DLH Lands SN Eyes SAS & AUA

     Deutsche Lufthansa is expanding its influence by acquiring 45 percent of Brussels Airlines' SN Airholding yesterday Monday September 15 paying €65 million euros for the deal.
     By 2011 the German carrier has the option of taking over the other 55 percent for an estimated total price of about €250 million euros.
     While signing the merger contract Lufthansa CEO Wolfgang Mayrhuber emphasized that both carriers' networks and businesses would complement very well.
     Each airline, it is thought, will be able to save fifty or more million euros yearly due to synergies.
     SN Brussels Airlines evolved out of the ashes of bankrupt Belgian state carrier Sabena in 2002 offering regional flights within Europe and long haul traffic out of Brussels, the Belgian capital into Africa
     Last year the airline transported 5.8 million passengers on board of their 49 aircraft posting revenue of €921 million euros and a net profit of 23.1 million.
     SN is no member of any global alliance but has signed a large number of bilateral agreements. Main code-share partner across the North Atlantic is American Airlines.
     Experts however, assume that this agreement will be stopped soon and Star Alliance members United and US Airways will take on American's role.
     According to sources close to Lufthansa, Brussels Airlines will not be integrated but keep its identity and brand name instead and use Brussels airport as main gateway.
     "The carrier will play a similar role, like Lufthansa's subsidiary Swiss Air Lines is quite successfully doing," a German aviation manager predicted.
     This most likely will apply for the cargo business, too. There, Swiss WorldCargo enjoys great autonomy despite the strategic collaboration with LH Cargo. The visible results are increasing profits and volumes.
     Meanwhile, LH is in exclusive talks with Scandinavian SAS for a possible takeover.
     According to local media, the Norwegian government is willing to sell their 14.3 percent of the airline, favoring LH as bidder.
     Neither SAS minority owner Denmark (14.3%) nor Sweden (21.4%) had any comment of possible sell-off of SAS.
     Some analysts are doubtful that a move on SAS would be wise for Lufthansa right now because of the strength of SAS’s unions and also because currently the carrier is struggling with heavy losses.
     Right now also in play is what appears to be a three way bidding for Austrian Airlines (AUA) between Lufthansa, Air France-KLM and Russian airline, Sibir S7.
     Although the outcome of the race is uncertain many observers believe that LH will succeed in the end.
     Worth weighing into all of this is that the aforementioned Lufthansa CEO Herr Mayrhuber is a native Austrian.
     Stay tuned.
Heiner Siegmund

IATA Claims BKK This Week

Pictured in Thailand (from left to right: Khun Kasem Jaliyawatwong, Director Harpers Freight Int'l Air Cargo Ltd. (TAFA Chairman), Ajay Pande, Manager - Cargo Agency Policy, IATA and Khun Voratat Tantimongkolsuk, Deputy Director CTI Logistics Co. Ltd. (TAFA Secretary).

     Still time to get in on a good thing as that 4th IATA Claims and Loss Prevention Conference is being held next week in Bangkok on Wednesday September17 through Friday September 19.
     But to hear Ajay Pande, Manager-Cargo Agency Policy, IATA tell it, keeping the Bangkok agenda has not been without its challenges.
     “Some of our delegates had expressed concern in view of the unsettled political climate in Thailand and especially the protest demonstrations that had taken place in Bangkok.
     “Obviously, safety and security of our delegates is always our prime concern. “We have been monitoring the situation very closely with the help of our office in Bangkok.
     “After careful evaluation and feedback received from our office in Bangkok and the Royal Orchid Sheraton & Towers Hotel Bangkok where the conference is scheduled to take place, as well as the information gathered from various sources including the Tourism Authority of Thailand, we have decided to go ahead with the conference as planned.”
     Response for a conference like this which addresses a 'niche' segment of the air cargo supply chain, has been “overwhelming,” Ajay reports.
     “The numbers of registrations has been increasing every day.
     “We already have more than 125 delegates registered. Attendees will include claims and risk managers from airlines, freight forwarders and ground handlers, attorneys and more.
     “The Thai Airfreight Forwarders' Association (TAFA) is actively supporting this event along with Thai Airways Cargo.
     “About 20 members of TAFA will be attending this event along with their Honorary Chairman and Secretary.
     “I was in Bangkok two weeks ago and visited the TAFA office there.
     “Everyone is full bore to make this gathering valuable and progressive in every way.”
     More: pandea@iata.org
     4th IATA Cargo Claims & Loss Prevention Conference 17-19 September 2008. Bangkok, Thailand. http://www.iata.org/events/cargoclaims2008/index.htm
Geoffrey

Condor Goes leisure

     Ralf-Rainer Auslaender, managing director of leisure Cargo turning 50 earlier this month got a delayed if not hard-won birthday present late last week.
    leisure Cargo has won the contract to provide end to end cargo services for Condor Airlines commencing November 1.
    Under the agreement Leisure Cargo will be responsible for worldwide sales and marketing of the entire belly capacity of the Condor-fleet of 9 B 767-300 ER (extended range), 13 B 757-300 and 10 Airbus A 320 aircraft.
    Under leisure’s “Total Cargo Management” umbrella, reservations, handling agreements, revenue accounting services, processing and settlement of all insurance claims as well as road feeder services in Europe and overseas are provided.
    leisure Cargo estimates additional 21,000 tons that will be generated for Condor on an annual basis bringing the total cargo volume handled by leisure cargo up to about 83,000 tons per year.
    Currently leisure Cargo manages the worldwide capacities of Air Berlin, Air Europe, Aladia, Arkefly, Belair, Future, Iberworld, LTE, LTU, Neos, Niki, Orbest, Santa Barbara, Sky Europe, Thomas Cook Airlines Belgium, TUIfly.com and Volare.
    Just recently leisure Cargo has signed an exclusive marketing agreement with Air Pullmantur, Madrid for weekly B 747-400 belly space enroute Madrid-Cancun complementing network capacity to the Mexican market.

Last flight out at Bush Intercontinental Airport in Houston was Friday at 1400 as Hurricane Ike prepared to slam into Texas, but by Monday, Continental Airlines said that it operated more than 500 of the carrier's normal 600 departures from its gateway hub, where service resumed after a two-day shutdown. American, Jet Blue, Southwest and Air Tran all resumed service Monday afternoon as well . . . Hong Kong International Airport (HKIA) said it handled 311,000 tons in August, down 3.9 percent year-on-year despite growth in transshipments to and from North America and the Mainland. HKIA Chief Executive Officer Stanley Hui said the gateway is dedicated to make the best out of a tough time."The operating environment for the rest of the year will continue to be difficult, we will work with our business partners to equip the airport for long-term growth. “For the 12 months ending August, cargo throughput reached 3.8 million tons, up 5.2 percent on a year earlier.” Looking ahead all signs point up for Asia’s top cargo airport. “In addition to continued enhancements when Cathay Pacific's new cargo terminal is completed in the second half of 2011, Hong Kong International Airport's air cargo throughput handling capacity will rise to 6.6 million tons a year.” . . . Elsewhere Air China reported that it handled 75,038 ton of cargo in August, down 4.1 percent year-on-year . . . Jet Airways launched a flight to Muscat and started three new domestic services from Hyderabad. Jet says it now flies to six destinations in the Gulf—Oman, Kuwait, Bahrain, Doha, Abu Dhabi and Dubai, from five gateways in India.