Category Archives: Aviation

Recording a 26-months high in cargo tonnage, Kempegowda International Airport, Bengaluru (BLR Airport/ KIAB) has processed 34,339 Metric Tonnes of cargo in October 2020. The Airport has witnessed a highest-ever domestic outbound tonnage of 8,117 MT in October, largely driven by e-commerce shipments. Perishable commodities, which have been the major growth driver for BLR Airport in FY 2020-21, continued to be the top international commodity, accounting for 12 per cent of total exports in October. Doha emerged as the top destination in October 2020, with 1,095 MT. After becoming the first airport in India to record positive growth in September 2020, the trend continued in October 2020 as well, registering a 0.1 % increase against October 2019. The record single-day Air Traffic Movement (ATM) was 52 ATMs on October 22, with the day witnessing a volume of 1,359 MT of Cargo.

Chapman Freeborn has successfully handled an unusual heavy and outsize cargo operation in Australia. The cargo was manufactured in Germany and sent to Australia on an expedited basis due to the high value and importance of the consignment. The shipment, weighing 92 tonnes in total, consisted of exceptionally large pieces that were 15 metres in length and weighed 17 tonnes each. Because of the over-dimensional length of the cargo, a nose loader was required and a full Boeing 747-400 freighter was used for transportation. Before acceptance onto the aircraft, the cargo was load planned for maximum centre of gravity flight efficiency with both the main and lower decks being used. The cargo itself was restrained by placing high quantity straps into the crates and directly over the cargo to achieve the load plan requirements. To ensure the smooth and quick operation, external equipment comprising two main deck loaders and two cranes was used to load and offload the cargo and the visitor permits were arranged for the trucks to receive the cargo direct on the apron. The consignment bypassed the terminal in Australia by exiting the airport through the emergency access gate and it was organised that the Customs Authority would clear the consignment electronically.

While announcing the revised outlook for airline industry performance in 2020 and 2021, the International Air Transport Association (IATA) states, operational parameters for cargo are performing significantly better than for passenger but are still depressed compared to 2019. Uplift is expected to be 54.2 million tonnes in 2019, down from 61.3 million tonnes in 2019. Cargo revenues are bucking the trend, increasing to $117.7 billion in 2020 from $102.4 billion in 2019. A 45 per cent fall in overall capacity, driven largely by the precipitous fall in passenger demand which took out critical belly capacity for cargo (-24 per cent), pushed yields up by 30 per cent in 2020. In 2019 cargo accounted for 12% of revenues and that is expected to grow to 36% in 2020. “Cargo is performing better than the passenger business. It could not, however, make up for the fall in passenger revenue. But it has become a significantly larger part of airline revenues and cargo revenues are making it possible for airlines to sustain their skeleton international networks,” said Alexandre de Juniac, Director General and CEO. IATA. The cargo side of the business is expected to continue with strong performance. Improved business confidence and the important role that air cargo should play in vaccine distribution is expected to see cargo volumes grow to 61.2 million tonnes (up from 54.2 million tonnes in 2020 and essentially matching the 61.3 million tonnes carried in 2019). A continued capacity crunch due to the slow reintroduction of belly capacity from passenger services combined with a higher proportion of time and temperature sensitive cargo (vaccines) will see a further 5 per cent increase in yields. This will contribute to strong …

CBIC has recently issued revised policy and guidelines for setting up of new Container Freight Stations (CFSs), Inland Container Depots (ICDs) and Air Freight Stations (AFSs). Sharing his views on the policy, Vipin Vohra, Chairman, Continental Carriers, says, “The idea behind the revised guidelines for setting up of ICDs, CFSs and AFSs must be for all the good reasons, but, has no relevance as AFSs are still non-operational despite the fact that the policy was announced way back in 2014. The purpose of AFS was to increase air cargo volumes by decongesting the air cargo terminals at the international gateway airports, thereby reducing air logistics costs for companies engaged in foreign trade.” “Today, when everyone is gearing up for COVID vaccine delivery management, we are still not sure about the future of AFS and facing unnecessary hurdles and roadblocks in making it operational, interestingly, in other countries the concept of off-airport cargo handling is successfully in practice for decades. AFS is an innovative solution that would decongest air terminals and help in cargo management and will certainly give easy space for vaccine logistics management. Air freight stations, close to manufacturing industry, are need of the hour and an essential step towards Hon’ble Prime Minister’s ambitious Make in India’ scheme. To make these new guidelines effective it is important to resolve pending issues related to Air Freight Station Policy. Continental Carriers, which has invested heavily on AFS since 2016, is still waiting for the clearance on fixation of TSP charges by AERA and compliance from Airport Terminal Operator for built-up cargo and loose cargo. The prime objective of concerning authorities should be to resolve issues pertaining to implementation of AFS policy …

Ethiopian Cargo has launched a transpacific freighter service between South Korea and the US. The air cargo carrier operates B777-200F, one of the most technologically advanced aircraft on the route, offering a remarkable freight service to our cargo forwarding customers worldwide with reduced flight hour, seamless connectivity and better payload. The new B777F service operates from Incheon to Atlanta via Anchorage, with its first flight took place on November 9. Tewolde GebreMariam, Chief Executive, Ethiopian Group says, “We are delighted to have launched our newest freighter service to our cargo forwarder customers worldwide, extending from Incheon to Atlanta via Anchorage in the current global pandemic crisis where speed in the supply chain management is highly required to deliver urgently required goods.”

Pharma.Aero has enlarged its membership base with three new full members – Dubai-based logistics and transportation services company First Priority Cargo, global 4PL BDP International and Lima-based ground handler SAASA (Servicios Aeroportuarios Andinos S.A). Over the course of the last two months, Pharma.Aero has onboarded a total of 8 new members. Jeremy Mitchell, Director, Pharma.Aero adds, “The membership of Pharma.Aero continues to grow with like-minded logistics companies. First Priority Cargo has been a long-time partner of Sharjah Airport. We are delighted that First Priority is becoming a member of Pharma.Aero, a testament towards the growing significance of pharma at Sharjah Airport. Pharma.Aero also welcomes BDP International, which has been providing global logistics services for the Pharma industry for decades and SAASA, which provides handling & storage of pharma shipments. The joining of SAASA enlarges our network in South America. We look forward to the new collaborations that could emerge between these new members and our existing members.” Ditlip Sitlani, Vice President, Business Intelligence & Operations, First Priority Cargo said, “We strive to be the best in customer service and pharma safety is an important part of the end to end journey. We are pleased to join a collaborative organisation which understands the care and responsibilities we should all have in this industry. We look forward to adding value and sharing of our thoughts and new ideas with the entire Pharma.Aero membership.” Simona Ravera, Director of Sales, EMEA LifeSciences & Healthcare, Business Development Solutions, BDP International shares, “Following our long term strategic plan and initiatives related to the LifeSciences & Healthcare industry such as to build around customer needs and service models in end-to-end pharmaceutical logistics, BDP International is happy to …

Leveraging its expertise in innovation and customer centricity, Blue Dart part of the Deutsche Post DHL Group (DPDHL), has launched its first ever consumer app, the ‘My Blue Dart App’ to provide tailored solutions and act as a one stop shop for customers ‘on-the-go’. The ‘My Blue Dart App’ is currently available on Google Play and Apple Store. Manoj Madhavan, CIO, Blue Dart, said “Blue Dart has constantly augmented customer experience while always ensuring timely and seamless deliveries across the nation. The app re-emphasizes our commitment and strengthens our value proposition. Our user-friendly, secure and reliable mobile application will now allow customers to track their shipment, locate the nearest Blue Dart store or find out the best pricing anywhere and at any time all at the click of a button, through the app. With comprehensive features and ease of use, the app will be an ideal platform for our customers to fulfill all their logistics requirements.” Ketan Kulkarni, CMO & Head – Business Development, Blue Dart, comments, “Customer centricity has always been the bedrock of our foundation. The app is a step forward in leveraging the use of technology to enhance customer experience. Blue Dart has successfully steered through all testing times of business and has sustainably created value for all its stakeholders. We are extremely happy to mark this milestone, especially on the occasion of our 37th Anniversary. Our journey through the highs of digitisation has been a long one, having pioneered many an initiative. It is also a testimony of the gold standard that Blue Dart, as part of the DPDHL Group, has set for itself by aligning itself with the Group’s ‘Strategy 2025 – Delivering Excellence in …

Continuing its contributions for the sustainability of the global supply chain by building a global air cargo bridge all across the globe with its cargo flights, Turkish Cargo started to carry COVID-19 vaccines with its strong fleet, wide flight network and special cargo service quality. Offering service to 127 countries around the world, Turkish Cargo carried the COVID-19 vaccines, manufactured in China, to Brazil which is at a flight distance of approximately 17 thousand kilometers. The COVID-19 vaccines, loaded inside 7 containers equipped with dedicated cooling systems, were transported safely from Beijing to Sao Paulo, the biggest city of the South America, with a connection flight at Istanbul. By carrying pharmaceuticals to the key and certificated destinations such as Mumbai, Brussels, Istanbul, Singapore, Dubai, Basel, London and Amsterdam, Turkish Cargo created a global pharmaceutical corridor between more than 400 destinations and maintains its commitment for transporting the COVID-19 vaccines that are ready or being developed. Holding the IATA CEIV (Center of Excellence for Independent Validators) pharma certificate, Turkish Cargo, maintains the cold chain at the optimal conditions thanks to the ‘TK Pharma’ product which was has designed for carrying pharmaceuticals at global standards. Transporting pharmaceuticals all across the global in great numbers during the course of the pandemic, the successful brand carried more than 40 thousand tonnes of pharmaceuticals, medical products and medical equipment between January and September, and reported a growth over 50 percent for the pharmaceutical shipments during the same period. Turkish Cargo provided a capacity increase for the COVID-19 vaccine shipments In order to satisfy the increased demand for transportation of the vaccines, pharmaceuticals and temperature-controlled cargo, Turkish Cargo commissioned the temperature-controlled smart warehouse with an additional …

The International Air Transport Association (IATA) has released the weekly economics’ chart showing the estimated economics of an average B777-300 operation on Transatlantic, under market conditions Pre-COVID-19 versus during COVID-19 (Mar-Aug 2020). This week’s chart explores how the economics of such flights have evolved compared to before COVID-19. The association has modelled a typical North Atlantic operation with a B777-300 aircraft, assuming the market conditions before and during the pandemic. According to this this week’s chart, the average flight is almost able to cover its flight-specific operating costs (loss of US$ 2,000). This is in large part thanks to cargo revenues that now play a more important role than previously, accounting for 41 per cent of revenues vs. 9 per cent. However, the model also suggests that covering the non-flight specific fixed costs would be challenging with such low loads. This is all the more concerning as airlines need to spread those costs across their entire fleet, much of which is currently grounded or at least vastly under-utilised. The main assumptions of the model are that passenger load factors drop to the average that airlines have reported in recent months, whilst cargo load factors as well as yields increase as a result of the shrinkage of belly capacity in the market. Fuel costs are also adjusted to reflect the recent prices. It is worth noting that the above simulation is not necessarily representative of all routes and aircraft. Demand for cargo varies largely between route areas with most demand for cargo from Asia to the rest of the world and the B777-300 is an aircraft with one of the largest belly capacities. Depending on the size of the belly and …

According to ICRA Ratings, air cargo volumes are expected to decline by 17-20 per cent in FY21 with meaningful recovery in cargo volumes expected only in FY22. Anupama Arora, Vice President and Sector Head, ICRA Ratings, says, “Despite faster ramp-up, the total cargo volumes declined by 45 per cent YoY in H1 FY2021, with slow recovery in passenger aircraft traffic leading to loss of the earlier available cargo belly space constraining cargo growth.” “In October 2020, the cargo volumes are likely to show significant improvement sequentially owing to the expected higher domestic air traffic movement due to the festival season.” As per the report, the cargo volumes in September 2020 reached to 89 per cent of pre-COVID levels when compared to passenger traffic at 29 per cent. Besides, the ratings agency cited that on the supply side, airlines adopted cargo on seats and dedicated freighters to meet demand while there was inherent fear to travel during Covid-19 pandemic amongst business and leisure travellers – the major contributors to passenger traffic historically, which kept travel demand subdued. “The domestic cargo volumes witnessed significant improvement to 94,598 tonnes in September 2020 from 7,280 tonnes in April 2020. The ramp up in domestic cargo transportation in aircraft bellies of commercial passenger flights aided volume growth. With the restrictions on the passenger capacity, domestic airlines followed ‘cargo-on-seats’ model thereby utilising some aircrafts of their grounded fleet for cargo operations.” Besides, the report pointed out that airports in metro cities have contributed to around 90 per cent of the overall cargo traffic over the last few years. “While the recovery has been faster in metros with Delhi, Bengaluru, Chennai and Hyderabad reaching closer to pre-Covid …