Finding the right margin


Alongside numerous challenges – among them, the effective implementation of air cargo security pro- cedures, uncertain economic conditions at home and abroad, and consequent soft demand – there are opportunities in North America, such as perishables transportation or trade with Asia


D


arryl Horzelenberg, manager air ser- vice business development (cargo) at Greater Toronto Airports Authority (GTAA), comments: “2012 contin- ues to be a challenging year for air


cargo at Toronto Pearson. For the first half of 2012 the cargo tonnage was down over last year during the same period.” He elaborated: “The challenge that we are


seeing is the European crisis and the competi- tion on the Asian markets, leading to decreased pricing for North America and creating fiercer competition and an increased propensity for cargo to look for other options of transport


including trucking to other airports, or to ocean freight. “It is a tough environment out there and air-


lines have to take stock to balance the profitability between revenues and capacity.” Horzelenberg noted: “Air freight and passen-


ger service go hand in hand. Belly freight at Toronto Pearson airport represents 55 percent of all cargo. The more passenger carriers we cater to the better the cargo connections and the service to the world that we can provide. “Belly freight is very important to several of


our airlines too, as this helps offset the cost of operating and fills the voids in the aircraft.”


However: “Our dedicated


freighters are also important as they draw in a large portion of cargo and represent options for freight forwarders, including for cargo that cannot fit on pas- senger aircraft.” GTAA is working to build


up the airport’s cargo charter activity, which is mainly driven by the movement of Canadian livestock around the globe. While international freight


constitutes the majority of Toronto Pearson airport’s cargo throughput, Horzelenberg con- firmed that domestic freight currently represents about 18 percent of the gateway’s total air cargo business. He went on to consider: “This is important


Horzelenberg: “domestic traffic will improve at a greater pace”


to us as we are often the link between the east and west of the country, with an increasing focus on raw materials, industrial consumables and foods (typically paper products, coffee, tea, dairy produce and vegetable products). “There is also a growing demand for tem- perature or climate-controlled foods, specifically


fresh foods being shipped by air.”


Horzelenberg expects that


Canada’s air cargo community will remain cautious for the remainder of this year, and probably into 2013 too, although he also believes there will be a moderate upswing in demand. “My feeling is that the


domestic traffic will improve at a greater pace than the trade with the US or internationally, as it will take quite some time before the market outside of Canada really improves. “The introduction of the


B787 will be a great benefit for Air Canada and will increase the amount of space available for belly freight, just as the B777 assisted them,” he added. He also noted the recent launch of twice-


weekly B777-200LR (Longer Range) flights by Ethiopian Airlines, linking Toronto Pearson with Addis Ababa – the airport’s first direct connection with Africa.


BRIEFS • BRIEFS • BRIEFS • BRIEFS


DALLAS, Texas-headquartered Southwest Air- lines is to start twice-daily non-stop services between Lambert-St Louis airport and Washing- ton’s Reagan National gateway on 30 September.


VIRGIN AMERICA HAS reported a 33 percent rise in its operating revenues for the first quarter of 2012, as compared with the same three months of last year. However, the carrier made an operat- ing loss of US$49 million; high fuel costs were among the contributing factors.


LAST MONTH (July), 850 pigs were flown from Winnipeg Richardson International airport to Chengdu on board a China Cargo Airlines B747- 400 freighter. The animals were sent by Manitoba-based Genesus Genetics as breeding stock in order to improve the quality of global hog production.


ONTARIO INTERNATIONAL airport processed 38,269 tons of air cargo in June, up by 11.5 per- cent in comparison to the same month of last year. Over the course of the first six months of 2012, throughput increased by 15.4 percent year- on-year to reach 220,839 tons.


COLOMBUS, OHIO-BASED Airnet Cargo Charter Services has combined its scheduled and on- demand cargo charter service with its scheduled overnight flight network to offer a US-wide, cus- tomised, time-critical small package “hybrid” shipping option.


TURKISH AIRLINES is to launch non-stop four times a week flights between Istanbul’s Atatürk International gateway and George Bush Intercon- tinental airport in Houston on 1 April 2013, using a B777-300ER (Extended Range) aircraft.


United Continental makes profit, cargo revenue down


US-based United Continental Holdings – the carrier comprising United Airlines and Conti- nental Airlines – reported a net income of US$545 million, excluding $206 million of net special charges, for the second quarter of 2012. The company’s cargo and other non-passen- ger revenue rose by 3.4 percent year-on-year


during the three months ended 30 June, to $1.2 billion – but taken as a separate item, cargo operating revenue fell by 16.1 percent. In other news, United Airlines has showcased


its first B787 ‘Dreamliner’, which is due for delivery in September. United is the North American launch customer for the aircraft.


Page 6


13 August 2012


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12