FT080708

NCA Drops New York

   Happy Days—Short Lived.
   Just over a month ago NCA Cargo took delivery of its seventh B747-400.
   Now as it struggles with runaway fuel costs the cargo carrier is suspending service into New York’s JFK International Airport although maintaining service at three other USA gateways including ORD, LAX and SFO.

     The words from a former high flier with what is considered a landmark air cargo handling facility at the airport struck like a thunderbolt as folks returned from their July 4th recess.
     “It is almost like time stood still, an unlikely development made all the more real as fuel costs continue to spiral out of control,” according to one observer.
     “While we know that these changes will impact some customers, the structure of our current fleet and the soaring fuel prices that far exceed our anticipation have forced us to reach this extremely difficult decision of suspending New York service.”
     With those words NCA Cargo headquartered in Minato-ku, Tokyo that on May 29 took delivery of its 7th B747-400F, "NCA Andromeda" said that it is dropping its four times weekly B747-400 all-cargo service into New York City’s John F. Kennedy Airport effective August 24.
     “If they can’t make money with a brand new state-of-the-art airplane that was delivered less than a month ago, we are all in trouble,” the source continued.
     According to NCA President Tadamasa Ishida, the company “has been making numerous management efforts to reduce fuel costs under the recent unlimited fuel price hike circumstances.
     “NCA has come to a decision that realignment of routes would be inevitable for some time in the immediate future so as to sustain and strengthen our fundamental route operations,” Mr. Ishida said.
     “NCA will suspend New York with KZ166 scheduled to depart Narita on August 24 and KZ115 scheduled to depart New York on August 25.
     “Instead, NCA will increase direct flights between Narita and Chicago from five to seven a week.”
    In a related move NCA said that flights departing Narita bound for Beijing via Seoul (ICN) during the Olympic Games will also be suspended through August 31 due to expected implications resulting from enforced traffic control around the Beijing area.
    “NCA will shift the service to Shanghai in same period, increasing Seoul/Shanghai service from two to four a week.
Happy Days-Short Lived. Just over a month ago NCA Cargo took delivery of its seventh B747-400.
Now as it struggles with runaway fuel costs the cargo carrier is suspending service into New York’s JFK International Airport although maintaining service at three other USA gateways including ORD, LAX and SFO

Russian Aircraft Hope To Gain Lift

     “Russia’s growing importance in global air cargo will provide a significant boost to the development of the country’s cargo aircraft market,” Denis Ilyin, Senior Vice President for Strategy and Commercial at AirBridge Cargo Airlines, said addressing the Russia & CIS Aircraft Conference:
     "Despite a certain decrease in the passenger air market, global air cargo is constantly developing and average annual growth up to 2025 is forecast at between 5.4% and 7.1%.
     “Russia can and will benefit strongly from this.
     “Airfreight growth in Russia over the next 17 years is forecast to be greater than that for North America, Europe-Middle East, Intra-Europe, Europe-Africa, Europe-North America, Latin America-Europe and Latin America-North America.
     “The development of Russian hubs in Moscow and Krasnoyarsk will greatly support Russia’s air cargo development,” he added.
     “Moscow is a natural hub connecting Europe to the Middle East, Indian Subcontinent and Southeast Asia while Krasnoyarsk in the Russian Far East sits in the centre of major tradelanes that connect the USA, Europe and Canada to China, Japan and Southeast Asia via cross-polar and trans-Siberian routes.”
     According to Ilyin, “Russia’s role in global air logistics will increase from its present 1.4% share of the total USD$80 billion global market to 8% in 2015 and 16% in 2030 worth an estimated USD$8.4 billion and USD$25.6 billion respectively.
     “Cargo carried on ramp aircraft is forecast to grow at a faster rate than non-ramp aircraft.
     “This will create many new opportunities for the Russian cargo aircraft market.”
     Volga-Dnepr Group, parent of AirBridge Cargo and Volga-Dnepr Airlines estimates an 8-10% growth in demand for ramp aircraft up to 2020.
     The global fleet of 479 ramp aircraft— AN-124-100, IL-76, AN-12 and C-130 freighters—currently accounts for 1.4% of the total $80 billion worldwide market.
     According to Ilyin, Russian cargo airlines’ share of both the scheduled and charter market using ramp aircraft, “is set for further rapid growth.
     “The 1.4% share of scheduled cargo carried by Russian carriers will grow to 10% by 2020.
     “Russia’s already dominant position in the $1 billion ramp aircraft operations market will increase from the current 74% market share to 90% in 12 years time.
     “The upward trend will be met by a growing fleet of Russian and Western-built freighter aircraft.
     “By 2020, development forecasts indicate that 52 AN-124 freighters will be required to support 39% of the buoyant Russian market.
     “Similarly, the IL-76 fleet will need to grow from 28 freighters in 2008 to 41 aircraft by 2020 to meet demand.”
          “Russia’s scheduled cargo service market, currently supported by 21 freighters in the 10-30, 30-100 and 100+ tons categories, will require 76 freighters by 2020, including 25 Boeing 747s.
     " The Russian economy has been growing steadily in recent years, creating a base for the very challenging and ambitious goals of the Russian air cargo industry in the next decade.
     “In order to turn these plans into reality, there will be more and more freighters flying to, from and via Russia, operated by both Russian and foreign airlines," he concluded.
David

   Left is Karl-Heinz Köpfle, the COO of Lufthansa Cargo with Carsten Spohr, the CEO of LH Cargo and Munich Airport CEO Dr. Michael Kerkloh, and Peter Trautmann, Munich Airport’s CO as a MOU sealed with a mountainous hand shake sees FMG, the Munich Airport operating company, and Lufthansa Cargo AG affirm their resolve to take things farther as elements of a partnership for future growth will include joint development, design and utilization as well as expansion of the freight facilities at Munich Airport.
     Key element in the cooperation is the regular integration of Munich into the cargo flight network of Lufthansa or its partner companies.
     A team of experts from FMG and Lufthansa Cargo will begin working together in the fall of this year on the systematic development of the freight business.

Set New Colombian Cargo

     Air Cargo News FlyingTypers learned that LAN Cargo has created a new cargo affiliate airline in Colombia authorized by local aviation authorities there.
     The endorsement of LAN CARGO’s project by the Colombian authorities enables the new affiliate to initiate the operational and technical certification process.
     LAN CARGO says that that could take approximately six months to complete, which means the new Colombian carrier should be able to launch operations during the first quarter 2009.
     Colombia is currently the largest air cargo market in Latin America in terms of exports to the United States, with an estimated volume of 200 thousand tons annually.
     Once launched, the affiliate company in Colombia will significantly contribute to the development of this important market, providing connectivity to the United States and Latin America with a modern fleet of Boeing 767-300F freighter aircraft.
     LAN CARGO told ACNFT that it will also be enhancing its fleet with the arrival of two new Boeing B777 freighter aircraft during the first quarter 2009.
     The Colombian affiliate, which will be managed by a team of Colombian executives and technical professionals, will seek to provide a higher level of service than currently available to exporters and importers.
     The new Colombian venture will have access to LAN CARGO and its affiliates’ broad network of routes within the region.
     “We are very pleased to continue with the consolidation of our cargo network, connecting the region’s main productive centers and markets, while reaffirming LAN CARGO’s objective of uniting Latin America with the rest of the world,” stated Cristian Ureta, Chief Executive Officer of LAN CARGO, said.