06News


American merger plan


Two of America’s biggest airlines, American Airlines andUS Airways, are tomerge to create a business offeringmore than 6,700 daily flights to 336 destinations in 56 countries. The combined airlinewill


operate under the American name and is expected to maintain all hubs currently served by American Airlines and US Airways, resulting inmore travel options for customers. American is a key player in the


oneworld Alliance alongside British Airways and Iberia across the Atlantic and with Japan Airlines and Qantas across the Pacific. Both airlines expect that the


regional carriers they own – AMR Corporation’s American Eagle andUS Airways’ Piedmont and PSA –will continue to operate as distinct entities, providing seamless service to the combined airline. The company will be headquartered inDallas- FortWorth.


Cathay feels cargo pinch


Weak demand for air cargo in Hong Kong andmainland China hit sales at Cathay Pacificwhich reported a 5.5 per cent fall in cargo revenue toHK$24,555 million (£2,115m) for 2012. Yield for Cathay Pacific and


Dragonair remained the same as last year at HK$2.42. Capacity was down by 3.1 per cent while the cargo load factor dropped by 3.0 percentage points to 64.2 per cent. The group said that the airlines’


cargo businesswas affected by weak demand inmajormarkets, particularly fromAsia to Europe. Demand for shipments fromthe two keymarkets ofHong Kong andMainland China,waswell belowexpectations, although therewere short-termupturns in March and in the last quarter. Capacitywas adjusted in line with demand. The airline’ total revenue for


2012was up one per cent to HK$99,376m(£8,561m) but attributable profitwas down 83.3


per cent toHK$916m(£79m). 


Cathay Pacific has ordered three


Boeing 747-8 Freighters in a deal valued at someUS$1 billion. It has also taken options for five additional 777 Freighters. The newadditionswill take Cathay's Boeing 747-8 Freighter fleet to 13.


Sales rise at IAGCargo


Commercial revenue at IAG Cargo rose 2.3 per cent to €1,217million last year, despite a 1.2 per cent fall in the volume of traffic. Fourth quarter commercial revenue (flown


revenue plus fuel surcharges)was €329million versus €310million in the same period last year. Overall yield,measured by commercial


revenue per cargo tonne kilometre (CTK), for the fourth quarter increased by 8.5 per cent versus the same period last year. Volumes of 1,561million cargo tonne


kilometres (CTKs) for the quarter represent a decrease of 2.2 per cent versus the same period last year. For the twelvemonths the figure is 6,080million CTKs, a decrease of 1.2 per cent on the same period in 2011.Cargo capacity for the


quarterwas up 3.3 per cent and up 3.5 per cent for the full year. Steve Gunning,managing director for IAG


Cargo said: “Given the continued challenging economic backdrop,we have remained focused on the continuing integration and alignment of the business. In 2013wewill continue to deliver valuable network reach for our customers, offering user-friendlymulti-channel distribution and providing an outstanding product portfolio.” IAG Cargo is the single business created


following themerger of British AirwaysWorld Cargo and Iberia Cargo in April 2011. In April 2012, IAG completed the purchase of bmi, including bmi Cargo.


Closer collaboration needed


Airlines and their partners in the air cargo supply chain need to work together tomake air cargo more competitive and address the challenges of safety, security and sustainability, according to TonyTyler, director general of the International AirTransport Association. He pointed out that air cargo


transportsmore than $5 trillion worth of goods annually –more


Modernise processes –


transitioning to a paperless operating environment is critical to improving air cargo’s competitiveness. IATA is targeting 20 per cent implementation of the e-AirWaybill by the end of 2013 and 100 per cent by the end of 2015. FIATA and theGlobal Shippers Forumhave agreed to push forward the digitalisation of other freight documents. e-AWB


Freight also brings an economic benefit of $1-$2 billion over five years. “Air cargo is a global network. “We need a risk-based approach with statesmutually recognising


their security regimes,” saidTyler. 


regulations are followed. 


Ensure that dangerous goods Focus on environmental


sustainability.The industry is committed to improving fuel efficiency by 1.5 per cent annually to 2020, capping CO2 emissions from2020with carbon-neutral growth and cutting net emissions in half by 2050 compared to 2005. Tyler said 2013would be a


crucial year for aviation.The International Civil Aviation Organisation is leading efforts to develop a global solution for the market-basedmeasures needed to help aviation reach its CNG2020 goal. “Finding agreement among


than a third ofworld trade by value – and for airlines, it accounts for about 12 per cent of industry revenues. However, he said, the past two


years had been particularly difficult and last year sawa two per cent decline in both air cargo demand and yields. Tyler set out a series of


priorities in his speech to delegates at theWorld Cargo SymposiuminDoha,Qatar:


the end of 2012. 


penetrationwas 6.8 per cent at Secure the supply chain: IATA


has called on governments to implementmutually-recognised secure supply chain regimes.The Secure Freight initiative championed by IATA is an example of a supply chain frameworkwhich is being piloted in eight locationsworldwide.The firstwasMalaysiawhere studies have estimated that Secure


governments on a global approachwill not be easy.The industry is united and doing all that it can to help. At the direction of our Board of Governorswe areworking through our governance processes to achieve an industry agreement on howto share the burden of CNG2020. “And the efforts of the cargo


community to develop a common carbon calculator will assist in the dialogue,” said Tony Tyler.


April 2013 Supply Chain Standard


www.supplychainstandard.com


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