Category Archives: Aviation

“After COVID-19 hit, we began cargo-only charters, initially using just the belly of our passenger aircraft, then expanding into ‘cargo-on-seat’ operations, after we received the necessary approvals, and later added a ‘cargo-on-floor’ A321. Hence, we have initiated a proper freighter program and are in the process of sourcing 4 A321CEO aircraft for conversion. The A321P2F—passenger-to-freighter conversion—is the narrow-bodied all-cargo aircraft available, offering 24 ULD positions and supporting a payload of up to 27 tonnes. We expect our first delivery in this month, coming from the conversion shop at Singapore Technologies. The aircraft is capable for IndiGo and able to service markets between China in the east and the Gulf in the west, not forgetting the CIS countries to the north,” said Mahesh Malik, Chief Commercial Officer, CarGo, IndiGo.

The rising cost of fuel has been an issue of concern for the aviation industry throughout 2022, but air cargo carriers have tackled the challenge successfully. Expensive fuel is not a new phenomenon, however, a perfect storm of economic and political issues has seen prices continue to rise this year until they flattened out in early July, as per S&P Global data shared by IATA. In February, against a backdrop of strong demand for still limited capacity due to the pandemic, the Ukraine-Russia war forced airlines to fly longer routes to avoid Russia-Ukraine airspace and increase their fuel usage, and now inflation is rising around the world. The latest data from the joint Platts – IATA Jet Fuel Price Monitor shows the jet fuel price for the week ending July 15 was up 85.7 per cent compared with a year ago at $146.4/bbl. The jet fuel price average for 2022 at the time of writing (year to date) is US$ 143.6/bbl. The impact of jet fuel price developments on 2022’s industry total fuel bill is US$ 134.3 billion.

As per a recent Airforwarders’ Association survey, while the air cargo business is decelerating after one of the industry’s strongest years ever, volumes remain robust, while many forecast the first half of 2023 to be relatively positive. Forecasts indicate airfreight will account for 25 per cent of airline revenue, especially after passenger revenue has been impacted during the ongoing pandemic. The positive outlook is tempered by existing global and macroeconomic challenges that could change the current prosperity wave, but freight forwarders remain prepared for what may lie ahead, stated the survey. They expect an early peak season as companies rush to deliver shipments trapped by the COVID-19-related lockdowns in China. Some freight forwarders anticipate this concern to result in an upsurge of air cargo shipments from Asia to the US as customers seek to avoid potential maritime bottlenecks. Main concern is the availability of capacity since most passenger flights from Asia, including their belly capacity, remain grounded.

Lufthansa Cargo is now offering Envirotainer’s Releye RAP temperature-controlled container to firms transporting pharmaceuticals. Envirotainer launched the RAP version of its Releye container in February, and the first commercial shipment using the said container was in March. The RAP version of the Releye container is the largest model of the container and can hold five pallets, compared with the existing 2021 model’s three pallets. “With the integration of this container, the carrier is committed to provide its customers with first-class products and services and to drive innovation,” said a statement from Lufthansa Cargo. “We would like to thank Envirotainer for their long-standing cooperation, which enabled us to expand and improve our offering for the pharma industry and temperature-sensitive goods.”

Board of Airline Representatives in Germany (BARIG) continues to strengthen its commitment to air cargo industry and supports the development of cargo and logistics, with the re-election of Michael Hoppe, BARIG chairman and executive director of the ‘airlines’ segment. He represents the interests of 100 national and global – passenger and cargo – airlines operating in Germany. Hoppe is a founding team member of the ACCF and has been engaged in the community since 2014. The re-election was done during the recent general assembly, ACCF. Cooperation and exchange among the different stakeholders have never been more important, especially with regards to the current bottlenecks in airport ops and handling services. Air cargo and logistics have demonstrated their central, system-critical significance for the economy in the society and needs to be improved. Only through good collaboration, the challenges can be overcome, said a BARIG statement. “Within the cargo community, we need to work to address effectively the contemporary lack of resources and disruptions in logistics processes and supply chains,” Hoppe said. “Our BARIG member airlines aim to drive forward important cargo-related topics and, as part of the executive board, we need to advance and stabilize ops in Frankfurt, Germany, and the world.”

Air Canada Cargo has further expanded its fleet with the acquisition of two factory-built Boeing 777 freighters, to enter service in 2024. The “investment” in long range-wide body freighters, combined with our growing 767 freighter fleet and robust passenger network will allow us to continue to bring to life the most flexible and diverse cargo operation in the Americas,” said Jason Berry, Vice President, Cargo at Air Canada

A new report by the International Air Transport Association (IATA) said African airlines cargo volumes decreased by 1.5 per cent in May 2022 due to several factors, including geopolitical stress, caused by the ongoing Russiawar in Ukraine. Air cargo volumes in Africa decreased by 1.5% in May. Air cargo volumes in Africa decreased by 1.5 per cent in May. The IATA report also explained that global cargo tonne-kilometers was 8.3% below the level recorded in May 2021. Apparently, the war in Ukraine specifically affected cargo capacity in Europe. That is following because many Russian and Ukrainian airlines, major cargo players, were unable to haul freight during the period under review. Also, there was decrease across all markets in May with regards to new export orders, except China. And this was due to the lifting of Omicron lockdown measures.

Cargo markets in Asia-Pacific and the Middle East continued to remain robust, driven by a resurgence of air cargo volumes in China and the re-routing of Europe-Asia cargo through Middle Eastern hubs to avoid Russian airspace, as per Airports Council International (ACI) Asia-Pacific’s recent Industry Outlook. Improvements in supply chain constraints and the easing of COVID-19 curbs in China are likely to ease market conditions and drive demand for air cargo. The index based on actual cargo tonnage indicates that in Q1 2022, air cargo volumes are above Q1 2019 levels across most sub-regions. 

Turkish Cargo has been ranked fourth among the top 20 air cargo companies in the world, according to the World Air Cargo Data (WACD). Turkish Cargo’s market share was reported at 4.8 per cent, while the air cargo market shrunk by 6.9 per cent. With this success, the carrier demonstrated its determination for hitting the top, while being ranked 4th on the WACD list. Prof Dr Ahmet Bolat, Chairman, Turkish Airlines said, “The success demonstrates our commitment to make Turkey the heart of the air cargo industry in the world. Turkish Cargo’s geopolitical position and infra will lead our country to become an important player in the air cargo industry. Thus, we will realize our goal of ensuring Turkish Cargo’s place as one of the top three air cargo brands in 2025 in accordance with our plans.”

Representatives of Shell International Petroleum Co. Ltd. and Deutsche Lufthansa AG (Lufthansa Group) have signed a non-binding MoU for exploring the supply of sustainable aviation fuel (SAF) to the Lufthansa Group for seven years at airports across the globe, beginning 2024. The parties concerned contemplated negotiating towards reaching a purchase agreement with total volume reaching up to 594 million gallons.  Jan Toschka, President, Shell Aviation, said, “I am happy to see the relationship between Shell and the Lufthansa Group moving towards reaching our respective sustainability goals. It is encouraging to see large flagship carriers coming to us to discuss SAF supply deals, knowing there will be a lot of things to be defined and determined at a later stage, including established price markers. SAF is the significant way to decarbonise aviation over the decades to come.”