around every night.
     For the record Aloha Cargo moves more than 85 percent of interisland cargo that travels by air.
     Aloha Cargo also provides vital sub service for all the integrators including DHL, FedEx and UPS.
     The Hawaiian interisland market according to most recent figures totals about 47,000 tons of non-mail air cargo transported from Honolulu to the other islands.
     Backhaul from the out islands to Oahu is put at roughly 22,000 tons annually.
     Air mail adds about 20,000 tons a year to the uplift figures.
     Aloha's cargo operation employs nearly 400 people and despite all else has posted steady profits for the past few years.
Geoffrey


     The air cargo business in India has been growing with the boom in the economy. Recently a dozen-odd proposals from various operators received clearance from the Aircraft Acquisition Panel (the government body responsible for aviation related clearances), proof that the sector is going places.
      However, the permission sought by Deccan Cargo, the aircargo unit being set up by Capt. G R Gopinath has been held back.
     According to sources in the aviation ministry, Capt. Gopi's company has failed to obtain the necessary security clearances. In fact, it has also been denied a proposal to import a new plane. Apparently, Deccan
Cargo had sent in a request to the aviation ministry that it wanted to start operations from Bangalore using three A310 freighters and ATR aircraft.
     A tersely worded message from an aviation ministry official said it
all: "Deccan Cargo has not obtained security clearance from the home ministry (the country's internal affairs department) and hence, we may not grant the no-objection certificate (NOC) to the company".
     On the other hand, 12 proposals for other airlines and aircrafts received the green signal from the Aircraft Acquisition Panel.
     While the move meant a stop for Capt. G R Gopinath, he is by no means out. In a recent move, he has come up with a new idea. Now, with virtually no work in his hands, the pioneer of low-cost aviation in the country is looking to play a new game. He believes that there is scope in the country for a strong multi-modal logistics operator.
     According to the former chief of Air Deccan, warehousing and inventory costs in metro and big cities have made business expensive. As a result, many companies had moved to smaller cities, which still do not have a proper logistics set-up.
     What Capt. Gopinath plans to do is set up a company, which would offer its clients a whopping 30 percent cut in their logistics costs by taking over their transportation and the cargo airline would be an integral part of the plans.
     To ensure that this company does not suffer the same fate as his Air Deccan did, Captain Gopinath wants the new company to be an independent one and not part of the Kingfisher-Deccan group.
     Although still in its infancy, the idea apparently came to the former army helicopter pilot— that was what Capt. Gopinath was in his previous profession —when one of his Air Deccan A320 had to make an emergency landing at Kolkata after a bird hit damaged one of the plane's engines. As a price-conscious operator, Air Deccan did not have spares in the city. Result: the engine had to be flown in all the way from Delhi – at least two hours and 1500km away.
      While Air Deccan did not have a spare Airbus to fly in the engine, neither could it be sent by road. It was only five days and many options later that an engine was flown out from Singapore to help the stranded aircraft.
      That mishap taught Captain Gopinath a lesson: get your own act together. Result: the formation of a logistics company with a former UPS Australia hand, Jude Fonseca to head it.
Tirthankar Ghosh


     At a ceremony held in Istanbul today, Turkish Airlines was welcomed as the 20th Star Alliance member airline.
     Star Alliance says it offers 18,000 daily flights serving 965 airports in 162 countries.
     “With Turkish Airlines we have gained a new member carrier with a strong home market which is also one of the fastest growing economies in the world,” Star said.
     Turkish Airlines is one of the fastest growing airlines in Europe (passenger traffic growth of 23.5% during 2007 according to AEA.
     On the cargo front Turkish was to have inducted a third A310-300F last this month (March) with a fourth expected to come on line after conversion to all cargo during December of 2008.
     Atilla Lise, Turkish Airlines’ senior vice president of cargo said the freighters serve Zurich, Tbilisi, Cologne, Paris and London (Gatwick).
     Also included in the direct cargo network are Milan, Dubai and Algiers with Tehran Damascus, Moscow, Madrid and Amman, to soon follow.
     Other cargo freighter destinations connecting Gateway Istanbul include Frankfurt, Almaty, Delhi, Maastricht and Tel Aviv.
     “After the conversions we’ll increase frequencies and cover all the important cargo destinations in the world.
     “We’re going to construct a hub and spoke system for cargo in Istanbul,” Mr. Lise said, adding that Turkish would also then start offering long-haul freighter service with dry or ACMI leased MD-11 or 747s to points like Shanghai, and New York, probably by the 2008 winter schedule.

 

   Cargoitalia, the Italian private freighter airline operating from Milan Malpensa Airport signed a deal with Etihad Airways that from April 6 will provide both Etihad Cargo and Cargoitalia customers freighter capacity access from/to Abu Dhabi and Milan where EY will link with Cargoitalia for freighter destinations in the U.S. and Central America including New York, Chicago, Houston as well as Mexico City.
   Massimo Panagia, Cargoitalia Chief Operating Officer, declared:
   “The agreement is an important step in the execution of our industrial strategy already focused on that region with services to Dubai and also Kuwait City.”
   The new agreement will provide Cargoitalia customers with access to Etihad destinations in the Middle East, East Africa and Far East.


     A380 times two…Finally the first of 58 Airbus A380s destined to join the Emirates Airline fleet rolls out of the paint shop in Hamburg.
     Although there are hundreds and maybe thousands of pictures of A380s in Emirates livery, those aircraft were test aircraft while this one is the real deal destined to join the fleet later this year.
     In a separate announcement EK says that it will go daily Dubai-Rome and Dubai-Milan beginning July 1.
     Beautiful.