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A R C H I V E S

N E W S

     Air Transport World (ATW) holds its 29th Annual Industry Achievement Awards in Washington D.C., this week.
     The event features a grand reception and dinner at the Capitol Hilton attended by aviation executives from around the world.
     ATW airline of the year is Emirates for passenger service. That selection comes as little surprise as the high-flying, Dubai-based airline company has blazed a new trail across the sky, lifting not only the Middle East but also an entire industry with aggressive expansion of services, new aircraft orders and a “can do” attitude about everything it does.

Prakash
Nair

     Prakash Nair, Emirates Cargo Marketing Manager accepts the award for EK, noting that the people of Emirates appreciate and are greatly honored for the accolade.
     “Everyone at Emirates thanks ATW for this great honor. We are even more dedicated to excellence and expansion of our services in the years ahead. Next April we will spread our wings connecting Dubai with New York City with A340-500 non-stop flights into John F. Kennedy Airport.”
     Cargo Airline of the Year is Korean Air. The Seoul-based airline has affected a remarkable turn around during the past few years.
     According to ATW today, Korean Air “has put together all the pieces needed to be a world-class operation.”


     United Cargo Web’s Greatest Hits . . . United Cargo said that it plugged in its Cargo Portal Services deal with Northwest, Air Canada and Unisys last week and right away within an hour booked some air cargo from Chicago to Beijing. Better than that, as last week turned into this week, the hits and booking just keep on coming. “Outstanding,” said UAL Cargo boss Roger Gibson. God bless ’em all at UAL for having some good news for a change. The new cargo portal initiative makes life easier for forwarders every step of the air cargo experience. Booking and tracking never was easier. Check it out. www.cargoportalservices.com. Out at LAX, United brings on-line its new $35 million 191,000 square foot state-of -the-art cargo facility on February 11th (a day before Abraham Lincoln’s 194th birthday.

Honest Abe
The sixteenth president of the USA was born Feb. 12, 1809). Honestly, January 24th was the ribbon-cutting party featuring speeches and celebration of the distinctive new cargo transfer facility with its 31 docks (seven of which are dedicated to UAL top customers with extra texture all around), 3,600 square feet of automated container cool-chain perishables, advanced tracking and automated systems all, located at 5932 West Century Boulevard on the easy in and out main approach road to Los Angeles International Airport. As this newest landmark for air shippers was launched, Roger Gibson noted: “Despite these troubled times this new facility offers our commitment to Los Angeles, its great airport and shippers everywhere . . . Air Canada said that it lost less money ($428 million) than any other North American international airline in 2002, but more than an airline awash in $10 billion dollars of red ink can stomach, having racked up three consecutive years of losing. Air Canada said that it will sell its “Jazz” airline subsidiary and take other equally draconian measures to create savings including spinning off its air cargo business into a separate unit. Air Canada Cargo will remain part of the airline “for now,” the carrier said, suggesting that down the road everything might be for sale . . . Meantime that deal between Delta, Continental and Northwest Airlines to code-share will surely end up in court as DOT mandates that the new “Three Amigos” who are trying to stay in business by forming a clear monopoly (35% of the U.S. market) wherever possible, are being told to limit their activities to no more than 2,400 flights daily, to code-share in primarily underserved markets, and leave some unused gates wherever possible, so that competitors can start up in airport space that they have abandoned. The events of 9/11, the precipitate drop in business and the continued spike in fuel costs coupled with the uncertainty of war and other factors have created a climate where airlines are desperate to find some way to clearer skies. Desperate times call for desperate measures, as it is said. DOT could go for an injunction. American or United could ask for relief in the matter, or wonder of wonders, all the parties could make a deal . . . Now that the new year has turned over in Hong Kong, two squabbling airlines, Cathay Pacific and Dragonair (Cathay wants into the mainland China market, Dragonair wants them to stay out), have been afforded the month of February to consider their respective positions to be further presented to the airline governing body in China, called The Air Transport Licensing Authority by mid-March. Cathay wants Shanghai, Beijing and Xiamen and has made a strong, even personal case questioning Dragonair’s ability to effectively serve and hold the exclusive rights to serve those cities . . . Indian Airlines about to order 43 A320 aircraft in a big bang air show announcement at Aero India Show in Bangalore. Airbus thinks sub-continent market will require 222 new aircraft during next 15 years. Boeing has tagged that number at 290. India remains good, solid two-way market for air cargo despite what ever else is going on in other parts of the world . . . KLM grounding one of its B747-300 Combis and if things don’t get better, the airline may ground another . . . Alaska Air code-shares with Cathay Pacific beginning February 15th. Hawaiian Air which already serves Oregon just seems to like it better up there as the official carrier of Paradise adds another Oregon destination linking up Portland with Maui from now until April 31st. Flights resume in October. But American is also adding Maui, moving its Lambert Field St. Louis service to Chicago-Maui from now on . . . Smart Thinking Ahead...There is an organization news site worth your time and attention at www.euroexpress.org. Here you will find an excellent go-to resource for a lot of things because this group is on the ball confronting what’s hot (and what’s not) in air cargo today. We especially like the 64 page “Economic Impact Of Express Carriers-UK which can be downloaded in about 30 seconds but if you are paying attention might take a couple hours to digest. The upshot is if somebody is trying to close down your airport at night, then this is better than good reading. All you have to do is go out and fill in the numbers and reasons neatly outlined in words and graphs and charts that show just how devastated the economy would be if your airport were (god forbid)under curfew. As we all struggle against difficult uncertain times against the reality that there is no crying as an excuse in air cargo, the smart ones among us will use this opportunity to better what they do so that when the wheel comes around again for good times we are ready to not only take, but benefit from the ride. The European Express Association is thinking about real issues covering every aspect of the industry today and tomorrow. There is leadership and benefit for all . . .

The Cedar Soar Again

     We don’t know about you, but having been around this airport life long enough to recall with horror, the Middle East Airlines aircraft on the hardstand at Beirut in 1978, blowing up all over the place—today’s view of a beautiful, milk- white A300-600 in MEA livery carrying The Cedars of Lebanon airborne on the tail, is an inspiring sight indeed.
     How far has MEA come, since the airline under siege with the great Salim Salaam as its leader was the last visible pride of Lebanon, while its flight kitchens baked Nan bread to help feed the local population?
     MEA Chairman today is Mohammed El-Hout, who also serves as current president of The Arab Air Carriers Organization (AACO).
     Recently the group held its AGM in Beirut.
     MEA, which lost $80 million in 1997 has come all the way back with a projected profit in 2003, (Mr. El-Hout notes, Inshallah) plus an all Airbus fleet including A300-600s, A310-200s and others.
     For the first time in 30 years, MEA is adding to its fleet with new aircraft.
     Maybe things will never be the way that they once were.
     That’s the way of progress and the world.
     But the first, great airline of the Middle East began with three letters, MEA.
     It’s nice to see MEA gaining lift again.
     www.mea.com.

     Boeing profits continued their slide in the final quarter of 2002, as the Chicago-based airplane manufacturer just like everybody else post 9/11 is slowly, coming back. For 2003, Boeing has said that it will produce 280 aircraft. So far, since 9/11, the company has deferred delivery on more than 500 aircraft. A couple of bright spots for the company has been their military business acquired from McDonnell Douglas and elsewhere. On the commercial side, EVA will order eight B777s, adding to their earlier order for six of the type. Ryanair caused ear-to-ear smiles wide enough to stretch from Lake Michigan, where the deal was closed, to Puget Sound, where the birds will be built. Ryanair ordered 100 B737-800s, the biggest order ever at one time for the type. Right now Ryanair, based in Dublin will operate 250 of the B737-800s by 2010, is inching up on Southwest as biggest operator of the B737. Ryanair picked up Buzz from KLM for a song last week when the Dutch threw up their hands at operating a low-cost carrier faced with mounting losses from the parent airline despite high load factors. Buzz will be downsized and fit into a growing Ryanair system that includes the previously acquired “Go” which Ryanair snatched from British Airways last year . . . Delta Airlines for a Song raising the specter of the big, mighty airline offering a budget alternative service albeit with a lyrical name, has left some industry watchers wondering why doesn’t Delta just fix itself instead of starting something else? . . . A new airport in Uttar Pradesh is slated for New Delhi that will be located about 40 miles from India’s capitol as part of the “Taj Special Economic Zone.” The ‘new’ New Delhi International will appear along the Agra-Noida Expressway yet to be built between Dhankaur and Jhevar. You can’t get much newer than that . . . Oman Airlines celebrated ten years of service last week. The Sultanate also firmed up its air agreements with Aberbijian. For air cargo, Oman Air operates a variety of B737-700/800s plus A310s and ATR aircraft offering service to Kaal and Slalah plus Duai, Abu Dhabi and other regional destinations. But for air cargo, the big news from Oman is the increased availability of handling and IT services. Last month OmaneCentre, Oman Aviation Services (OAS) and Omantel announced the availability of all airfreight information on line through Oman TradaNet’s (OTN) iX2 portal. Mr. Abdul Rahman Al Busaidy, CEO of OAS told aircargonews.com: “This is a major milestone for Oman in beginning their journey to a fully electronic, logistics infrastructure. Now consignees are able to track and trace their freight as it moves through Seeb International Airport. Once the consignee has entered his Airway bill number into the system (which is on-line to the OAS’ new ground handling system) it will then give the latest information such as arrival date/time, whether it has been checked, the data is entered into the system and ready for delivery. Alternatively organizations will also be able to have the information messaged directly to them (even to a mobile phone with an SMS message!), if they have subscribed to the automatic freight status system. The availability of the freight information so readily provides huge benefits for all concerned, one example is consignees will be able to judge accurately when to send vehicles to the airport to collect their freight. OAS is always striving to improve the service available to our customers and the freight community. This system will save customers and OAS from wasting valuable time in checking the status of their cargo movement in and out of the airport.” . . .

Happy Valentine's Day

Valentines Day is for lovers and for flowers. UPS notes that more than 7 million pounds of fragrant stems will zip through its cool-chain system to romantics everywhere February 14th. UPS helped position itself further in the perishables business when it picked up Miami-based Challenge Air Cargo, a couple years ago and that carrier’s extensive network in Latin America supported by a state-of-the-art giant refrigerator disguised as an air cargo transfer facility at Miami International Airport. But about the “pounds” weight in a business that likes to measure FTK’s and tons. Flowers by weight will cube out their transport before they weigh out. So how many roses does seven million pounds add up to? Quite a few bunky, and UPS has the juice to get them delivered. More info: www.UPS.com.

You think you have problems? Next month as the Miss Universe Pageant takes place in Puerto Rico, Miss Israel will be wearing a bullet proof vest. Ilanit Levy, who is a soldier in the army and hails from Haifa is taking it all in stride, including a slow boat to China if she wins the big prize.

Take It Or Leave It

     Ryanair orders aircraft seem ingly by the gross and makes money hand over fist (recent numbers de pict Ryanair net up 50% over a simi lar period a year ago) revealed a bit of what has made the Southwest Airlines copycat a European phenomenon. After having gobbled up rival carrier Buzz from a dazed and confused and money-losing KLM Ryanair told 100 of the less than 600 people at Buzz, that their jobs were toast. When the unions balked, Ryanair said that unless the jobs are given back, then everyone at Buzz is out of work. Ryanair will utilize the slots and routes inherited in the sale as it sees fit, with or without Buzz.
     Take it or leave it.


     Emirates Airlines manages to keep its eyes on the prize despite war worries, sagging economies elsewhere and a general malaise brought on by a combination of ingredients. In Washington, February 12 to accept the Air Transport World Award as Airline of the Year (Korean has been named “Cargo Airline of the Year”) EK can put that impressive trophy into what must amount to a gymnasium full of accolades from publications and organizations the world over.
     (At EK Sky Cargo headquarters they got so many plaques and trophies you can’t find the water machine.)
     At DXB, where EK headquarters, DNATA is building a new cargo handling facility that will double the size of the one currently in use just to keep up with events in the Emirates’ growing air cargo business.
     Big 2003 area of service growth for Emirates Airlines is Australia and China where carrier adds Sydney and Brisbane and Shanghai and Hong Kong. Elsewhere EK will fly to Moscow, Lagos, Nigeria as new destinations while carrier adds more service to London-Gatwick, Manchester and Teheran.
     Aircraft opening up long routes is A340-500. Flight time from Dubai to Sydney this year will be 14 hours. Next year when JFK, New York debuts (April 2003) trip will take 15 hours while SFO hop from DXB (October 2004) is 17 hours.


Drawing of the new flower center in Dubai.

     But in the ever shrinking world as airspeed adds potential to better business opportunities, maybe another day older, (while flying halfway around the world) will not also mean deeper in debt. Dubai in every sense of the word is what 21st century business is all about. Meantime back at the ranch, Dubai International Airport isn’t waiting around for the world to beat a path to its runways either. The world already has. Last year (2002) the gateway was supposed to handle 15 million pax but instead DXB did 16 million, up an unbelievable 18% above 2001 levels. But air cargo did even better, jumping by 24% to 785,000,00 tons. The airport authority is building as fast as it can, has many projects going all at once to satisfy 104 carriers serving 140 destinations.
     Air cargo gets a new Super Mega Terminal which will begin opening in 2004, adding in stages the ability to handle everything (and a bag of chips) that the world can ship, between now and 2018, up to 3 million tons.
     First phase of the new advanced Super Mega Terminal is slated to be delivered by the end of 2004. Elsewhere, a new flower center will debut by mid-2004 in a distinctive setting located on-airport but facing the Sharjah/Dubai Freeway.
     Talk about an architectural statement! But better still will be the ambient temperature in this manmade oasis that will put crisp into the fresh delivery of perishables.

     Deutsche Post World Net (DPWN) has an idea. Although this service is the direct descendant of the world’s first postal service, set up

Franz von Taxis
during the Hapsburg Empire by Franz von Taxis in 1490, all good things must come to an end.
     Faced with opening up the German home market to all comers in 2007 when DPWN will lose its monopoly, the company has taken advantage of its current contract and 513 years of experience in these things, to invest in other companies that will leave it in a positive position in just four years when DPWN is on its own in the big, bad world of commercial business.
     So far armed with more than $5 billion in acquisitions, DPWN has brought names like Danzas and its subsidiary AEI based in Connecticut, DHL, Postbank, and other companies like Italy’s Ascoti, a parcel delivery company added just earlier this year under the DPWN banner.
     Business for 2003 looks good. That’s what DPWN executives are out saying.
     Focus is on systems and stream- lining, as DPWN moves to simplify its products and price structure.
     Little question that know-how is the link between all the forces that DPWN brings to the fore.
     Mail, Logistics, Express and Finance are all distinct operating forces within DPWN.
     But the thing about this company is that with all of its enterprises in concert once again, as often happens, history repeats itself.
     The world’s first postal service becomes the first true world-class total transportation and logistics company of the 21st century.
     Somewhere, Franz von Taxis is thinking, ‘that is only right.’