Cathay to order new cargo aircraft
Jun-30-2011 By : agxadmin
Cathay Pacific is planning to order about 15 freighter aircraft to meet cargo demand beyond 2013 and the first multibillion-dollar contract could be confirmed as early as next month. Nick Rhodes, Cathay Pacific Cargo General Manager, said the airline was in negotiations with Airbus and Boeing along with engine manufacturers for its freighter requirements between 2013 and 2018. He said three types of freighter, the Airbus A330, Boeing 777 and Boeing 747-8, were being considered, with the A330s and 777s destined for the airline’s medium-haul cargo network. Rhodes said that based on the projected global growth in cargo volume of around 6% to 7% a year for the next few years, the airline would need to raise capacity by between two and three freighters a year. This growth, coupled with the delivery of 10 new Boeing 747-8s and the retirement of its older Boeing 747-400 freighters, meant Cathay Pacific “had plenty of lift to 2012; beyond that we are looking for additional aircraft”, Rhodes said. Overall, there would be an estimated need for 12 to 15 freighters, including possible additional 747-8s to strengthen long-haul routes to North America and Central and South America and European services. The 747-8s can carry up to 130 tons, while the 777s have a 100-ton capacity and the A330s can carry about 65 tons, the South China Morning Post reports.
Hactl stays bullish on cargo volumes
By : agxadmin
Hong Kong Air Cargo Terminals (Hactl) said its tonnage throughput for the year would likely end only about 5% below a “bumper” 2010, despite a heavy fall in cargo volume in the past two months. Air cargo throughput was also expected to fall year-on-year this month, Managing Director Mark Whitehead said, although he expected a strong turnaround during the second half of the year would mitigate the impact. Hong Kong’s largest cargo handler processed 227,050 tons of cargo in May, down 12% from a year ago. In April the year-on-year decrease was 9.3%. While Hactl handled more than 70% of the total air cargo that went through the city’s airport, Whitehead, who has been in the top job for nine months, said that his priorities were to maintain the company’s edge and keep its clientele amid competition from both Cathay Pacific and mainland airports. Hactl stands to lose 45% of the three million tons of cargo it handles a year when its biggest client Cathay Pacific/Dragonair moves to its own cargo terminal that will open in early 2013. The first phase of the terminal could handle an annual tonnage of 2.6 million, which will eventually rise to 4 million tons upon completion of its second phase. That is almost equal to the total cargo volume handled by the airport today. Whitehead said Hactl was still studying ways to redeploy the surplus capacity that would emerge, including leasing some of the extra space to freight forwarders for cargo storage. Five new airlines have joined Hactl this year, compared with 14 for the whole of last year. With tough competition ahead, Whitehead called for faster progress towards building a third runway at Chek Lap Kok to avoid the airport losing its status as Asia’s cargo hub. The Hong Kong Airport Authority expected demand on cargo traffic to reach 5.6 million tons a year by 2020, but with a third runway it could go up to 7.2 million tons in 2025 and 8.9 million tons in 2030, the South China Morning Post reports.
Airlines penalized following anti-cartel probes
By : agxadmin
Airlines in Hong Kong that fixed fuel surcharges on freight in a collusive process supported and approved by the Civil Aviation Department (CAD) have been the subject of investigations by cartel-busters across the globe. The probes, which began in 2006, have resulted so far in USD3 billion in criminal and civil penalties to internation for airlines including Cathay Pacific Airways. Four airline executives have been jailed. Ongoing criminal investigations and civil claims for compensation in North America, Europe, Australasia and Asia could make the final bill much higher. At issue is the way fuel surcharges were assessed and agreed by airlines around the world between 2000 and early 2006. In Hong Kong, the CAD allowed airlines to submit applications collectively through the Board of Airline Representatives. The surcharges were assessed using an aviation fuel index compiled from a basket of fuel oil prices rather than the prices the airlines paid for their fuel. Department Spokeswoman Cherrie Cheung said: “The CAD has approved a mechanism under which airlines operating into and out of Hong Kong may file to levy a cargo fuel surcharge. The mechanism works on the basis that airlines may adjust their fuel surcharges in accordance with the changes of the aviation fuel index based on average weekly spot prices of aviation fuel from published oil industry sources.” The board began submitting filings on behalf of member airlines in early 2000 and continued until mid-2007, when the airlines applied individually to the Department. By then, the U.S. Justice Department and anti-cartel regulators had started investigating airline fuel surcharges. Two former Cathay Pacific Airways executives are among a number of airline managers who have been excluded from a series of plea-bargain agreements between carriers and the U.S. Justice Department to settle allegations of price fixing. Kenny Tang, formerly General Manager for Cathay Pacific Cargo, and Thomas Wong, who was the airline’s head of cargo sales for Hong Kong and China, may now face further charges. Tang is currently COO at Hong Kong Aircraft Engineering, the Swire Pacific aircraft maintenance company, while Wong is Managing Director for Hong Kong and Macao at DHL Supply Chain. Civil claims for compensation potentially worth billions of U.S. dollars are continuing in five countries.
Chinese airlines’ cargo volumes down in May
By : agxadmin
Chinese airlines suffered annual declines in cargo volume in May for the first time this year as cargo volume dropped 4.2% from a year earlier to 447,400 tons, including a 16% dip on international routes to 138,700 tons, according to the Civil Aviation Administration of China (CAAC). Cargo volume on the China-Japan route dropped 17.3% in May from a year earlier, and with South Korea it was down 44.3%. China Eastern Airlines delivered 108,360 tons of cargo in the period, dropping 12.68% from a year earlier, and Air China sent 98,490 tons of cargo, edging up 1.3%. Hong Kong-based Cathay Pacific and its affiliate Dragonair carried 138,095 tons of cargo and mail last month, a 12.9% decrease compared to one year ago, while the cargo and mail load factor was down 10.9 percentage points to 68.2%.
DHL to expand investment in western China
By : agxadmin
Deutsche Post-DHL’s express division will continue expanding its investment in China, especially in the western region, said Ken Allen, Chief Executive of DHL Express. Wu Dongming, Managing Director of DHL-Sinotrans International Air Courier, a joint venture in charge of DHL’s express business in China, said notable business growth was seen in cities in the western and central regions, such as Chengdu, Chongqing and Wuhan. To meet the growth in business volume, the company will consider scheduling more flights to connect Chengdu and Chongqing with its central Asian hub in Hong Kong, Wu said. The company’s North Asian hub in Shanghai, a USD175 million investment, is under construction and is expected to ease the capacity strain on its Hong Kong hub. Once its open, more direct flights will be scheduled to key Asian markets. Between January and April, revenue in China’s express industry jumped by 25.7% year-on-year to CNY21.42 billion. The overseas express business accounted for 26.9% of the total revenue, according to China’s State Post Bureau.
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