Vol. 8 No. 78                                               WE COVER THE WORLD                                                            Friday July 24, 2009

     Vietnam plans to establish ten international airports across the country through the expansion of existing facilities and the construction of new ones, according to a recent zoning plan released by government authorities in Ho Chi Minh City.
     The plan, drawn up by Vietnam’s Ministry of Transportation, will include renovations and massive upgrades to Hanoi’s Noi Bai International Airport and Ho Chi Minh City’s Tan Son Nhat International Airport, which will greatly increase their capacity for passengers and cargo.
     By 2020, Noi Bai International Airport looks to be able to serve as many as 25 million passengers a year, up from its current annual level of seven million. The airport will also handle 260,000 tons of cargo and, with the addition of two new runways, will be able to facilitate the landing of large aircraft like the Boeing 747 and Airbus’ A380.
     Come 2015, Tan Son Nhut International Airport will be capable of handling 23.5 million passengers a year as well as 600,000 tons of cargo. Improvements will also be made to the Cam Ranh, Chu Lai, Cat Bi, Danang, and Phu Bai international airports.
     New international airports currently under construction include Phu Quoc, Long Thanh, and Can Tho. Long Thanh International Airport, located in Dong Nai Province, will be the largest in the country when completed.
     Covering 50 square kilometers, it will boast four runways and five terminals and will be able to handle 100 million passengers as well as five million tons of cargo annually.
     Tan Son Nhat is getting special attention because of the city's special situation.
     But despite Ho Chi Minh City's ability to successfully attract foreign investment, the disbursement of it has been lagging so far.
     Vietnam’s economic hub, not including industrial parks and export processing zones, has attracted nearly US$26 billion in foreign direct investment since 1987 but only 39.6 percent of this amount, or US$10.1 billion, has been used.
     In District 2’s Thu Thiem new urban area, of the two FDI projects worth US$600 million from mid-2008, only US$51 million of it has been released.
     The lag in disbursement is being blamed on the city’s infrastructure problems, shortage of skilled workers, and expensive real-estate prices.
     The head of the Foreign Investment Agency, Phan Huu Thang, said that authorities should monitor FDI projects to anticipate problems and adding provinces and cities that do so have a high disbursement rate.
     He added that city officials should select 50 major projects and give their investors support to help speed up the disbursement process.
Gordon Feller

Talking Aircraft Finance

     If getting into this business was once as easy as “buy yourself an aircraft,” today in real life, it has become a piece of art to find even barely reasonable financing when planning to purchase an aircraft – forget a complete fleet.
     Today it is the job of highly capable specialists to obtain aircraft financing.
     The Aviation Press Club of Germany hosted Wolfgang F. Driese (left), Chairman of the Board of DVB SE, a subsidiary of German DZ Bank, and gained some insight into this exciting but seldom reported on activity that in truth touches almost everyone that flies or operates an aircraft anywhere in the world.
     DVB was founded in 1923 and was a transportation bank at the get go owned almost completely by German Railroad.
     In fact even after WWII, DVB maintained many branches at key railroad stations and was the go-to resource for many seeking foreign exchange functions.
     That business base has slowly changed during the past ten or so years as DVB has evolved in 2009 as a specialist in financing traffic and transportation projects.
     Today DVB is dedicated to the financing of aviation, shipping and land transport assets.
     Only a few years ago the image or rating of an airline or leasing company was taken into consideration before granting a financing.
     Wolfgang F. Driese points out: “Today it is the value of the aircraft itself that is carefully examined and evaluated.
     “The average age of the aircraft in the DVB portfolio is 6.8 years while that number is about 12 years across the board in the flying fleet worldwide.”
     The type of aircraft desired by an operator plays into the DVB finance decision.
     Condition, available parts, resale and break value is also considered.
     As example, DVB thinks about engines. Recently DVB took over a company in Bristol, Wales that repairs and refurbishes aircraft engines and their parts for second hand sale.
     Herr Driese adds:
     “At DVB, the nominal credit volume in the market in 2007 was EUR 14,37 b.
     “In 2008 it went up to EUR 18,49 billion. “Investment in ships was reduced while aircraft increased from 25.2 to 26.5 % of the total.”
     DVB, we learn is engaged in the financing of 851 aircraft; its dedicated Deucalion Fund holds shares in 50 aircraft, 18 engines and two airlines.
     In 2009 transport financing in fact is the bulk of the bank’s business.
     However DVB is not a mainstream bank but puts itself in the role of the “cherry picker, as” Wolfgang F. Driese puts it. Mentioning as example Lufthansa Cargo and DHL in this context as, “not a complicated but rather unusual financing model that was custom tailored for the purchase of the triple 777 freighter fleet of Aerologic”.
     “However,” Driese said, “the A 380 is not in the DVB books – it is too unique to foresee a second hand market.”
     Kudos to Aviation Press Club President Nils Haupt and deep thanks to Herr Driese who in 35 years in banking emerges as the spiritual father of a new style at DVB SE in Frankfurt.
Guenter Mosler

     Hong Kong Air Cargo Terminals Limited (Hactl) recently released its tonnage figures for the first half of 2009.
     A total of 187,955 tons were handled in June, down 14.4 percent year-on-year. Tonnage throughput for the second quarter and for the first half of the year was 540,744 tons and 1,003,758 tons, representing a year-on-year decrease of 18.5% and 21.5% respectively.
     The transshipment volume was 40,026 tons for June, and 115,808 tons for the second quarter, representing a year-on-year decrease of 8.4% and 8.0% for the respective periods.
     Total transshipment volume for the first six months was 219,097 tons, down 11.1% year-on-year.
     Ms Lilian Chan, General Manager, Marketing and Customer Service told Air Cargo News FlyingTypers, “Cargo throughput is generally a good indicator of the economy. Whilst the first half of 2009 has in general been difficult, it is delightful to observe the relatively stabilized tonnage performance over the past few months.”
     “Looking beyond the economic crisis, it is more important for us to maintain a closer touch with our customers and support our business partners in an even more flexible and efficient manner, working together to reinforce Hong Kong’s role as the region’s preferred air cargo hub.”
David

UK Club August At Ascot Races

     Pat Roche, (Meadows Airfreight) who also serves as President of United Kingdom Air Cargo Club (UKAAC) reports UKAAC hosts Day At The Races Saturday August 8 at Ascot.
     “The day features The Dubai Duty Free Shergar Cup, Britain's only jockeys' competition, where teams of riders from all over the world compete over six races for the trophy.
     “Attendees get the chance to meet the jockeys taking part and get their autograph in the race card.
     “UKAAC has special seating & picnic boxes.
     Cost is £38.00 (kids pay less),
     “Every year UKACC raises thousands of pounds for charity by bringing industry colleagues together for social and fundraising events,” Mr.Roche (ex Seaboard World Airways) explained.
     “In 2009, proceeds from our events and charity raffles will be donated to the ‘Help for Heroes’ Charity.
     UKACC’s history as an industry social networking club dates back 45 years. “Today, operating as      UKACC, the club includes more than 400 leading UK air cargo executives as members.
     “We are building our membership in this great club.
     “Everyone is welcome!” http://www.ukacc2000.co.uk/Ascot Races & 80s 2009.htm
Geoffrey

 

Air China To Fraport

     That’s quite a big fish, Fraport Cargo Services GmbH (FCS) has caught in their net. Since June 15, the handling unit of Frankfurt Airport manager Fraport AG has been responsible for delivering the entire ground services for Air China Cargo.
     “We are talking about a capacity of up to 6,000 tons a month,” emphasizes Head of Sales and Marketing Hans-Georg Emmert of FCS.
     Kehan Zhang, (left) Deputy Managing Director Europe of the Chinese carrier notes:
     “Yes, migrating to Fraport Cargo Services involves up to 36 flights each week, which include 15 full freighter movements with jumbos B747-400Fs.”
      This makes Air China Cargo one of the big boys at Frankfurt, ranked presently fifth, right after LH Cargo, FedEx, Air Bridge Cargo and Cathay Pacific Cargo.
Heiner Siegmund

Women In Air Cargo
  Our exclusive series “Women In Air Cargo” asks our readers to send some words and a picture about somebody that you know who is female and has made a difference in air cargo.
  This effort is not limited to just success or failure, it is meant to raise awareness about the legions of unique women who in most cases are unsung heroines in the air cargo industry.
  So write and we will share your story with our readers around the world.

     Plane spotting, even today is still a wonderful spectator sport drawing scores of photographers each weekend who snap away from the saw grass fields along Rockaway Boulevard that borders JFK.
     Here is the group often in evidence that recorded A380’s first scheduled arrival last year.
     Sadly JFK itself that once was a record-setting airport today is a tableau of empty cargo terminals as it sinks to the bottom of almost everyone’s list of great world aerial gateways.
     When he was Mayor, Rudy Giuliani wanted the airport operator Port Authority of New York & New Jersey tossed out on their ear saying anybody could operate sub-world standard airports at least as well as PONY does for New York City.
     But as events unfolded Hizzoner was unable to close that deal.
     And in the way that these things often turn out in the end while Giuliani ran for President and Bloomberg bought the Mayor’s job twice at retail (Bloomie is about to purchase the office again)—leaving PONY vacuum packing a longer contract to run the airports.
     Since that time, JFK has just gotten worse.
     The once beautiful, albeit antique Terminal City is now a cacophony of rails and terminals that for the traveler down on the ground obliterates even the sense you are at an airport and pride until you can finally get into a finger walkway and look out a window at sky and airplanes.
     But here is where the moaning stops.
     The mess that is JFK International is not apparent out where the saw grass and feathered birds and plane spotters move easily together around Jamaica Bay in the late afternoon.
     Look into the faces of these folks out along the landing pattern growing in the weeds.
     They say keep it coming and we will celebrate!
     From these plane spotters are pages of web photos of every imaginable aircraft as they call on New York City.
     Some of these photojournalists have even set up their websites as aviation news services and blogs about every manner of aviation-related subjects.
     We welcome them all, certain that the airline/airport story gets even better coverage because they are around and watching and recording things all the time.
     The thing about the folks that gather in the tall grass along Rockaway Boulevard that borders JFK is that they recall the love of aviation, carrying on a proud tradition of aviation buffs everywhere that gather at FRA or MIA or BKK to watch the action and photograph the passing scene.
Geoffrey

 

     Air Cargo News FlyingTypers leads the way again as the world’s first air cargo publication to connect the industry to the broadly expanding and interactive base for social commentary—Twitter.
     Here are updates from Twitter so far this week. To be added to this 24/7/365 service at no-charge contact: acntwitter@aircargonews.com

 

July 23:   It’s a great day for Michael Bock, CEO and Thomas Homering, Managing Director as Hahn-based Air Cargo Germany (ACG) has air operator’s certificate (AOC) from Germany to launch charters & schedules via B747-400SFs.

July 23:   Pakistan Cargo Services maintains offices in Sialkot, Peshawar, Rawalpindi, Islamabad, Gujranwala, Lahore, Faisalabad and Karachi. A top forwarder in Pakistan, company is into air and sea freight. www.pakistancargo.com.

July 23:   AMI moves top executive to Dallas from UK. Wholesaler has five offices in USA generating 16% of total throughput but hopes for 30% within two years.

July 23:   Talks to the animals. American Airlines Cargo site makes it easy to take your cat & dogs with you anywhere. Easy peasy. . . www.aacargo.com/shipping/animals.jhtml

July 23:   UPS profit of $895 mil, a 16.7% revenue decline for the second quarter ended June 30. Air volume flat while ground volume declined 5.4%.
Average daily international export volume down 7.3%. “The economic environment continues to be difficult. Declines in both our domestic and international businesses appear to be stabilizing but volumes will remain significantly below last year’s levels,” said Kurt Kuehn, UPS’s chief financial officer.

July 23:   Lufthansa Cargo and Covenant Aviation Security team up as August 2010 date for 100% mandated TSA cargo screening approaches.
“We are glad to have such a professional and highly qualified partner by our side,” Harald Zielinski, Head of Security and Risk Prevention at Lufthansa Cargo said.

July 23:   Plain Talk to celeb Chef Gordon Ramsay is off color but his Plane Food at T5 LHR is superb. Picnic menu & aerodynamic elegance are ground breaking.

July 23:   Let ’em merge for crying out loud . . . Lufthansa & Austrian cast aside doubts as open book ready that merger gets EU approval by month’s end. Both have cooperated via JV for years.

July 23:  Delta merged with NWA now both are losers @ $257 million 2Q. DL says it is "not planning for any meaningful rebound this year as the recession hurts air travel."

July 23:  ABX Air’s cargo sorting for DHL moves from Wilmington to Cincinnati-Northern Kentucky Airport after last shift tonight 7/23 as ILM loses 8,000 jobs to date.

July 23:  ELAL has a heart, carries artificial heart patient on a flight to JFK after man was refused by others. Now EL Al opens medical help desk at 1-800-223-6700.

July 23:  Cooperation when everybody loses. Palestinian & Israel stoneworkers and traders team up against phony truck waybills to expedite stone products from Palestinian workshops in the West Bank into Israel. Israeli trucks move easily but Palestinian trucks must offload at boarder causing damage to cargo.

July 23:  Schenker Australia & New Zealand new integrated logistics service options into Papua, New Guinea support oil & gas, mining,healthcare & more.

July 23:  Downers. ATA says U.S. cargo tons minus 20% May, now down 10 months. June SIA Cargo fell 20.8 %. PVG June down 4 % intl and 48% domestic.

July 22:  Lela Burden, who at106 was born in 1903 before the Wright Brothers flew took her first flight NIA/BWI/NIA same day aboard Southwest.

 

July 22:  Aramex joins IATA Cargo 2000,now one of 60 airlines, forwarders, handling agents, truckers & IT providers taking paper out of air cargo.

July 22:  Lufthansa Cargo trains for logistics despite crisis, offers 32 students start August 2010. Need HS, English, MoJo. Apply www.be-lufthansa.com.

July 22:  Open for business is DHL Asia Pacific Packaging Center in Shah Alam, Selangor Malaysia. Plans are to build six more in the region by 2012.

July 22:  New Zealand & Canada inked "Blue Sky Pact"( Open Skies) today at the Asia-Pacific Economic Cooperation (APEC) meeting in Singapore.

July 22:  UAL, CO, LUV financial news has lack of Biz travel killing lower fuel & other savings. CO raising bag & telephone fees. UAL to cut routes.