December, 2006

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December, 2006 CoverINT 11/22/06 3:08 PM Page 1 WWW.AIRCARGOWORLD.COM DECEMBER 2006 INTERNATIONAL EDITION Review/Outlook Staged for Expansion 2006/2007 Latin America • Security • Air France-KLM Project1 10/10/06 11:54 AM Page 1 ALITALIA WITH A NEW DEDICATED FLEET AND 30 WEEKLY DIRECT FLIGHTS TO CHINA, CARGO. INDIA, NORTH AMERICA AND AFRICA WE TAKE CARE OF YOUR AIR SHIPMENTS: THE WORLD THEY WILL ARRIVE AT DESTINATION MOVES FASTER AND MORE EFFICIENTLY. WITH US. LET YOUR CARGO MOVE WITH US. OUR NEW SCHEDULE OF DIRECT FLIGHTS WILL IMPROVE THE TIMING OF YOUR AIR SHIPMENTS. FOR FURTHER INFORMATION: LOCAL CUSTOMER SERVICE, WWW.ALITALIACARGO.COM 01TOCINT 11/22/06 2:52 PM Page 1 INTERNATIONAL EDITION December 2006 CONTENTS Volume 9, Number 10 COLUMNS 10 North America 2006 In The TSA extended its com- pliance deadlines for portions of Review the cargo security rule and the The air cargo industry industry is grateful, if still con- had a far better year in 2006 fused on what’s expected of it than it did the previous year and 2007 is expected to be even better. 14 Europe The Air France-KLM partner- ship is on track, but the cargo- carrying couple continues to fret over market share 16 Pacific Airlines are looking for joint ventures to tap into China’s lu- crative cargo market but finding 22 the right partner is not easy Slowing the Fleet Latin America may not be the next great air cargo DEPARTMENTS market, but air carriers’ slow growth approach seems to 2 Edit Note work for now. 4 News Updates 35 Events 36 People 38 The Bottom Line 40 Forwarder’s Forum 40 Cover photo by WWW.aircargoworld.com Air Cargo World Air Cargo World (ISSN 0745-5100) is published monthly by Commonwealth Business Media. Editorial and production offices are at 1270 National Press Building, Washington, DC, 20045, USA. Telephone: (202) 355-1172. Air Cargo World is a registered trademark of Commonwealth Business Media. ©2006. Periodicals postage paid at Newark, NJ and at additional mailing offices. Subscription rates: 1 year, $58; 2 year $92; outside USA surface mail/1 year $78; 2 year $132; outside US air mail/1 year $118; 2 year $212. Single copies $10. Express Delivery Guide, Carrier Guide, Freight Forwarder Directory and Airport Directory single copies $14.95 domestic; $21.95 overseas. Microfilm copies are available from University Microfilms, 300 North Zeeb Road, Ann Arbor, MI 48106, USA. Opinions expressed by authors and contributors are not necessarily those of the editors or publisher. Articles may not be reproduced in whole or part without the express written permission of the publisher. Air Cargo World is not responsible for unsolicited manuscripts, photographs or artwork. Please enclose a self- addressed envelope to guarantee that materials will be returned. Authorization to photocopy items for internal or personal use is granted by Air Cargo World, provided the base fee of $3 per page is paid directly to Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, USA, and provided the number of copies is less than 100. For authorization, contact CCC at (508) 750-8400. The Transactional Reporting Service fee code is: 0745-5100/96/$3.00. For those seeking 100 or more copies, please contact the magazine directly. POSTMASTER and subscriber services: Call or write to Air Cargo World, Customer Care Department, 400 Windsor Corporate Park, 50 Millstone Rd., Suite 200, East Windsor, NJ 08520-1415, USA; telephone (888) 215-6084 December 2006 AirCargoWorld 1 02EditorialINT 11/22/06 2:31 PM Page 2 Editor’s Note International Trends & Analysis Editor Paul Page • [email protected] Managing Editor Robert Moorman • [email protected] Contributing Editors Roger Turney, Ian Putzger Mike Seemuth Art & Production Director Jay Sevidal • [email protected] Editorial Offices 1270 National Press Bldg., Washington, DC 20045 Double or Nothing (202) 355-1170 • Fax: (202) 355-1171 PUBLISHER Steve Prince • (770) 642-9170 • [email protected] S Airways CEO Doug Parker is a skilled and unpredictable Advertising/Business Office gambler. The acquisition in 2005 of the tired and broke US 1080 Holcomb Bridge Rd. • Roswell Summit Building 200, Suite 255 • Roswell, GA 30076 UAirways by the significantly smaller America West, the air- (770) 642-9170 • Fax: (770) 642-9982 line Parker has led since late 2001, certainly demonstrates his Assistant to Publisher playing ability. Susan Addy • [email protected] International Advertising Offices Parker is now betting US Airways $8.7 billion hostile bid to take over bank- Europe, United Kingdom, Middle East David Collison • +44 192-381-7731 rupt Delta Air Lines will make the combined airlines a global competitive [email protected] Japan force. The acquisition could also trigger the long-predicted wave of U.S. airline Masami Shimazaki • +81-3-5456-8230 [email protected] consolidations, perhaps even taking in some all-cargo carriers. Thailand Chower Narula • +66-2-641-26938 Many industry analysts believe Parker’s bold move will succeed; the timing is [email protected] Taiwan right, they say. But Parker may have dealt himself a hand he not only can’t win, Ye Chang • +886 2-2378-2471 [email protected] but also could damage the ongoing integration of America West and US Airways, Australia, New Zealand Fergus Maclagan • +61-2-9460-4560 which won’t be completed until the second quarter of 2007. [email protected] Sri Lanka There are numerous hurdles over which Parker must leap Jaiza Razik • +94-133-3424 [email protected] before he gets to again rename the airline, this time to Delta, Korea Mr. Jung-won Suh • +82-2-3275-5969 from US Airways, which used to be America West. Got that? [email protected] Unlike the old US Airways, which was begging to be Classified Advertising and Reprints Tamara Rodrigues • [email protected] bought, Delta Chief Executive Gerald Grinstein is strongly op- (770) 642-8036 posed to the idea and could team up with the unionized Delta Display Advertising Traffic Coordinator pilots to fight the takeover. Tracey Fiuza • [email protected] (973) 848-7106 The strong opposition to US Airways’ offer by Delta manage- Electronic Rights and Syndication ment and various labor groups is only part of the problem for Barbara Ross • [email protected] (973) 848-7186 Parker and Co. In addition, there are serious anti-competitive CUSTOMER SERVICE OR TO SUBSCRIBE: ( concerns about such a merger. 888) 215-6084 Consider what Parker is proposing. The merger of US Airways, America West and Delta will create the largest U.S. airline, controlling 26.5 percent of all U.S. domestic seats, according to BACK Aviation Solutions. Parker needs to finish one hand before the other is dealt. The integration of America West and US Airways – two carriers with vastly different operating 400 Windsor Corporate Park 50 Millstone Rd., Suite 200 methodologies and cultures — is far from complete. Yet, Parker wants to East Windsor, NJ 08520-1415 (609) 371-7700 • (800) 221-5488 march through Atlanta and take over another airline with a different culture, President and CEO Alan Glass fleet type and operating philosophy. Senior Vice President, CFO Dana Price The complexity and difficulty of combining three carriers, coupled with reg- Vice President, Magazine Group Peter Tirschwell Group Publisher Noreen Murray ulatory and political issues to consider should prompt the gambler to take his President, PIERS Brendan McCahill winnings and walk away. Vice President, Directory Databases Amy Middlebrook For the cargo industry, the belly cargo contribution that both US Airways Vice President, Human Resources Kenneth P. Slivken Vice President, and Delta provide to the bottom line will remain about the same combined as Production & Manufacturing Meg Palladino before, say analysts. Yet this proposal could be a seminal event in the develop- Director of Circulation John Wengler ment of air transportation in the near future. And that will have a large im- Director of Creative Services John White President, BACK Aviation Steven G. Casley pact on the cargo industry. POSTMASTER: Send address change to: Air Cargo World, 400 Windsor Corporate Park, 50 Millstone Road, Suite 200, East Windsor, NJ 08520-1415.© 2006 Commonwealth Business Media Inc. — All Rights Reserved For more information visit our website at www.aircargoworld.com 2 AirCargoWorld December 2006 Project1 11/10/06 10:37 AM Page 1 04NewsUpdateINT 11/22/06 3:06 PM Page 4 UpdatesNews straw poll of customers that could presage a shutdown. “We’re still go- ing ahead. The freighter program hasn’t been cancelled,” said Airbus spokesman Justin Dubon in Toulouse. The FedEx move on the A380-800 will reverberate in the plans for the passenger editions because, industry officials say, Airbus was using the freighter as the base for its follow-on A380-900. Airbus may be wondering if the plane gets that far. Emirates last month canceled its orders for 10 A340-600 passenger aircraft and going with Boeing aircraft instead, a move seen across the industry as a warning that Emirates’ patience on its order for 45 A380 passenger Airbus Has Superjumbo Problems planes is limited. FedEx’s order for the 777s, mean- he landing of an Airbus A380 in the Chinese city of time, gives a glimpse of FedEx’s long- Guangzhou last month on a test flight had all the trappings term plans for international express of gala event. But it came a full month after Airbus was service. “Ordering the 777 freighter Toriginally going to deliver a fully tested and ready to fly says that range still matters, but huge A380 to Singapore Airlines. And the test plane’s path on landing capacity may not in the express busi- took it past a starker reminder of Airbus’ troubles, the site of the ness,” said Hamlin.
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