The weekly newspaper for air cargo professionals Volume: 19 Issue: 46 21 November 2016
Zubkov to replace the retiring Brittin at TIACA
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he International Air Cargo Association (TIACA) has named Vladimir Zubkov as its new secretary general - replacing Doug Brittin who retires at the end of the year. He will take over in January, with Brittin staying an advisory capacity during the handover. Zubkov has more than 40 years’ experience in the air transport industry, including high-level roles with the International Civil Aviation Organization (ICAO), and, most recently, as vice president of the Volga-Dnepr Group. He has been a member of the TIACA Board since 2011 and is the chairman of the Industry Affairs Committee, as well as a member of the Global Air Cargo Advisory Group (GACAG) and the International Air Transport Association (IATA) Industry Affairs Committee. Zubkov says: “I am honoured to be leading the only organization that represents all parts of the air cargo supply chain. “Building on Doug’s successes with the regulators and key international organizations, we will continue to work closely together with ICAO, IATA, the World Customs Organiza-
tion (WCO), freight forwarder organizations, Airports Council International (ACI), and all other partners, to ensure that the new regulations are implemented in a uniform way across the industry. “We recognise that TIACA needs to grow its engagement in territories where it is under-represented such as the Far and Middle East, Latin America, and Africa, and we will focus on recruiting more members in those areas.
More EU freighter routes for Etihad ETIHAD Cargo has expanded its European freighter network to nine destinations with new routes to Stansted Airport and East Midlands Airport in the UK, and Copenhagen Airport in Denmark. The routes will be served using Boeing 777 Freighters, and joins Amsterdam, Frankfurt (both Main and Hahn), Milan, Brussels and Zaragoza as Etihad Cargo freighter destinations. Etihad also offers bellyhold capacity on a number of routes throughout Europe. Etihad Cargo senior vice president, David
Kerr says: “We have responded to our customers’ demand for freighter capacity out of Europe, and our freighter fleet gives us the flexibility of deploying capacity when and where it is required.” He adds: “These three new services will connect producers with consumers halfway around the world. Manufacturers in the UK and Denmark can now get their merchandise to their customers in the Middle East even faster, in as little as 24 hours in some cases.” Copenhagen Airport chief operations officer, Peter Krogsgaard says: “We are very pleased that Etihad Cargo has set up operations at Copenhagen Airport. Air cargo is of major importance to the Danish business sector. In value terms, more than one third of Danish exports leave the country by air. “Copenhagen is a strong Northern Europe hub for air cargo, and a fast growing international player such as Etihad Cargo will further strengthen our position in the market.”
“We must also continue to push for the modernisation of the industry, championing e-commerce and e-freight penetration and talking convincingly to the World Trade Organization (WTO), the United Nations Conference on Trade and Development (UNCTAD), regional development banks, and relevant regional organizations to form new alliances in order to drive faster and more complete adoption of e-freight.” Before joining Volga-Dnepr in 2008, Zubkov spent over 20 years with ICAO, and has also worked for Aeroflot, and at Moscow Sheremetyevo Airport. TIACA chairman, Sanjiv Edward says: “Vladimir’s wealth of experience in both the private and regulatory sectors will prove invaluable to TIACA, whose mission is to bring the entire global air cargo community together. “We are fortunate to welcome an individual with so much knowledge and passion for the industry to our leadership, and look forward to working with him.” Zubkov was appointed after an evaluation process, by TIACA’s Nominations Committee.
Logitrans kicks-off
Logitrans Istanbul opened for the 10th edition on 16 November with attendance remaining strong despite recent problems in Turkey and the region - running until 18 November. The opening saw welcome speeches by Messe Muenchen member of the management board, Gerhard Gerritzen, and EKO MMI managing director, Ilker Altun. Gerritzen says it is always a “fruitful show,” giving visitors the chance to meet top firms. Altun adds though there were some cancellations, attendance has remained strong.
UK AIRPORTS CONTINUE TO RISE AFTER BREXIT MORE E-COM INVESTMENTS FOR DHL ABC KEEPS ON GROWING AS RUSSIA STABILISES BLACKTHORNE ON THE UP IN MOSCOW
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Emirates warns of bleak global outlook EMIRATES Airline profits fell 75 per cent in the first financial half of 2016 to 786 million dirhams ($214 million), with the chairman warning the bleak global outlook “could be the new norm”. Airline revenue was down one per cent to 41.9 billion dirhams, due to the strength of the US dollar, while it was also hit by currency devaluations and shortages in some African countries. Cargo volumes remained steady at 1.3 million tonnes. Group revenue was up one per cent to 46.5 billion dirhams. Profits were down 64 per cent to 1.3 billion dirhams. Emirates Airline and Group chairman and chief executive, His Highness Sheikh Ahmed bin Saeed Al Maktoum says: “The bleak global economic outlook appears to be the new norm, with no immediate resolution in sight. “Our solid business foundations continue to stand us in good stead. In the first six months of this year, both Emirates and dnata continued to grow.” Dnata’s revenue was up 14 per cent to six billion dirhams and profit fell one per cent to 549 million dirhams. Cargo handled rose 28 per cent to 1.2 million tonnes.
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NEWSWEEK
UK airports continue to rise after Brexit
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eathrow Airport’s cargo volumes have continued strong growth in October while Gatwick Airport’s double-digit recovery continues as it plans more Chinese belly routes. Heathrow’s volumes shot up 6.7 per cent to 141,444 tonnes with particularly strong growth from markets in Latin America and East Asia. The hub says Mexico was up 28 per cent, followed by China at 21 per cent and Brazil at 18 per cent. On a year-to-date basis, Heathrow volumes are up 2.6 per cent to 1.27 million tonnes. Heathrow Airport chief executive officer, John Holland-Kaye (pictured) says government approval for a third runway shows the UK is open for business and expansion at the busiest cargo gateway in the UK will boost UK exporters. Over at Gatwick, cargo is continuing to recover, with volumes growing 22.8 per cent in October to 7,807 tonnes, having welcomed a number of new long-haul routes to countries including Canada, China, Costa Rica, Nigeria, Peru and the US. Chinese trade is expected to grow further following Tianjin Airlines’ announcement it plans a direct route to Xi’an. Elsewhere in the UK, Manchester Airports Group’s airports all had a good month in the UK. Manchester Airport grew 14.5
per cent to 10,963 tonnes boosted by more bellyhold volumes, Stansted Airport was up 2.8 per cent to 22,398 tonnes and East Midlands Airport remained steady at 28,461 tonnes. In Germany at Frankfurt Airport, cargo throughput increased strongly in October by 4.8 per cent to 194,108 tonnes. This represents the second highest cargo volume for an October month at one of Europe’s key airfreight gateways. Frankfurt Airport says that this growth momentum was driven, among other things, by the positive trend currently being experienced in the German industrial sector.
LATAM’s cargo falls
LATAM Airlines Group has returned to profit in the third quarter (Q3) of 2016 - but cargo revenues fell sharply and volumes continue to head the wrong way. The airline group overall made a profit of $4.7 million in Q3, compared to a $113.3 million loss in the same period last year and profit of $14.8 million in the first nine months of 2016 compared to a $203 million loss in 2015. Cargo revenue was down 14.3 per cent in Q3 to $265.6 million and by 19.4 per cent to $801.5 million in the first nine months. Cargo volumes were down nine per cent to 231,000 tonnes in Q3 and by 6.6 per cent to 689,000 between January and September. LATAM says imports from North America and Europe to Brazil have improved though exports to North America were impacted by lower salmon industry production. Load factors fell 1.8 percentage points to 49.6 per cent in Q3.
An-225 flies into Leipzig
LEIPZIG/HALLE Airport welcomed the world’s largest aircraft the Antonov 225 on 10 November, which was transporting around 160 tonnes to Chile. This was the 21st visit for the An-225 to Leipzig and apart from its home base at Kiev Gostomel, there is no other European airport the aircraft it has visited more frequently. PortGround, which specialises in ground handling operations, loaded the 160 tonnes of freight onboard the An-225 at Leipzig before it departed on 12 November – with a stop en route in Iceland. Leipzig/Halle moved 988,240 tonnes of cargo in 2015.
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NEWS WEEK October all rosy for air cargo in Hong Kong
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ong Kong had a strong month in October as air cargo grew significantly for its main carrier and hub. Cathay Pacific Airways Cargo posted an increase in the amount of cargo and mail uplifted in the month compared to October last year. Cathay Pacific and Dragonair combined carried 172,385 tonnes of cargo and mail in October, a year-on-year (YOY) rise of 5.3 per cent on October 2015. The cargo and mail load factor rose by 1.6 percentage points to 68.1 per cent. Capacity, measured in available cargo/mail tonne kilometres, increased YOY by 0.6 per cent, while cargo and mail revenue tonne kilometres (RTKs) increased YOY by 3.2 per cent. In the first ten months of 2016, the tonnage carried rose YOY by 2.2 per cent against a 0.5 per cent increase in capacity and there was an increase of 0.4 per cent in RTKs. Cathay Pacific general manager for cargo sales & marketing, Mark Sutch says: “Overall cargo demand in October was fairly strong and tonnage continued to grow. We had some negative impact on our forecasts during the month from typhoon disruptions and unscheduled aircraft maintenance but overall exports from Europe, Asia and Mainland China were robust.
Bumper month for PACTL
“The team continues to work hard to push up the yield, and the rates are getting back to peak season levels. The new twiceweekly service to Portland, introduced in early November, further strengthened our US network.” Hong Kong International Airport’s (HKIA) tonnage grew yearon-year (YOY) by 7.1 per cent in October as it handled 420,000 tonnes in the month, which it mainly attributes to the robust 13 per cent YOY growth in transshipments. Amongst the key trading regions, traffic to and from Europe and Southeast Asia increased most significantly during the month. In the first 10 months of this year, cargo throughput grew 1.9 per cent to 3.7 million tonnes compared to previous year. On a rolling 12-month basis, HKIA cargo throughput rose by 1.3 per cent to 4.4 million.
WORLDNEWS LUFTHANSA Cargo is continuing its cooperation with start-ups, signing a contract with RocketSpace for participation in the next round of the Logistics Tech Accelerator Programme. Under the programme, developers of digital logistics solutions are offered an insight into the industry to quickly bring ideas to life. US company, RocketSpace is helping young technology companies and innovation drivers bring their ideas and visions of the future to life. THE International Air Cargo Association’s Shippers’ Advisory Council (SAC) has appointed Ericsson’s engagement lead for logistics, Robert Mellin as vice chairman. And Bioforce’s head of exports, Bernhard Baertschi has been appointed as a member of SAC, which was set up earlier this year to give shippers a stronger voice in the supply chain.
SHANGHAI Pudong International Airport Cargo Terminal (PACTL) posted the highest monthly tonnage in the company’s history in October – handling 153,607 tonnes. This was a year-on-year (YOY) growth of 8.9 per cent. PACTL also saw tonnage rise 3.2 per cent to 1,353,969 tonnes between January and October, which is the strongest first ten months result in the cargo terminal’s history. PACTL’s domestic cargo volumes increased by 12.2 per cent YOY to 9,480 tonnes in October, while international cargo grew by 8.7 per cent to 144,127 tonnes that month. Between January and October, domestic cargo volumes rose by two per cent to 86,880 tonnes and international cargo increased by 3.3 per cent to 1,267,089 tonnes. Imports grew by 12.1 per cent to 62,360 tonnes in October and exports rose by 6.9 per cent to 91,247 tonnes compared to the previous year. Overall imports increased by 5.3 per cent to 561,145 tonnes during the first ten months; exports increased by 1.8 per cent to 792,824 tonnes.
CHEP wins SIA Cargo contract SINGAPORE Airlines Cargo (SIA Cargo) has awarded a long-term unit load device (ULD) management agreement to CHEP Aerospace Solutions. CHEP will provide maintenance and repair services in Singapore, Hong Kong, Sydney, Melbourne, Amsterdam, Frankfurt, Brussels, Los Angeles, San Francisco and Dallas, with additional stations likely to be included in the global repair network. CHEP’s repair shops are certified by the aviation authorities of the various regions and comply with the airworthiness approval requirements of CAAS, CASA, EASA and FAA. In addition to the core ULD maintenance and repair services, CHEP will provide storage, control, inventory reporting and delivery of pallet nets, corner ropes, straps and other consumables at some of the appointed stations. CHEP Aerospace Solutions president, Dr. Ludwig Bertsch says: “Our new five-year agreement with Singapore Airlines Cargo further strengthens the maintenance and repair division of our business and increases our participation in the Asia Pacific region where we have a ULD management agreement in place with another major carrier, Cathay Pacific Airways, in addition to MRO agreements with Qantas, Air New Zealand and other airlines.”
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NEWSWEEK
More e-commerce investments made by DHL
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HL eCommerce – part of the Deutsche Post DHL Group – is investing 70 million Euros ($75 million) to strengthen its operations to meet fast-growing demand for e-commerce logistics services in India. Through its subsidiary Blue Dart Express, the investment will go into the expansion of its air hubs in Delhi and Mumbai which are part of its network of 13 air hubs in India. The latest investment supports the growth of B2C e-commerce in India, and is part of the company’s broader plan to aggressively expand across Asia Pacific. Catering to the increasing shipment volumes by B2C e-commerce consumers in India, the air hubs, measuring 5,761 square metres and 4,274 square metres in Delhi and Mumbai, respectively, will be equipped with automation to handle a daily volume of over 500 tonnes.
The automation at both Indian gateways enables Blue Dart to process higher volumes of inbound and outbound shipments in a shorter span of time for distribution to consumers across India by air. Deutsche Post DHL Group eCommerce chief executive officer, Charles Brewer says: “India is a really important market for us and is one of the fastest-growing, with B2C e-commerce
expected to grow from 9.6 billion Euros in 2016 to between 30-40 billion Euros in 2020. “This investment in India, as well as recent investments in the Americas and elsewhere in Asia Pacific this year, showcases our commitment to the e-commerce industry by delivering high quality, reliable logistics solutions to meet the rising demands of e-commerce consumers.” Blue Dart Express managing director, Anil Khanna explains: “The expanded facilities in Delhi and Mumbai, coupled with our flexible and easy-to-use e-fulfillment solutions, will enable e-commerce sellers to distribute their products to over 34,000 domestic locations effectively.” This follows recent e-commerce investments by DHL, adding to the $137 million to increase its e-commerce footprint in the US and 50 per cent expansion in China with new centres in Shenzhen, Shanghai and Hong Kong, while it has started delivery operations in Thailand.
Liverpool facility for GEFCO UK GEFCO UK is to build a new purpose built logistics centre located in Liverpool, in the North West of England. The £10 million facility will provide logistics and supply chain solutions and help optimise supply chains for GEFCO’s customers. GEFCO says it will help it “deliver logistics solutions”, by working alongside manufacturers to design true partnerships that strengthen competitiveness. Additionally, the specialist warehouse it explains will increase volume and open up opportunities for significant business growth. It will open in August 2017, and span 12,000 square metres.
Net profit up by 11% for Agility in Q3
AGILITY has reported a net profit of 15.17 million Kuwaiti Dinar (KD) ($49.8 million) in the third quarter (Q3) of 2016 – an increase of 11 per cent compared to Q3 of 2015. The Kuwaiti freight forwarder’s earnings before interest, taxes, depreciation and amortisation (EBITDA) was 28.90 million KD, a 19 per cent rise on the same period in 2015. Revenues were 312 million KD, a
seven per cent decrease over Q3 last year. Agility says revenue for its Global Integrated Logistics (GIL) division was 228.65 million KD in Q3 2016, an eight per cent decline from Q3 of 2015. The company says GIL continued to see growth in demand for contract logistics in emerging markets and in airfreight the business “grew considerably” in terms of volume with a tougher yield compared to the prior year quarter, resulting in flat net revenue. The main impact to net revenue shortfall remains in the general slowdown in its project logistics business as a result of the slowdown in the oil and gas market. Agility chief executive officer, Tarek Sultan says: “We continue to make gains in the face of a challenging business context: from sluggish economic and trade growth in key regions to political uncertainty in others.”
CEVA grows airfreight volumes in Q3 CEVA Holdings has reported a solid performance in the third quarter (Q3) of this year as it saw air cargo volumes grow by a double-digit figure. The logistics firm’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter ending 30 September was $75 million, up 19 per cent versus Q2 and flat versus the prior year in constant currency. However it remains in the red and its net loss for the period stood at $41 million, but down on the loss of $58 million for the same quarter last year.
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In Q3 its Freight Management division’s EBITDA was up 20.8 per cent versus the prior year in constant currency, driven by volume growth and for its Contract Logistics division EBITDA growth was 15.2 per cent versus Q2 through margin increase. Revenue was $1,679 million in Q3, up 0.9 per cent in constant currency, which CEVA says was driven by strong volume growth. In Q3, air volumes rose 10.6 per cent against a soft market, which CEVA says can be attributed to a mix of new business and an increasing share of existing customers in numerous sectors.
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CARGO GATEWAY MOSCOW
ABC keeps on growing as Russia stabilises
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irBridgeCargo (ABC) Airlines has continued record-breaking growth, while Russian airport volumes have stabilised following the slump caused by economic sanctions, Volga-Dnepr Group senior vice president, sales & marketing, Robert van de Weg (below) tells Air Cargo Week (ACW). Cargo volumes at ABC, part of the Volga-Dnepr Group, grew 29 per cent in the first 10 months of 2016 to 498,177 tonnes, and by 30 per cent in October to 57,608 tonnes. In comparison, ABC handled 483,000
tonnes in the whole of 2015. Van de Weg says ABC continued to grow while the airports struggled with economic sanctions and weakness of the Russian rouble, with imports seeing a sharp fall in 2015, though they are stabilising in 2016. He says: “Things are starting to get stronger, the worst is behind us.” ABC’s hub is at Moscow’s Sheremetyevo International Airport, and it has an extensive network throughout Russia, connecting with cities such as Yekaterinburg, Norilsk, Novosibirsk and Khabarovsk. It has also been very busy expanding its international network with another weekly flight to Singapore, Houston – Abu Dhabi services, and new flights to the likes of Phnom Penh, Seattle, London and Oslo. Van de Weg says Moscow’s location is a great advantage, telling ACW: “The main advantage of Moscow is it is on the way between Europe
and Asia, it is a very efficient gateway and a relatively short route.” Commenting on the Heathrow Airport route, which started on 3 November, van de Weg says it expands on the existing concept of connections via Moscow. The Thursday and Saturday service offers 100 tonnes of capacity and relieves pressure, particularly on routes to Asia. Van de Weg comments: “Heathrow expands on an existing concept offering connections via our Moscow hub. “The UK service could become more inter-
esting depending on what happens politically. Brexit could be an additional advantage as moving via Europe could be more complicated.” The weakness of the British pound could also help exports as they will be more competitive. Expansion is not only about quantity, ABC is also working on quality. Van de Weg says “Moscow is a logical hub to connect with our markets, it has brilliant facilities for connectivity. The focus is on improving quality for special cargo. We have just received IATA CEIV Pharma certification - an important milestone.”
Sheremetyevo recovers, but Domodedovo falls
MOSCOW’s two main gateways have had mixed results, with Sheremetyevo International Airport growing but Domodedovo Airport struggled, according to Airports Council International (ACI) Europe. In the first nine months of 2016, Sheremetyevo grew 21 per cent to 125,462 tonnes while Domodedovo declined by 13.5 per cent to 83,629 tonnes in the same time period. In September, Sheremetyevo’s volumes were up 129.5 per cent to 17,714 tonnes and Domodedovo was down 26 per cent to 10,103 tonnes. Domodedovo Terminal Cargo has a handling capacity of 140,000 tonnes a year with facilities for special cargo including two strong rooms for valuable, vulnerable
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and pharmaceutical cargo with CCTV and security staff. The terminal also has storage and handling for dangerous cargo, and warehouses have cooling and freezing facilities for perishables. In June, the Moscow region authorities approved the Northern Terminal Complex to modernise Sheremetyevo’s facilities. At the time, Moscow region government chairman, German Elyanushkin explained: “Moscow air hub development is one of the priority projects under the Governor Andrey Vorobyov’s individual control. “The Sheremetyevo modernization will make the main country’s airport one of the most powerful passenger and cargo hubs in the world. Of course, it will also help the Moscow Region’s sustainable development too.”
CARGO GATEWAY MOSCOW
Blackthorne on the up but still below pre-sanction levels
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rade with Russia is recovering but is still below pre-sanction levels, Blackthorne International Transport managing director, Gary O’Grady (pictured below) tells Air Cargo Week (ACW). Blackthorne, which specialises in transporting all sorts of cargo to Russia by air, sea and road, has three offices, one in Colnbrook, near London’s Heathrow Airport, another in Switzerland’s Zurich Airport, and one in Moscow. The company was hit by the economic sanctions against Russia, though things are slowly improving. O’Grady says: “December 2015 was probably the lowest point since the start of the sanctions so it has been a steady recovery since then but still nowhere near pre-sanctions levels.” He adds: “We’re probably trading at 70 per cent of the pre-sanction levels to Russia but overall as a company we are about double what we
Zhukovsky gears up for cargo
were doing as we have had to enter new markets.” O’Grady is expecting some improvements but comments: “I expect further increases on the UK to Russia leg but no more than 80 per cent of pre-sanctions levels.” One thing that O’Grady believes could help growth is AirBridgeCargo (ABC) Airlines launching twice-weekly flights from Heathrow to Moscow. The ABC Boeing 747 Freighter flights started on 3 November, operating on Thursdays and Saturdays offering over 100 tonnes of cargo capacity to its hub at Sheremetyevo International Airport. The route is expected to cater for exports destined for locations in South East Asia. Most of Blackthorne’s business is destined for Moscow, though O’Grady says: “80 per cent of the cargo is destined for Moscow so it clearly makes sense to have a base here although the costs in other cities would be less than half that in Moscow but there’s no work there.” Russia is a challenging place to do business in the view of O’Grady, who explains to ACW: “Russia is an awful place to do business but a great place to make money.”
ZHUKOVSKY Airport is gearing itself up for cargo flights as it welcomes its first airlines. The airport, developed on the Ramenskoye aerodrome, was opened on 30 May 2016 in a ceremony attended by government representatives including chairman of the government, Dmitry Medvedev. On 12 September, Belavia Airline became the first carrier to use start flights, with services to Minsk in Belarus. Since opening, UVT Aero started the first domestic flight to Kazan, and Ural Airlines launched its first international flight, travelling from Zhukovsky to Osh in the Kyrgyz Republic. Ural Airlines is also planning services to Tajikistan with flights to Dushanbe and Khujand. The airport, 40 kilometres Southeast of central Moscow, has signed an agreement with two cargo airlines, Aviastar-TU and Sky Gates Airlines. As part of its development plans, construction will start on a new cargo terminal and the second stage will start this year. According to its website, the warehouse will be expanded with the capacity of a new transportation logistics complex handling more than 40,000 tonnes a year. The freight terminal will have a processing and automated system of storage and accounting of all types of cargo, accelerated processing and customs registration for express cargo, office and industrial premises and a freight yard for 70 low bed trucks. Zhukovsky will have a capacity of 100,000 tonnes a year and the freight complex will be expanded to eight hectares by 2019.
Aeroflot’s cargo doubles AEROFLOT is recovering after difficult times with cargo volumes more than doubling in September. In September, total cargo was up 169.5 per cent to 16,594 tonnes, with most of the growth coming from international traffic, up 202.2 per cent to 8,738 tonnes. Domestic volumes also saw strong growth, up 139.3 per cent to 7,656 tonnes. Between January and September, cargo and mail volumes were up 23.6 per cent to 118,867 tonnes. International volumes grew 11.1 per cent to 61,109 tonnes and domestic cargo and mail shot up 40.2 per cent to 57,758 tonnes. Aeroflot has increased its fleet by 21 aircraft, bringing the total to 188. Six Boeing 737-800s, two Boeing 777300ERs, six SSJ100s, nine Airbus A320s and 10 Airbus A321s joined the fleet while five Airbus A319s, one A320 and six A321s were phased out.
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ITALY
Records keep on getting broken at Milan Malpensa
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ilan Malpensa Airport continues its upward trajectory and volumes surged 15 per cent in October to 53,000 tonnes - a new monthly record. The airport handles 56 per cent of Italy’s air cargo, and saw imports shoot up 22 per cent, while exports grew 13 per cent compared to October 2015. Malpensa says Asian traffic grew by 21 per cent, with the Middle East up 15 per cent, and Africa was also strong, up 12.7 per cent. Year-to-date volumes are up by 6.4 per cent on 2015. The gateway says the main growth driver is freighter carriers who are consolidating their investments adding more capacity and attracting cargo volumes from road feeder services (RFS), along with the positive trend of export flows together with a recovery of imports especially from Asia. Business is also being driven by a more positive and stable economic situation and the strong commitment made by the airport in improving services and facilities while growth is also fuelled by the expansion of FedEx and DHL. Top cargo sectors are made in Italy products (clothes, garments, shoes, automotives), but import flows, in particular semi-finished
products from Asia and perishables (fresh food like cheese and ham, flowers and vegetables) are on the up. The luxury market continues to be strong and exports of Italian high-end manufactured goods like fashion, jewelry, sports cars, wine, cheese, ham and perfume are in high demand, as the thirst for these products in emerging markets such as China and India grows. Pharma traffic is also growing boosted by investments in facil-
ities and processes made by cargo handling companies ALHA and BCUBE air cargo, which has lead to more confidence placed by the Italian pharma industry in Malpensa and considerable growth of traffic during the current year, mainly in export flows. The airport is targeting more growth in 2017 as says the Italian market is in good shape and expects Cargolux, Nippon Cargo, and AirBridgeCargo Airlines to consolidate their operations. Growth will also come through bellyhold volumes due to more widebody services and Qatar Airways Cargo/Meridiana and Alitalia/Etihad have announced cargo development plans. The hub says hopefully this additional capacity will help to bring back to increasing amounts of Italian cargo daily trucked by RFS to and from the major European hubs. This all comes as infrastructure will expand and capacity will double from 600,000 tonnes to one million as FedEx and DHL ramp up operations, while second-line warehouses for freight forwarder and e-commerce firms will further drive volumes. The gateway is positive about the new European Customs Code (from 1 May 2017) as says it will further improve ordinary Customs clearance and feels a better image about Italian import processes inside the airport will certainly boost air cargo flows. Processes will also improve next year at Malpensa as it puts into operation a new ICT system and the ‘Malpensa Cargo Smart City’ as it will be known, will go into service from January 2017. Malpensa certainly looks set to keep on growing and continue to be Southern Europe’s busiest airfreight hub.
Consolidation for Cargolux
CARGOLUX Italia is the largest Italian all-cargo carrier and has steadily grown its presence and network in recent years, which has helped it through a tough year. 2016 has been a difficult with negative market headwinds impacting performance, especially on certain Asian routes such as Hong Kong and other Chinese destinations. Cargolux Italia chief executive officer, Pierandrea Galli says on the export side, it has seen strong demand on sectors to Japan, where it operates three times a week. On the three weekly flights to China and a twice-weekly service to New York it is also seeing high demand, while on the import side, the strongest market is Hong Kong, where it operates four weekly flights, as well as China. Asia is its core trade lane and the strongest demand is on lanes into the region. It is taking full use of its dual-hub system in Zhengzhou, as well as in Hong Kong for imports. As for the Italian marketplace, Galli says in the first three quarters of 2016, the Italian markets have not shown much growth, but with strong support from customers it has increased its market share. Galli also notes: “The main products out of Italy are luxury goods. However, we are steadily increasing our cool chain and pharma shipments, especially from Central and Southern Italy. It is a challenging market though, as we face competition from belly carriers.” In 2017, Cargolux Italia is planning a consolidation of its current operation, but he explains there is “always room for growth” and it is “always open” when new opportunities arise. Galli says: “We are concentrating on our current product portfolio and creating the best possible value for our customers within our current network. We still see room to increase our sales activities in the markets we serve. “In the coming years, the main opportunities are in increasing our presence in China, through our hub at Zhengzhou. There is also growth potential in Japan where we are currently limited by bilateral agreements between Italy and Japan. But Cargolux Italia is a flexible airline and we are ready to take on any opportunity that we see in the market or from our customers. “The main challenge, naturally, is the growing competition in Milan Malpensa, where other carriers are increasing their frequencies.”
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ITALY
BCUBE focusing on specialist cargo sectors
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espite challenging economic conditions Italian air cargo handler BCUBE air cargo continues to invest - notably in assets and high-specialised personnel, which it says has helped it deliver positive results this year. Following interest of some airlines to increase freighter frequencies to Milan Malpensa Airport, BCUBE expects to improve its performance especially through its ‘diamond’ services for art, its pharma centre and in other specialist cargo handling sectors. The cargo handler says it is aiming to to compete with the other top European players, by delivering excellent services and innovative solutions with the goal to “stimulate further growth of our customers volumes”. In BCUBE’s view, the future of the air cargo is strongly linked with highly specialised products and it expects a further rise in high-specialised cargo volumes and it says following a number of specialist requests from the market, high technology solutions and qualified processes are the “key” to increasing volumes and
improving timings and the quality of the services it provides. The Italian airfreight handler also explains: “The Italian luxury goods slice of market represents another interesting part of the export flow. Products like Italian fashion or top class foods and beverages are worldwide known and highly requested. Why not take the chance.” BCUBE is IATA CEIV Pharma certified and pharmaceuticals are an important sector for growth and its future and through the opening of new Pharma Centres in Malpensa and Rome Fiumicino Airport, it feels it is now an important qualified referent for the Italian pharma sector. The handler says results have come easily due to opening of these new facilities and by attaining CEIV and its “pharma pioneering adventure” has been translated in a big increase of pharma volumes moved through both Malpensa and Fiumicino, instead of been diverted to other departure points. And BCUBE says the growth of Malpensa is driving its own expansion, as airlines are willing to increase their volumes from
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the gateway, and also due to its new MXP Pharma Center, adding: “We will also have to keep our dynamic and innovative approach by building more ‘tailored’ services and new facilities capable to attract shipments producing higher yields in a period when air cargo rates are generally going down.” There are various challenges and opportunities for BCUBE and with new openings to other ground handlers at Malpensa, it has seen the chance to increase the airport’s results globally and hopes the freighter sector will benefit from this development. BCUBE notes: “BCUBE is always with eyes wide open to the market request and our attention to our customers’ needs will positively bring to new contacts. At same time we strongly wish to further cement our partnership with existing customer airlines that have been always loyal to us, representing our biggest asset. “Our company vision is to take the airport handling to the highest level. We continuously enhance our processes as well as our infrastructures with dedicated departments that are able to bring to reality any innovation could be required from the market.”
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WORLD ROUTES MAB targets China growth Belly routes keep on coming
M
AB Kargo started two new freighter routes to Eastern China as it looks to grow in the region. The cargo arm of Malaysian Airlines begun operating a twice weekly service to Guanghzou Baiyun International Airport from Kuala Lumpur International Airport from 8 November. MAB runs an Airbus A330 on the route, which will offer 60 tonnes of cargo capacity and says it is launching the route to tap into the increasing movements between Guangzhou, China’s third busiest hub and Kuala Lumpur. The A330 service is set to see carry mainly perishables, especially seafood as well as general cargo. MAB Kargo had already expanded its Chinese network with two freighter flights a week to Chongqing Jiangbei International Airport, starting services from 30 October – which it says will mainly carry high value electronic goods. MAB Kargo is restructuring its freighter fleet and is exiting use of the Boeing 747 Freighter and is concentrating solely on operating the Airbus A330 Freighter.
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Alongside Guanghzou and Chongqing, its freighter network also includes Hong Kong International Airport, Shanghai Pudong International Airport and Zhengzhou XinZheng International Airport. Meanwhile, Air Canada Cargo has added Frankfurt to its freighter network, with Boeing 767-300 Freighter services from Toronto due to start on 19 November. The weekly 767-300F, operated by Cargojet through a wet lease agreement with Air Canada, are in addition to the 28 weekly widebody flights Air Canada operates between Canada and Frankfurt. Air Canada Cargo launched dedicated freighter routes in June, operating 767-300s between Toronto and Atlanta, Dallas, Bogota, Lima and Mexico City. Turkish Cargo has strengthened its Asia presence with the launch of a weekly freighter service to Chennai in India from 9 November. This adds to a new route recently launched to Colombo in Sri Lanka, also on a weekly rotation. The carrier now operates 64 freighter destinations by its 13 freighters.
BANGLADESH carrier US Bangla Airlines has started bellyhold flights from Dhaka to Muscat and Chittagong to Muscat. The four weekly flights are operated with two Boeing 737- 800s aircraft and US Bangla is eventually looking to run daily flights to Muscat international Airport, which welcomed the first service on 12 November. Alaska Airlines has started new flights between Portland in Oregon and Newark in New Jersey using a Boeing 737. This is the airline’s first nonstop flight between Portland and the New York City area. Earlier this year, the Federal Aviation Administration approved Alaska’s request to
increasing its existing Tianjin and Chongqing services from Gatwick to three services a week. Gatwick will also soon welcome new long-haul bellyhold routes including British Airways to Cape Town, Fort Lauderdale and Oakland San Francisco, and also Aeroflot to Moscow. Ethiopian Airlines is to increase bellyhold flight frequency to Cape Town to 10 times a week beginning from 1 December this year and will use a Boeing 787 on the route. The carrier’s chief commercial officer, Busera Awel says: “Serving Africa is our primary commitment as a Pan-African carri-
operate four additional daily flights to Newark, while the carrier’s new service between San Diego and Newark starts later this month, and a new service between Newark and San Jose in California and a third daily flight between Newark and Seattle begin in spring 2017. Tianjin Airlines has announced a new bellyhold connection to Xi’an from London’s Gatwick Airport, and the carrier will also be
er, and increasing services to Cape Town is part of this commitment.” Ethiopian currently flies to three cities in South Africa - Durban, Johannesburg and Cape Town. ANA will launch direct flights between Tokyo’s Narita Airport and Mexico City International Airport from 15 February 2017. ANA becomes the first airline to operate direct flights daily between Japan and Mexico.
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