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November, 2006 CoverINT 10/20/06 3:48 PM Page 1 WWW.AIRCARGOWORLD.COM NOVEMBER 2006 INTERNATIONAL EDITION Tracking Shipments GloballyGlobally Middle East • Polar Air • Built-Up Pallets Project1 10/17/06 9:28 AM Page 1 01TOCINT 10/20/06 12:21 PM Page 1 INTERNATIONAL EDITION November 2006 CONTENTS Volume 9, Number 9 REGIONAL REPORTS Tracking 12 North America Tech A new fleet and IT systems 2222 Exceptions are the rule are all part of Alaska Airlines’ as far as shippers are con- multi-million dollar cargo cerned as visibility spreads makeover in the 49th state • into air cargo transport. Northern Fleet 16 Europe A deal with the devil is how some in the cargo community see Frankfurt Airport’s drive for more capacity 20 Pacific Thailand’s much maligned $4 billion airport is finally open and Middle the air freight world remains 32 East concerned Regional conflicts and volatile oil prices haven’t slowed down the world’s fastest growing air cargo market. DEPARTMENTS Pallet 2 Edit Note Packing 6 News Updates 38 More freight forwarders 42 People are building up their own pallets to maintain market 44 BACK Aircraft share, contain costs and Report combat encroachment. 46 Bottom Line 48 Events WWW.aircargoworld.com 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. Telephone: +01 (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 November 2006 AirCargoWorld 1 02EditorialINT 10/23/06 9:36 AM 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 (202) 355-1170 • Fax: (202) 355-1171 PUBLISHER Evolution Steve Prince • (770) 642-9170 • [email protected] ichael Chowdry, the late founder of Atlas Air, was a fan of the A380. A few months before his death in a plane Advertising/Business Office 1080 Holcomb Bridge Rd. • Roswell Summit crash, the man who took outsourced aircraft operations Building 200, Suite 255 • Roswell, GA 30076 M (770) 642-9170 • Fax: (770) 642-9982 to new levels in international air freight called the Airbus triple- Assistant to Publisher decker aircraft a natural evolution in aircraft design, one that pro- Susan Addy • [email protected] International Advertising Offices vided a potential 15 percent improvement in productivity. Europe, United Kingdom, Middle East David Collison • +44 192-381-7731 That wasn’t exactly the view in the airline industry back in the late 1990s when [email protected] Japan Airbus and Boeing essentially turned in different directions in their very funda- Masami Shimazaki • +81-3-5456-8230 [email protected] mental views of the future of air transport. The Airbus decision took the compa- Thailand Chower Narula • +66-2-641-26938 ny and the airline industry into uncharted economic and technological skies. [email protected] Taiwan At the time, Airbus was the avatar of air transport’s future, an agile visionary Ye Chang • +886 2-2378-2471 [email protected] team looking toward a world built on globalization and Australia, New Zealand long haul air services of unprecedented scale. Pointing to Fergus Maclagan • +61-2-9460-4560 [email protected] projections of demand for point-to-point flights and Sri Lanka Jaiza Razik • +94-133-3424 more frequencies, Boeing argued the economics of the [email protected] Korea “superjumbo” market was questionable for even one Mr. Jung-won Suh • +82-2-3275-5969 [email protected] manufacturer and carried only mutually assured destruc- Classified Advertising and Reprints tion if the two jet makers competed. Tamara Rodrigues • [email protected] (770) 642-8036 For now, at least, the economics are breaking the way Display Advertising Traffic Coordinator Boeing said they would. Tracey Fiuza • [email protected] While the troubles in the A380 program are reverber- (973) 848-7106 Electronic Rights and Syndication ating across the airline industry and into the Airbus Barbara Ross • [email protected] management, Boeing is toting up sales of 787 passenger aircraft and adding to (973) 848-7186 its orders for 747-8 freighters. CUSTOMER SERVICE OR TO SUBSCRIBE: (888) 215-6084 Meantime, the third delay in the A380 production program landed with an impact in the cargo aircraft world like, well, like a fully-loaded A380. The earli- er delays in the passenger edition of the Airbus program hadn’t really touched the freighter industry, which tends to be more interested in moving entertain- ment systems than using them. 400 Windsor Corporate Park Now, key A380 freighter customers FedEx and UPS say they are sticking 50 Millstone Rd., Suite 200 East Windsor, NJ 08520-1415 with their Airbus orders but both express carriers had decidedly chilly respons- (609) 371-7700 • (800) 221-5488 es to the latest delay announcements and both are now looking at how to fill President and CEO Alan Glass Senior Vice President, CFO Dana Price in what they are calling interim capacity gaps. Vice President, Magazine Group Peter Tirschwell But that doesn’t mean the air cargo industry won’t get those operating im- Group Publisher Noreen Murray provements Chowdry saw in the A380. What he hoped for, he told us then, President, PIERS Brendan McCahill Vice President, Directory Databases Amy Middlebrook was that Airbus’s initiative would push Boeing to respond with improvements Vice President, Human Resources Kenneth P. Slivken in its own aircraft designs. Vice President, Production & Manufacturing Meg Palladino As it turns out, Boeing did respond. That may be why Boeing’s response to Director of Circulation John Wengler the Airbus’s woes remains muted. In the long-term, the plane and its problems Director of Creative Services John White are part of an evolving story in which each manufacturer has acted and re- President, BACK Aviation Steven G. Casley sponded, and evolved. 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 November 2006 Project1 8/18/06 7:57 AM Page 1 04,05 10/18/06 7:29 PM Page 1 At the center of the Western Hemisphere. At the top in international freight. Why your cargo strategies should include MIA. A leader in the Americas in international freight and the world’s largest gateway to Latin America & the Caribbean, Miami International Airport offers the greatest north / south cargo flows in the Western Hemisphere. Handling 80% of all air imports and 77% of all exports from the Latin American / Caribbean region, MIA serves as the hub for distribution of perishable products, hi-tech commodities, telecommunications equipment, pharmaceuticals and industrial machinery. Over 90 airlines contribute to our strong two-way cargo traffic, offering optimal opportunities to link the Americas with the high growth markets in Asia, Europe, the Middle East and beyond. Exceptional infrastructure and facilitation, new runway capacity with no slots or delays, and room for growth complete MIA’s attributes. Consider One Airport for All the Americas. Contact us at MIA. 04,05 10/18/06 7:29 PM Page 2 Now More than Ever, Success Means A Full Flight MIAMI INTERNATIONAL AIRPORT One Airport for All the Americas [email protected] 06NewsUpdateINT 10/20/06 3:43 PM Page 6 UpdatesNews DHL now will have access to Po- lar’s fleet of six 747-400 freighters, as well as the 747-200s of ACMI provider Atlas. Flynn suggested in a conference call that linking with Polar could prompt DHL to cut short its agree- ment with Northwest Airlines for block space on Northwest’s trans-Pa- cific freighters before the pact’s expi- ration in October 2008. Northwest issued a prepared state- ment saying, “We will discuss with DHL how NWA will fully serve DHL during the remaining two years of the current contract, and how NWA’s unmatched Pacific network can con- tinue to enhance DHL’s business.” The DHL/Polar partnership, which is subject to legal and regulatory DHL Stakes Out Polar scrutiny, is expected to be finalized by early 2007.
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