Freighter market will weather turbulence, says Boeing 28


Plane-maker Boeing says that while the short-term outlook for freighter aircraſt sales remains clouded by recession and over-capacity, in the long term it is much brighter. Manager of cargo communications, Bob Saling says:


“The air cargo


market was significantly affected by the global economic recession in late 2008 and 2009. This was followed by a strong recovery in 2010. We’ve experienced slight air cargo traffic declines in 2011 and 2012, while deliveries of new production freighters continued.” The first half of 2013 has continued to show a slight air cargo traffic decline. These declines, coupled with


regular deliveries of new aircraſt, have resulted in an ongoing oversupply


of freighters, he


explains: “This began in 2011, aſter the 2010 increase in air cargo traffic. Since then, a significant number of new production freighters, which provide benefits in economic performance, have entered the fleet and continued this overcapacity. We project that this overcapacity will continue until about the 2015 time frame.” Most of the new freighters


entering the fleet are primarily the 747-8Fs and 777Fs and their superior economics has caused carriers to reduce usage of (or in some cases stop using) their older airplanes, particularly 747-100/- 200/-300Fs , as well as a few 747- 400Fs. Moreover, Middle East carriers


have been quite successful in attracting


new business and


opening new routes into emerging markets, such as Africa. Asian carriers though have been hit, as the US economic recovery is slower than once anticipated and Europe has been dealing with economic challenges so there is essentially no growth in that region. But, says Saling, “we expect


that the latter half of 2013 will experience a levelling or slight increase in traffic, following by air cargo traffic growth in 2014 and 2015, driven by global increases in GDP of 3.1% and 3.5%, respectively.” This should eliminate current air cargo overcapacity by around 2015/16, he says, adding: “Barring exogenous events, air cargo traffic growth is expected to return around the middle of the decade


to the long-term trends forecast in our most recent Current Market Outlook. Demand for dedicated


freighters remains, but the mix of


sizes is evolving: “We see


increasing demand for large freighters (capacity of 80 tonnes and up), which constitute about 31% of the fleet today, increasing to 37% over the next 20 years and. Of the 770 large freighter deliveries projected, more than 80% will be new planes. This differs from other sized categories, in which freighters from conversions outpace new production aircraſt. Overall, Middle East-based


carriers have fared best, comparing 2012 to 2011, with an increase in revenue-tonne-kilometers (RTKs) of more than 14%, year over year


Flexibility is secret of success, says Luſthansa


Luſthansa Cargo sees the flexibility of having both bellyhold and fully freight capacity as the key to the carrier’s recent – relative - success. The German flag carrier says it has “considerably decelerated” the decline in cargo and mail tonnage in the second quarter of the year, moving only 0.8% less in June 2013 than in the same month in 2012, although there was a 3.5% decline for the first half of 2013 as a whole. A spokesman said: “We see the


the combination model as an ideal mix. Through bellies we can offer 300 destinations in 100 countries and through freighters we are able to carry large volumes and


also cargo that requires freighters such as large pieces. Furthermore freighter operations are very flexible and we can shiſt capacity from one region to the other quickly if required. “As we see several freighter


only-carriers struggling we are convinced that our set up is the right one to meet future requirements. Freighters will play a major role in our strategic positioning and we have invested in five Boeing 777 freighters, the first one will be delivered in October.” The 777F order was announced


in March 2011. The new planes would be used “to seize growth


opportunities fuelled by rising


demand,” said a Luſthansa statement. Aside from their high fuel efficiency, the noise footprint of the new freighters is smaller than that of the existing fleet, the Boeing 777F being the most modern freighter of its size, said Luſthansa. Luſthansa’s cargo utilisation


has bucked the overall market trend, increasing to 70% thanks to the German carrier’s “flexible, demand-orientated capacity management” - despite clear signs of weakness in the global economy, added Luſthansa Cargo CEO and chairman Karl Ulrich


Look: no fuel!


Having successfully flown from from the west to east coasts of the US powered solely by the sun’s rays, the Swiss-built Solar Impulse aircraſt faced just one little problem – how to get back home again A Cargolux Boeing 747


freighter provided the answer. The Luxembourg-based all-cargo operator had already flown Solar


Impulse from Payerne airbase in Switzerland to the US West Coast, where the revolutionary aircraſt started its ‘Across America’ mission from San Francisco to New York, including five stopovers on the way. In a unique, high-precision operation, the large Cargolux freighter landed and took off from the short runway at Payerne and had to be loaded


on the runway itself, because the airfield’s small apron could not handle the large Boeing freighter. Solar Impulse is the first solar-


powered aircraſt able to fly day and night and has already achieved five world records, including the record for the longest day and night solar- powered flight at 26 hours, 10 minutes and 19 seconds.


This first prototype can cross


a continent, but not yet an ocean. But the second version, the HB- SIB, will fly over the Pacific and the Atlantic oceans on its way around the world in 2015. However, there’s no suggestion


that carriers like Cargolux are planning to get rid of their kerosene-burning freighters just jet, despite ever-rising fuel costs.


Garnadt. “The withdrawals of a number


of cargo airlines from the market demonstrate the degree to which the air freight industry is struggling with this.” But there would be further


investments in Luſthansa’s own freighter network, he stressed. For example, new routes to the US, South America and China are planned for the winter schedule and it has already added the Mexican city of Guadalajara, with two weekly connections since March of this year. The airline has also slightly increased its offering in China again.


Customers moving outsize and heavyweight air cargo with Volga-Dnepr Airlines can now track their cargo using SMS messages. The carrier can now provide updates on the progress of charter flights and this is also supported by email alerts.


Chapman Freeborn cements Swiss deal


Chapman Freeborn Airchartering has signed a partnership with Swiss WorldCargo to support the carrier’s third-party chartering requirements. The agreement will allow


Swiss WorldCargo to expand its specialised product portfolio and offer clients full or part charter solutions using the entire range of cargo aircraſt worldwide. Chapman Freeborn will benefit


by working closely with one of the market’s leading airlines which has a network of 120 destinations in over 80 countries - served by a fleet of 85 aircraſt including Airbus A319, A320, A321, A330-300 and A340 types. It follows a similar strategic


cooperation signed in March between Chapman Freeborn


and Luſthansa Cargo, the partner airline of Swiss International Air Lines. CEO of Chapman Freeborn,


Russi Batliwala, said: “Both companies share a reputation for focussing on value-added services and operational excellence, and their expertise in belly cargo and worldwide network of destinations make it an ideal fit.” Oliver Evans, chief


growth. China-based carriers have also experienced nearly an 8% increase, and African carriers have had a 15% increase (although from a much smaller 2011 base than the other regions cited). Boeing’s latest Air Cargo Market


report adds that while some new passenger planes offer remarkable bellyhold freight capacity, notably Boeing’s


777-300ER, there will


also be demand for dedicated freighters which “offer shippers reliability, predictability and control over timing and routing that lower-hold cargo operations can’t match.” Full-freighters have accounted for a remarkably consistent 60% of the total airfreight market over the years.


Long-term, the plane maker is


predicting that the world freighter fleet will increase by more than half, from 1,730 planes in 2012 to 2,810 in 2032. Around 940 of these will be conversions of existing standard-body passenger planes. While modern, purpose-built freighters offer higher efficiency and lower operating cost, this is less of a consideration for some operators than initial capital cost, especially in emerging markets. Much of the demand for


new, purpose-built wide-body freighters will come from express carriers, although increased competition from surface transport might constrain growth in some regional markets.


Up to date


Issue 6 2013


///ALL CARGO AIRLINES


cargo


officer of Swiss International Air Lines, added: “Our two companies can forge a true partnership as we


have


distinct areas of expertise and experience while


sharing quality, customer a


common dedication to and passion for


service and just getting the job done according to our promises.”


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