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Emirates Group Announces 25th Consecutive Year of Profit

Vinay — Sun, 19 May 2013 11:02:15 +0000

The Emirates Group has announced its 25th consecutive year of profit and company-wide growth ending the year in a strong position despite continuing high fuel prices and a weak global economic environment. The financial year also ended with some very positive newly reached capacity milestones throughout the business. In the Group’s 2012-13 Annual Report, the company posted an AED 3.1 billion (US$ 845 million) net profit, up 34 per cent from last year. Even with external challenges, the Group’s revenue reached AED 77.5 billion (US$ 21.1 billion) an increase of 17 per cent over last year’s results. The Group’s cash balance grew by 53 per cent reaching a solid AED 27.0 billion (US$ 7.3 billion).

“Achieving our 25th consecutive year of profit in a financial year with our largest ever increase in capacity across the network is an achievement that speaks to the strength of our brands and our leadership,” said His Highness (H.H) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group. Emirates revenue reached a record high of AED 73.1 billion (US$ 19.9 billion) growing by 17per cent when compared to the 2011-12 financial year. Although the average price of jet fuel did not increase over last year, it remains high and has impacted Emirates’ bottom line with the airline’s profit at AED 2.3 billion (US$ 622 million) representing an increase of 52per cent over last year’s results.

Defying the industry trend, the 2012-13 financial year has been a strong one for Emirates SkyCargo who for the first time reported a revenue over AED 10 billion reaching AED 10.3 billion (US$ 2.8 billion) mark, an 8 per cent increase over last year. Emirates SkyCargo’s tonnage increased 16 per cent reaching a remarkable 2.1 million tonnes in a shrinking airfreight market, highlighting its ability to grow revenues against the industry norm. This year, freight yield per Freight Tonne Kilometre (FTKM) decreased by 6 per cent. Contributing 15 per cent of Emirates’ total transport revenue Emirate SkyCargo continues to play an integral role in the company’s expanding operations. At the end of the financial year, Emirates SkyCargo freighter fleet totalled 10 aircraft – eight on operating lease and two on wet lease.

dnata’s cargo handling division also witnessed growth with revenue increasing by 7 per cent to AED 1.1 billion (US$ 293 million) on account of rapidly increasing business volumes at Dubai World Central Airport and by expanding handling activities at Dubai International Airport.

Lufthansa Cargo quickens the pace with eFreight

Vinay — Sun, 19 May 2013 10:59:16 +0000

Lufthansa Cargo is pushing the electronic Air Waybill (eAWB). The cargo carrier signed an agreement with IATA enabling electronic Air Waybills to be used significantly easier and more efficiently in future. Paperless airfreight is set to become more convenient especially for customers of Lufthansa Cargo. Following the new IATA multilateral electronic air waybill standard, forwarders need to sign only one agreement with IATA to gain acceptance from multiple carriers for their eAWB. All signatory airlines are then automatically included in the accord. The agreement spells out clear rules on the usage of the eAWB and renders complex bilateral eAWB agreements on legal aspects and interfaces between carriers and freight forwarders unnecessary. Lufthansa Cargo has been a key influencer in pushing the initiative and has tested its practical viability in a trial run since last November. “This industry-wide agreement is a major milestone on the road towards a completely paperless air cargo transport,” emphasized Lufthansa Cargo CEO and Chairman Karl Ulrich Garnadt. “Both our customers and we as an airline will profit from easier utilisation of the eAWB as well as from more efficient and faster processes.” Lufthansa Cargo plans to switch entirely to the use of eAWB by 2015. In the course of this year the eAWB is to become standard for transports from all German stations to all destinations in the global network of Lufthansa Cargo.

Virgin Atlantic Cargo stands firm with £230 million revenues in ‘challenging market’

Vinay — Sun, 19 May 2013 10:55:20 +0000

Virgin Atlantic Cargo has reported revenues for the 2012/13 financial year of £230 million and thanked customers around the world for their support, which ensured the airline performed well in a global market that showed decline. After two years of record growth, Virgin Atlantic Cargo’s results in the last financial year were virtually on a par with its best-ever figures, reported in 2011/12. The airline carried 214,737 tonnes in 2012/13, -0.91% lower year-on-year. This compares favourably with the average overall industry decline of -4.5%.

John Lloyd, Director of Virgin Atlantic Cargo, said: “Our result compares very positively with the industry average, particularly when you take into account that the markets we serve across the Atlantic, the Far East, Middle East and Africa were the regions most affected by challenging economic conditions. As well as remaining competitive on price, I believe it is our passion for customer service that means customers around the world have stayed loyal to us.

“We are especially pleased to see much better use of our offline network, particularly from Europe but also elsewhere, as we take an even more active management approach to our trucking operation. We have also seen more transhipment traffic between India and the U.S., supported by the return of flights to Mumbai and the addition of a fourth daily frequency to New York JFK. Our reputation for fast handling of connecting cargo in London is another contributing factor as well as a realisation by customers that with a network of 350 destinations worldwide, Virgin Atlantic should no longer be viewed as a niche carrier.”

During the 2012/2013 year, Virgin Atlantic Cargo increased its market share on 30 routes, with gains of between 1% and 40%. Its successful partnership with Virgin Australia made another valuable contribution to both airlines with revenue on the Sydney-Los Angles-Sydney trade lane 52% ahead of target. Whilst the industry forecast for 2013/2014 is for only a marginal growth of 1.4%, John is optimistic Virgin Atlantic Cargo’s performance will be boosted by revenues from Australia, improvements out of the U.S East Coast and growth from Japan and China. Better aircraft allocation will give the opportunity to boost cargo sales in markets such as Johannesburg and Los Angeles, while Virgin’s strong performance to and from India looks set to continue.

Saudia Cargo transports 630,000 juvenile fish from Larnaca to Tabuk

Vinay — Sun, 19 May 2013 10:50:08 +0000

Saudi Airlines Cargo has successfully transported 630,000 juvenile sea bream fish from Larnaca (Cyprus) to Tabuk (Saudi Arabia). The operation, undertaken on behalf of Tabuk Fisheries via Sagro Aquaculture, required meticulous planning and coordination due to the special nature of the cargo involved.

Close coordination between the Saudia Cargo team and Sagro Aquaculture was essential in order to ensure that the logistical aspects ran as smoothly as possible. This included obtaining special approval from Flight Operations for the method of shipment, arranging extra Ground Support equipment for Tabuk Airport to be able to handle the MD11F scheduled for the flight – the largest aircraft to operate through Tabuk in recent years – and obtaining permission from the Airport Authority and Customs to handle such a large quantity of live cargo arrivals into the Kingdom.

“Thanks to the team effort of everyone involved in this project, we are delighted to report the safe arrival of the young fish to their new home in Tabuk,” said Steve Manser, Director – Cargo Charter Sales at Saudia Cargo. “The success of this operation serves to demonstrate the wide range and nature of cargo that we are able to handle and we hope that the fish will be joined shortly by future flights from Larnaca,” he added.

Changi Airport welcomes the return of SWISS

Vinay — Tue, 14 May 2013 07:56:16 +0000

Changi Airport Group (CAG) has announced the return of SWISS to Singapore Changi Airport today. The Switzerland flag-carrier will operate daily Zurich-Singapore services ultilising the 219-seat Airbus A340-300 aircraft in a three-class configuration. Singapore is SWISS’s eighth Asian destination from its Zurich hub, and its addition to its network marks a further milestone in the airline’s growth.

The business-friendly city-state of Singapore has built on its advantageous geographical location to become one of the world’s top transportation hubs for sea and air cargo. The most extensive network of trade agreements in Asia also helps to make Singapore a major gateway to this rapidly-growing economic region.

“We’re very proud to reconnect our global network to one of Asia’s most vibrant economic powerhouses,” comments Ashwin Bhat, Swiss WorldCargo’s Vice President Area Management Americas, Middle East and Asia. “Like Switzerland, Singapore is known for its quality, reliability and productivity. And our customers for this new route can be sure of receiving all the tailor-made airfreight solutions and high-grade service that they have come to expect from Swiss WorldCargo.”

All of Swiss WorldCargo’s products and services for general and special airfreight consignments are available on the new Zurich-Singapore route. And at Changi International Airport, shipments are handled 24 hours a day at the state-of-the-art facilities of Swiss WorldCargo’s handling partner SATS. SWISS’s eastbound flight LX 178 departs from Zurich daily at 22:45 and arrives in Singapore at 17:10 the next day. The westbound flight LX 179 leaves Singapore at 23:10 and lands in Zurich at 06:10 (all times local).

IAG Cargo’s London Heathrow operation wins best air cargo terminal in Europe award

Vinay — Tue, 14 May 2013 07:54:34 +0000

IAG Cargo has been named as the best air cargo terminal in Europe at Cargonews Asia’s Asian Freight & Supply Chain Awards. The awards, which have recognised excellence within the air cargo industry for the past 27 years, selected IAG Cargo’s Heathrow hub operation from a shortlist of four major European cargo hubs.

IAG Cargo was presented with the award having been judged to have demonstrated strong leadership as well as consistency in service quality, innovation, customer relationship management and reliability at its Heathrow hub. IAG Cargo demonstrated that it had put in place a clear set of performance standards and consistently delivered against it. In addition, IAG Cargo was able to establish that it had invested in new terminal infrastructure to meet future demand.

John Cheetham, Regional Commercial Manager for APAC at IAG Cargo, commented: ‘This award is welcome recognition that our London Heathrow operation is a high performing global cargo hub. We have worked hard to ensure that we have in place the right premium products and that we can connect our customers to the global markets that matter to them. We also believe recent improvements in customer services, such as the wider availability of online booking services through iagcargo.com has also been instrumental in winning this award. We place customer service at the heart of everything we do and this award stands as proof that we are succeeding in this goal.”

IAG Cargo announces first quarter 2013 financial results

Vinay — Tue, 14 May 2013 07:44:27 +0000

IAG Cargo has announced its first quarter results from January 1 to March 31, 2013, reporting commercial revenue (flown revenue plus fuel surcharges) of €270 million for the year to date, a decrease of 7.2 per cent against the same period in 2012.

Volumes of 1,364 million cargo tonne kilometres (CTKs) represent a decrease of 8.0 per cent versus the same period last year. Cargo capacity was down 1.7 per cent.

Overall yield (commercial revenue per CTK) for the quarter increased by 0.8 per cent versus the same period last year, excluding the effect of exchange brings this to a 1.2 per cent increase.

Steve Gunning, managing director at IAG Cargo comments: “During the first quarter we have seen weak market conditions, particularly on the North American trade lanes. Industrial action at Iberia during February and March also affected the load factors.

“Two years on from the creation of IAG Cargo, we are focused on delivering an outstanding global cargo network for our customers coupled with a single set of products, accessible via a range of easy-to-use booking channels.

Jet Airways and Etihad Airways forge strategic alliance under FDI policy of Government of India

Vinay — Wed, 24 Apr 2013 14:10:42 +0000

Etihad Airways of the United Arab Emirates and Jet Airways of India today announced that the UAE national carrier has agreed to subscribe for 27,263,372 new shares in Jet Airways at a price of INR754.74 per share. The value of this equity investment is US$379 million and will result in Etihad Airways holding 24 per cent of the enlarged share capital of Jet Airways.

Etihad Airways’ wider overall commitment to Jet Airways includes the injection of US$220 million to create and strengthen a wide-ranging partnership between the two carriers.

As part of this Etihad Airways paid US$70 million to purchase Jet Airways’ three pairs of Heathrow slots through the sale and lease back agreement announced on 27 February 2013. Jet Airways continues to operate flights to London utilising these slots.

An amount of US$150 million will be invested by Etihad Airways by way of a majority equity investment in Jet Airways’ frequent flyer program “Jet Privilege”, subject to appropriate regulatory and corporate approvals and final commercial agreements which are expected to be completed within the next six months.

Under the strategic partnership, which will be subject to full regulatory and shareholder approval, the airlines will gradually expand existing operations and introduce new routes between India and Abu Dhabi, providing an ever wider choice to the travelling public. They will combine their network of 140 destinations, with Jet Airways establishing a Gulf gateway in Abu Dhabi and expanding its reach through Etihad Airways’ growing global network.

Passengers from 23 cities in India will benefit from direct connections to international destinations. New flights from Jet Airways’ home hubs and metro airports will further strengthen its current operations from these airports. Jet Airways’ vision continues to be to develop Delhi and Mumbai airports as its primary home hubs and connecting them to Asian, European and other regions.

Details of the investment were unveiled by Etihad Airways President and Chief Executive Officer, James Hogan, and the Chairman of Jet Airways, Naresh Goyal.

Mr Hogan said: “We are pleased to have reached this significant stage in India with Jet Airways and are certain the partnership will bring significant benefits and opportunities for global growth to both airlines.

“It is expected to bring immediate revenue growth and cost synergy opportunities, with our initial estimates of a contribution of several hundred million dollars for both airlines over the next five years.

“The Indian market is fundamental to our business model of organic growth partnerships and equity investments. This deal will allow us to compete more effectively in one of the largest and fastest-growing markets in the world.”

“We look forward to collaborating with Jet Airways and constructively working together with them and their stakeholders to build a sustainable, competitive and profitable airline.”

Mr Goyal said: “I would like to thank the Government of India, especially the Ministries of Civil Aviation, Commerce and Industry, and Finance, for having the foresight to introduce the historic reform of allowing foreign direct investment into civil aviation in India. Infusion of FDI in the domestic sector will result in the improvement of the economics of aviation, grow traffic at our airports and create job opportunities.

“I am extremely happy to be in a partnership with an airline that shares our customer-centric operational philosophy and ethos. I have no doubt that this partnership with Etihad Airways is a win-win situation for all our stakeholders, especially our guests, who will now have access to a much expanded global network.

“This transaction further strengthens the balance sheet of Jet Airways and, more importantly, underpins future revenue streams, which will accelerate our return to sustainable profitability and liquidity.”

A key component of the wide-ranging partnership is expanded codesharing on flights with passengers benefiting from reciprocal ‘earn-and-burn’ rights on the airlines’ frequent flyer programs.

The proposed codeshare expansion will significantly enable Etihad Airways to tap into India’s rapidly growing travel market, providing additional passenger traffic to Etihad Airways’ Middle Eastern, North American and European destinations, and give Jet Airways passengers from various cities access to an expanded network.

Current estimates predict the size of the Indian market to grow to 42 million travellers over the next five years at a rate of 10 per cent per year, while the Indian middle class, which provides the majority of air travel demand, is forecast to grow by 200 million, over the next eight years.

Etihad Airways currently flies to nine Indian destinations including Delhi, Chennai, Mumbai, Kozhikode, Thiruvananthapuram, Hyderabad, Bangalore, Ahmedabad and Kochi, with a total of 59 flights per week.

The partnership will also help drive a significant increase in traffic growth through Abu Dhabi International Airport, as well as Jet Airways’ hubs of Mumbai and Delhi international airports.

Key benefits for both airlines will flow from synergies and cost savings in areas including fleet acquisition, maintenance, product development and training.

The airlines will explore joint purchasing opportunities for fuel, spare parts, equipment and catering supplies, as well as external services such as insurance and technology support.

Other areas of co-operation will include joint training of pilots, cabin crew and engineers, as well as maintenance of common aircraft types and the consolidation of guest loyalty programs.

Qatar Airways Cargo performs large high profile horse shipment

Vinay — Wed, 24 Apr 2013 08:58:43 +0000

In March this year, Qatar Airways Cargo performed one of its largest high profile horse shipments so far. The safe handling and care of the horses was of utmost importance to the operation. The shipment was carried out using five special charter flights organised by Qatar Airways Cargo’s charter division. 97 horses, travelling in 49 specialist horse stalls along with 15 tons of equipment, were flown from Amsterdam to Doha on Qatar Airways Boeing 777 freighters. The shipment was one of the airline’s largest horse movements to date. With the soon-to-be opened live animal facilities at the new Hamad International Airport, Qatar Airways expects to handle many more high profile live animal shipments. Qatar Airways Cargo currently serves over 40 freighter destinations through its hub in Doha, with currently three Airbus A330 and four Boeing 777 freighters.

Lambert-St Louis posts best cargo Q1 in 2 years

Vinay — Wed, 24 Apr 2013 08:55:20 +0000

Lambert-St Louis Airport (STL) has turned in its best first quarter cargo results in 2 years. Outbound freight was up 3.6% on 2012, at 17,502,745lbs (7,939,245kgs), while outbound mail rose 39.5% to 555,734lbs (252,080kgs), up 9.5%. Inbound cargo totalled 18,633,637lbs (8,452,217kgs), up 2.5%; meanwhile inbound mail was up 7.7% at 574,837lbs (260,746kgs). The total of all cargo and mail for the first three months of 2013 was 37,266,953lbs (16,904,289kgs), an improvement of 3.5% on 2012, and the best first quarter since the post-recession “bounce” of early 2011. Says Lambert-St Louis Cargo Development Director David Lancaster, “We have seen healthy growth in all sectors of our business so far this year: domestic and international cargo, and mail. It’s too early to say whether this trend will hold up throughout the year, but there is certainly more optimism among our community than has existed for some time.

“The real improvement in our tonnages, however, will come when our international marketing effort gains traction. Our main target is freighter operators, for whom we can offer a convincing business case centred on our ideal location, our impressive resources and our incentives program.”
STL has identified that a substantial amount of cargo from its region is currently trucked to and from Chicago and other larger hubs, to connect with their international wide body and freighter services. “This is time-consuming, costly and not environmentally friendly,” continues Lancaster.
“Freighter operations face huge challenges right now, with a perfect storm of soft rates and high fuel costs. So we believe the opportunities at STL to tap into a huge market catchment, while reducing operational costs, represent an appealing offering.”
He concludes: “Just one scheduled freighter operation will dramatically impact STL’s cargo statistics; and we are quite confident that the first will quickly lead to the second and third. It’s about changing habits, and it’s a waiting game, but we are in this for the long term.”