Cool technology boosts Aer Lingus 24
Aer Lingus Cargo is putting a major promotional effort behind its AerCool service aſter signing a master lease agreement with CSafe, manufacturer of the active temperature-controlled AcuTemp RKN container. The carrier is also a long-
standing user of the rival Envirotainer, but Peter O’Neill, Aer
Lingus’ director of cargo, says the fact that CSafe is a US company, with a product approved by the Federal Aviation Administration, will provide additional reassurance to shippers and consignees on the critical transatlantic trade lane. The units are available on a per- trip basis on all Aer Lingus flights
linking Dublin and Shannon with the carrier’s four US destinations of New York, Chicago, Boston and Orlando. The routes are served by Airbus A330s with capacity for up to 20 tonnes of cargo. Brian
Kohr, president of
CSafe, says: “Aer Lingus Cargo offers a unique solution for customers shipping temperature-
sensitive healthcare products between important production and distribution sites
located
in Ireland and the US. The pairing of Aer Lingus and CSafe will significantly expand temperature-sensitive air carrier transportation options for our mutual customers within a critical corridor which has been historically underserved.” Aer Lingus recorded cargo
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revenue of €23.3 million in the six months to June 30, an increase of 5.9% on the first half of 2011, though the revenue tonne-kilometre figure was down by 6.3%. Shorthaul tonnage increased by 10.8% to 3,735 tonnes while longhaul tonnes fell by 11.5% to 9,937 tonnes. In a statement, the airline said the volume decline reflected increased competition, particularly in the US, as well as weaker demand in the Eurozone. Conditions are more
challenging than last year, O’Neill says. “The first quarter was OK but it died a death aſter Easter. There is plenty of activity but the size of consignments is down. Our focus on the development of AerCool has gone towards mitigating the general market decline. “We’re turning on the taps in
Europe, especially as regards shipments out of the US. We hit the ground in the early hours of day two in Ireland, which makes us as quick into smaller European markets as other carriers flying into a main hub and then trucking. We have dimension limits with the A320 in Europe, but it takes three to four tonnes of cargo, including single pieces of up to a tonne. It’s a good shorthaul aircraſt.” O’Neill sees the Middle East
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as another promising market for AerCool. Aer Lingus has a new codeshare agreement with Etihad and also handles the carrier’s ten A330 services a week from Dublin to Abu Dhabi. Etihad took a 3% stake in Aer Lingus in preparation for
the
codeshare deal but of more concern are Ryanair’s repeated attempts to take over Aer Lingus. An existing 29.8% shareholder, Ryanair launched a formal offer in June,
its
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third as the Irish
government prepares to divest its 25% stake in Aer Lingus. Now, though, the European
Commision has launched an investigation into the proposed takeover. Ryanair’s bid is not only bitterly opposed by the flag carrier, but
Aer Lingus has reinforced its transatlantic temperature- controlled cargo service thanks to a tie-up with CSafe
also rang alarm bells at the Irish Exporters
Association, which
fears for the future of the Aer Lingus air freight service to the US if Ryanair’s bid gets the green light. At a meeting with Irish
Transport Minister Leo Varadkar, the IEA underlined the strategic importance of this service to high- tech and life sciences exporters, and urged the government to reconsider its decision to sell. John Whelan, IEA chief
executive, says: “Ryanair has a policy of not handling air cargo and hence if it procured the dominant stake in Aer Lingus, is likely to drop it. “The government has been
focused on passenger issues, but Aer Lingus flights carry approximately 52% of the value of our exports to and 43% of all imports from the US. At risk is the €18 billion of pharmaceutical and medical technology that is exported by air to the US and €4.5 billion of high-tech imports required for a wide range of manufacturing companies in Ireland. “The air freight connection to
the US has been at the heart of Irish export growth for several decades. This is our largest export market as well as our main source of foreign direct investment. “Minister Varadkar has said
the Ryanair bid is unlikely to get past the the EU competition authorities – the UK will wait until aſter that decision. But the sale of the government stake brings a lot of other players into the market, and you don’t know where you will end.” Ryanair has promised it would
keep the Aer Lingus brand separate if its bid succeeds, and O’Neill dismisses the suggestion that a takeover would jeopardise US services. “But the last thing shippers want is uncertainty,” he admits.
Aer Lingus Cargo is sponsoring
the Multinational Exporter of the Year category in the IEA’s National Export Industry Awards. The Taoiseach, Enda Kenny, will present the awards on 23 November.
Issue 5 2012
///IRELAND
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