Category Archives: Aviation

UPS is making a strategic investment between $15- 20 million to expand its network of technology centres to India. These centres will complement UPS’s existing technology teams in the U.S. and Europe responsible for in-house technology development – the solutions that make UPS a world-class logistics provider with the best digital customer experience. UPS is committed to domestic job creation through these centres and aims to hire around 1,000 employees by the end of 2025. The first centre will open in Chennai by mid-2023, with additional locations to follow. UPS is rapidly expanding its presence in India with recent investments including: o In 2022, UPS strengthened its network with the opening of a second dedicated airport gateway in Bengaluru o Combined with its largest facility in India at Delhi airport, UPS has doubled export and import handling capacity o UPS also launched MOVIN Express for India’s domestic logistics market, in partnership with InterGlobe Enterprises o MOVIN combines the strength and synergies of UPS’s global network and it’s 115 years of experience in logistics with InterGlobe’s deep understanding of India’s domestic aviation and hospitality market o In less than a year, MOVIN Express has expanded to 49 cities and 3000 pin codes in India On the occasion of the announcement, Bala Subramanian, UPS EVP & Chief Digital and Technology Officer said: “UPS is committed to India and these centres represent our latest strategic investment in a leading economy that we see growing significantly in the coming years. Through these centres, we’re supporting domestic job creation and advancing skill sets through training and development.”

FedEx has announced plans to open its first Advanced Capability Community (ACC) in Hyderabad, India in 2023. The opening is part of a broader multi-year initiative to strengthen the recruitment and development of the company’s diverse workforce all around the world and build a more efficient and agile organization to enhance how we deliver for our customers. FedEx plans to set up ACCs in different parts of the world in the future. Locations will be selected based on business needs and access to highly skilled talent pools. Each community is planned to be staffed by full-time FedEx team members across many functional areas who will provide shared services to support the technological and digital requirements of the entire FedEx enterprise. The digital innovation these communities will provide will enable the company to provide even greater value in the global supply chain ecosystem. The Indian government’s focus on providing world-class infrastructure to build a technology-driven and knowledge-based economy makes the country an ideal location for the first ACC. The first ACC will be situated in Hyderabad and is anticipated to launch in the second half of 2023. The state of Telangana and its capital, Hyderabad, has been focusing on its engineering and digital enterprise talent pool to support international organizations that want to set up a presence here. “FedEx is creating the world’s most flexible, efficient, and intelligent supply chain for our customers,” said Raj Subramaniam, FedEx Corp. president and chief executive officer. “The opening of our first Advanced Capability Community in India, a critical market for FedEx, will enable us to be faster, more flexible, and secure as we innovate digitally. This move supports our long-term vision to grow our …

Cargojet, the all-cargo Canadian carrier, has decided to complete the sale of two Boeing 777-300 aircraft for $53.5 million by early Q22023. “Due to the recent slowdown in the global economy, the company plans to defer the induction of the B777-300 fleet and maintain its financial strength. The B777-300 disposal has no impact on the current operations as the fleet expansion was to expand international reach,” says the management discussion note issued after the announcement of Q42022 and full-year 2022 results. Cargojet reported a 29 percent increase in revenue at C$980 million ($715 million) while EBITDA was up 14 percent at C$396 million ($289 million). Net earnings increased 14 percent to C$191 million ($139 million). For Q42022, revenue increased 13 percent to C$267 million YoY and net earnings dropped over 97 percent to C$2.6 million. “Over the past several years, Cargojet has evolved its business model that is increasingly based on strategic partnerships rather than transactional relationships with its customers,” says Ajay Virmani, President and CEO, Cargojet. “By aligning our long-term commercial interests, we expect greater endurance of volumes with our strategic customers even if global volumes soften during a recessionary period. “The continued global increase in e-commerce demand has produced strong growth in our domestic and ACMI business segments during the quarter. We continue to monitor various macro risks including a potential recession, which may have an impact on consumer spending. As such, Cargojet continues to carefully manage its strategy to match the capacity required with actual customer demand.”

NYK has entered into an agreement to transfer all shares in B747 freighter operator Nippon Cargo Airlines (NCA) to All Nippon Airways Holdings (ANA). The shipping group said that it had made the decision due to the ongoing cost of running the cargo airline. “The continuous introduction of new aircraft to expand the operation and maintenance system, and the continuous training of personnel engaged in operation and maintenance required a considerable expenditure,” NYK said. “In the highly volatile business environment of airfreight transportation, NCA has been facing challenges in expanding its business scale at a level that is commensurate with such costs.” For ANA, the deal will “dramatically enhance its international air cargo network” and products and services based in Japan and also with the aim to contribute to the development of global economic activities both in Japan and abroad. “In order for NCA to achieve further growth and increase corporate value from a long-term perspective which includes environmental responsiveness, we believe that it is the best option to transfer shares of NCA to [ANA] which operates the same business, and has been providing NCA with cooperative relation to strengthen its maintenance system,” NYK added. The terms of the deal are still under discussion but both parties hope to finalise the transaction by October 1. NCA currently operates a fleet of eight B747-8 freighter aircraft and owns five B747-400 freighters that are operated by ASL and Atlas Air.

Industry-wide cargo tonne-kilometres (CTKs) fell 14.9 percent YoY in January 2023, marking the 11th month of consecutive annual decline in global demand, according to the latest update from the International Air Transport Association (IATA). “Compared with January 2019 cargo traffic, industry CTKs contracted by 11 percent. Seasonally adjusted (SA) air cargo traffic decreased by 10.9 percent YoY, albeit with a 2 percent increase from December 2022.” International CTKs declined slightly faster, registering a 16.2 percent YoY decline in January. Cargo capacity – measured by available cargo tonne-kilometres (ACTKs) – increased 3.9 percent YoY in January, “reflecting the strong recovery of belly cargo capacity in passenger airline markets. Cargo load factors stood at 44.8 percent.” This was the first YoY growth in capacity since October 2022. The outlook for the air cargo industry in 2023 is expected to be challenging, says the update. “Multiple macroeconomic headwinds stemming from the global pandemic persist and the on-going war in Ukraine has disrupted important trade flows and economic activity across various regions.”

Qatar Airways Cargo celebrated a landmark flight as its scheduled Boeing 777 freighter from Doha to Shanghai was operated entirely by a crew made up of women. From the ground staff overseeing and handling the cargo to the flight deck crew operating the flight, this is the first time a Qatar Airways Cargo freighter aircraft has operated with an all-female crew and all-female ground staff. Captain Sarah Abigail Comerford from the United Kingdom, First Officer Edith Mala Diop from France, and First Officer Hedfa Mohammed Al Marri from Qatar operated the flight. The Boeing 777 freighter departed from Doha with 100 tonnes of cargo destined for Shanghai. Guillaume Halleux, Chief Officer of Cargo at Qatar Airways Cargo said, “I am proud to have such a diverse workforce within Qatar Airways Cargo. We are committed to promoting gender diversity and that women are equally represented in our workforce, which is why we can proudly say we have almost 50 percent of women in various age groups and roles working globally for Qatar Airways Cargo.”

The Asia-Europe trade lane has been buffeted by weakening demand and the outbreak of war in Ukraine over the last 12 months but there are some opportunities to be found. Air cargo capacity on the Asia-Europe route increased marginally (+3%) from the fourth quarter of 2021 to fourth quarter of 2022, but still remains about 18% below pre-pandemic levels, according to the ocean and airfreight rate benchmarking platform Xeneta. This drop is also reflected in the balance with freighter cargo, with bellyhold freight making up just 32% of market share, compared to 55% before the pandemic, says Niall van de Wouw, chief airfreight officer, Xeneta. The stricter Covid rules and lockdowns in China have slowed the return of passenger flights between Europe and Asia “so we don’t see the same level of recovery as we do on the transatlantic for instance”. Russia’s invasion of Ukraine has also affected the route, especially into north east (NE) Asia where flights have traditionally flown over Russia. “We saw prices on Europe – NE Asia route go up very quickly. There was an immediate boost in airfreight rates within a matter of weeks of the war starting,” says van de Wouw. “No doubt higher fuel prices were also a factor, but it is difficult to single out the cost of fuel on its own. And we also saw airline casualties, for instance” He says that rates are now declining but that Asia-Europe rates are declining more slowly than on the Asia-US route. It is notable that in fourth quarter 2022, the spot market accounted for 47% of Asia–Europe volumes. It was 42% in quarter four 2021 and about 33% pre-pandemic.

South African Airways (SAA) Cargo has teamed up with Menzies Aviation to provide air cargo services at OR Tambo International Airport (JNB) in Johannesburg, Cape Town International Airport (CPT) and Port Elizabeth International Airport (PLZ). “The first phase of Menzies’ appointment started on December 1, 2022 with the handling of all SAA cargo terminal operations in Cape Town. The second phase will begin at OR Tambo in the coming weeks,” says an official release from Menzies. The appointment of Menzies followed a rigorous procurement process and is part of the on-going restructuring process that SAA is implementing post-business Rescue, the release added. “This milestone is an important one,” says John Lamola, Chairperson and Chief Executive Officer, SAA. “It is part of our efforts to re-position SAA Cargo and unlock the value of SAA Cargo terminals. It also allows management to focus on critical strategic goals to grow our cargo business.” Philipp Joeinig, CEO, Menzies Aviation adds: “The partnership with SAA aligns with the strategy to grow Menzies’ footprint in Africa where we see huge potential for growth. SAA is an important player in the cargo industry and this partnership is a real game changer for our business in South Africa as we are now based in the largest air cargo facilities in the country in the two main air freight ports. It also aligns with our long-term vision to strengthen our position as the leading aviation services provider in Africa.” SAA Cargo and Menzies are undertaking renovations of the terminals at OR Tambo, Cape Town, and Port Elizabeth with sustainability in mind. Investing in electric vehicles and ground service equipment, solar energy, energy efficient lighting and a full recycling programme …

Etihad Cargo has introduced online pet shipment bookings for dogs and cats, online dangerous goods bookings and a custom feed within the customer dashboard of its online booking portal. Traditionally, booking pet shipments has required customers to send multiple documents via email. Following the launch of the online pet shipment booking feature, Etihad Cargo’s customers can book the shipment of dogs and cats via the online booking portal, making the booking process easier than ever before. Booking the shipment of dangerous goods via the enhanced online booking portal has also been simplified. Etihad Cargo’s booking portal now enables the capture of United Nations (UN) numbers, which are globally recognised classifications that identify hazardous substances in international shipping. “Since the launch of Etihad Cargo’s enhanced online booking portal, the carrier has continued to launch new features that are making it easier for customers to make bookings,” said Martin Drew, senior vice president – global sales & cargo at Etihad Airways. “Expanding the capabilities of the booking portal to include the booking of pets and dangerous goods shipments directly via the portal is the latest step by Etihad Cargo in making the booking process as seamless as possible while helping customers to ensure the compliance of their cargo with international regulations.”

Singapore’s Changi Airport Group (CAG) has strengthened its alliance with Brussels Airport Company (BAC) in Belgium to improve gloabl air cargo operations. The firms reached a memorandum of understanding (MoU) in this regard, with plans to improve pharmaceutical logistics capabilities and share their best practices. They also intend to perform studies and trials related to digitalisation and sustainability. CAG Air Hub and Cargo Development executive vice-president Lim Ching Kiat said: “The industry has witnessed how the Covid-19 pandemic has transformed the air cargo supply chain. More than ever, handling capabilities are key to the competitiveness of the air cargo ecosystem. “As CAG pushes forward with our digitalisation efforts to enhance Changi Airport’s air cargo processes for higher handling efficiency, we look forward to exchanging insights and learning from Brussels Airport and Air Cargo Belgium.” In addition, the companies will focus on a Green Air Pharma Corridor study, which will be conducted in collaboration with other Pharma.Aero members. A non-profit organisation, Pharma.Aero was one of the initial joint initiatives of BAC and CAG, who have partnered on several projects since 2016. Pharma.Aero members share best practices to boost the industry’s pharmaceutical handling capabilities. Additionally, CAG and BAC will work alongside to improve passenger and cargo connectivity between Singapore and Brussels. BAC chief cargo and real estate officer Geert Aerts said: “We are happy to sign this memorandum of understanding with Changi Airport and to further enhance our longstanding partnership. “By exchanging expertise and building on our alliance to tackle the challenges and opportunities of today together, we can leverage the best practices and become more interconnected between our hubs.”