ASIA SHIPPING NEWS July 7, 1999
Michal Douglas
* Airport Authority unveils plans to trim landing fees
* Pressure mounts for PAL assets auction
* SIA gets its man
* US-UK talks founder on BA refusal
* HACTL anniversary thumbs up for Chek Lap Kok
* Manila benefits from Northwest rates change
* Fresh look for freighter
* Freight forwarders group launched
* Privatisation the way ahead for US airports
* Emirates adds third daily London flight
* Figures show Air Macau back in the black
* US, Canada airlines' Y2K remediation "95 pc complete"
* Lower fuel costs help spur FDX 26 pc profit growth
* Argentine expansion for DHL Worldwide
Airport Authority unveils plans to trim landing fees
====================================================
IN the atmosphere of celebration surrounding the first anniversary
of the opening of Chek Lap Kok, the Airport Authority has announced
plans to lower flight landing and departure charges.
Authority chairman Victor Fung said he hoped the move would woo
more carriers.
He declined to be more specific, except to say a concrete decision
on the issue would be made probably by September.
Meanwhile, officials wait for a decision to be reached on the
much-publicised Disney venture.
With negotiators hoping for a decision by October 31, the authority
said it could cope with the surge in arrivals with ease.
Mr Fung said the airport could handle a doubling of the passenger
flow now, adding that if Disney were to set up an amusement park
in the SAR, the airport - which has an annual handling capacity
45 million passengers - would benefit enormously.
He said the airport was running smoothly in the aftermath of its
teething problems in July and August last year.
Passenger and cargo handling capacities have risen 4 to 6 per
cent compared with the old service at Kai Tak.
In addition, the authority is confident the Y2K problem will not
affect the smooth running of the airport.
Mr Fung said 97 per cent of computers were Y2K compliant, but
noted that it was up to the entire business community to address
the problem on a common front.
Pressure mounts for PAL assets auction
======================================
THE US Export and Import Bank has suggested that debt-ridden Philippine
Airlines (PAL) should dispose of its non-core assets via a public
auction.
The Manila Integrated Service Corp, which had previously expressed
interest in PAL's assets, has also called for an open bidding
process.
Both suggestions have been prompted by a rumour that Lufthansa
Technik, a unit of German carrier Lufthansa, has negotiated to
acquire PAL's maintenance and engineering operations.
The US ExImBank has also reiterated its call for the Phillippines'
Securities and Exchange Commission to withdraw its approval of
PAL's rehabilitation plan, claiming that "creditors and stakeholders
have not been provided with appropriate and adequate information
on the process being employed in the sale of (the airline's) valuable
non-core assets."
SIA gets its man
================
SINGAPORE AIRLINES (SIA) has announced that Charles Goode, chairman
of Australia and New Zealand Banking Group Limited, has been appointed
to the board of the airline.
This is the first time since SIA's formation in 1972 that a non-Singaporean
has been appointed to its board.
The airline is operating in an increasingly competitive international
market dominated by big global players. The experience of a distinguished
board member from outside Singapore will contribute an international
perspective to deliberations of the board, and assist SIA in becoming
a global company.
Mr Goode has served as chairman of the Australia and New Zealand
Banking Group (ANZ) since 1995. ANZ is one of the largest trading
banks in Australia and New Zealand, with branches in 37 other
countries.
He is also chairman of Woodside Petroleum Ltd., Australian United
Investment Company Ltd. and Diversified United Investment Ltd.,
and a director of CSR Ltd. and Queensland Investment Corporation.
Mr Goode holds degrees from Melbourne University (Bachelor of
Commerce with Honours) and Columbia University, New York (Master
of Business Administration).
US-UK talks founder on BA refusal
=================================
BILATERAL government-level talks aimed at approving an alliance
between British Airways and American Airlines have been suspended
after British Airways refused to yield ground on the number of
take-off and landing slots it is willing to give up.
And the British Cargo Airline Alliance, which is lobbying for
the opening of the US wet-leasing market to UK airlines, has called
for the US side to soften its stance.
"There is no point in the two sides meeting unless the US
government has a genuine reciprocal agenda to put forward,"
a spokesman commented.
SchedNet http://www.schednet.com
HACTL anniversary thumbs up for Chek Lap Kok
============================================
HONG KONG Air Cargo Terminals Limited (HACTL) is confident that
Hong Kong remains the world's leading air cargo hub, according
to HACTL's managing director, Anthony Wong.
"Our operations have steadily returned to the high levels
of reliability that our customers associated with us before the
transfer to Chek Lap Kok," Wong said. "Through innovative
efforts to enhance our services, our operational standards have
now surpassed those of Kai Tak."
In April 1999, HACTL had achieved all of its performance targets,
including 30 minute or less truck queing, cargo reception and
cargo availability times.
HACTL has also initiated a programme of enhancing customer service
with the goal of positioning the company as a one-stop service
integration centre. First on the agenda was the introduction of
the SuperLink Airport Direct - a programme specially designed
to implement primary and secondary sorting simultaneously.
The new system shortens processing time and reduces cost. In addition,
freight forwarders now have unprecedented access to facilities
and resources inside SuperTerminal 1.
Mr Wong said the throughput handled by HACTL for the first five
months of 1999 has increased by 7 per cent compared with the same
period last year. HACTL predicts modest growth for the year, so
long as Hong Kong sustains current market conditions.
"HACTL is committed to position SuperTerminal 1 as a one-stop
integration centre," Mr Wong said. "Superterminal 1
is a world-class air cargo facility with fully automated systems.
In addition, our Express Centre is dedicated to serving the needs
of the fast-growing express cargo business. Together, they will
ensure Hong Kong's position as the world's leading air cargo hub."
Manila benefits from Northwest rates change
===========================================
MANILA is the only Asian destination to benefit from Northwest
Airlines' transpacific rates adjustment, which comes into effect
on August 15.
General freight rates to Manila from all US airports will fall
10 per cent.
Rates to all other Asian destinations will go up by four per cent.
Northwest operates Asia-bound flights from Sacramento, Orange
County, San Francisco, Los Angeles, San Diego and San Jose in
California, Portland and Seattle in Oregon, Reno in Nevada, and
Ontario, Canada.
Fresh look for freighter
========================
TO celebrate the official opening of its new US$400 million World
Cargocentre at Heathrow. British Airways World Cargo's livery
is for the first time taking to the air on a Boeing 747-400F
freighter aircraft.
Fresh out of the Boeing factory in Seattle, the 127 tonnes capacity
freighter is owned by Atlas Air Inc., a supplier of independent
air cargo capacity.
The freighter will provide dedicated services for British Airways
World Cargo and will operate round-trips linking London and Hong
Kong.
Freight forwarders group launched
=================================
A CO-OPERATION group comprising five Hong Kong freight forwarders
was formalised on July 1.
The group, comprising Birkart-East West Freight Ltd., Flynt International
Forwarders Ltd., Geis JM Hong Kong Ltd., Oriental Air Transport
Service Ltd. and Zust Ambrosetti Far East Ltd., has been operating
a successful inbound service from Germany for over a year.
The group plans to extend this cooperation to other destinations.
With their combined volume and buying power the five medium-sized
privately-owned companies believe they will be a competitive force
in the forwarding industry.
Corporate identity, ownership, management and sales and marketing
activities for each group member will remain entirely independent.
Privatisation the way ahead for US airports
===========================================
THE US House Aviation Subcommittee yesterday reviewed the status
of US airport privatisation initiatives since the enactment of
the FAA Airport Privatisation Pilot Programme which enables airports
to sell or lease their facilities to the private sector.
Rep. Duncan (Chairman of the subcommittee and a co-sponsor of
the Pilot Programme legislation) invited airport officials, the
FAA and private operators to report recent developments, discuss
why US airports have been slow to participate in the programme
and consider ways to remove obstacles that may be discouraging
airports from seizing the opportunity.
In the last two years, some 66 airports have been privatised worldwide.
In the US, two airports, Stewart International Airport in New
York and San Diego Brown Field, have applied for privatisation
under the Pilot Programme.
Niagara Falls International Airport in New York is also expected
to request proposals for the lease of the airport this week.
"We are absolutely convinced that more airports will be privatised
once everyone understands the overwhelming advantages to all the
stakeholders.
"The airlines get efficient management and lower costs, the
community gets increased tax revenues, the employees get empowerment
and a chance to operate in a less bureaucratic environment and,
most importantly, the passenger gets dramatically improved customer
service," said David Suomi, vice president of BAA USA Inc.,
which manages all operations at both Indianapolis International
Airport and Harrisburg International Airport.
Emirates adds third daily London flight
=======================================
EMIRATES Airline has introduced a third daily flight between Dubai
and London Heathrow from July 1.
The carrier will also, from the same date, reschedule its Hong
Kong-Bangkok service and add an extra flight to Islamabad.
The new London flight offers passengers the choice of a late-afternoon
departure from Dubai and a late-evening trip from London, giving
Emirates five daily flights to the United Kingdom - three to Heathrow,
one to Gatwick and one to Manchester.
On October 1, the carrier will begin using its new Airbus A330-200
engine on the third daily flight, replacing the A310-300.
Emirates will from July 9 start an extra flight to Islamabad after
receiving approval from the Pakistan Civil Aviation Authority
granted it permission.
Figures show Air Macau back in the black
========================================
AIR MACAU officials say the carrier has pulled itself back into
the black, after posting a loss last year during the Asian financial
crisis.
First-half figures for this year suggest the company is turning
over a profit, the officials said.
While unable to disclose its full-year result for 1998, it is
understood that Air Macau suffered losses last year amid weak
demand throughout Asia as well as higher costs due to currency
devaluations in rival economies such as Thailand and Malaysia.
Between January and June, the airline operated 4,894 flights carrying
almost 600,000 passengers and 6,800 tonnes of cargo.
In percentage terms, passenger business jumped more than 15 per
cent, while freight business rose more than 6 per cent compared
with the same period a year earlier.
During the six-month period, the passenger load factor advanced
9.5 per cent on the previous corresponding period to 66.9 per
cent.
US, Canada airlines' Y2K remediation "95 pc complete"
=====================================================
OFFICIALS from the US airline industry's joint Y2K programme,
the Aviation Millennium Project, have said that US and Canadian
airlines are 95 per cent finished with Y2K remediation efforts
and that they will continue testing throughout the year.
They made their announcement in a report to the President's Council
on Year 2000 Conversion and to the Department of Transportation.
"The airline industry is in great shape and we will be ready
for the new millennium," said Carol Hallett, president and
CEO of the Air Transport Association (ATA). "Individual carriers
have been working for several years to tackle Y2K problems and
the situation is well in hand."
In the report to the White House and the Department of Transportation,
the nation's airlines announced that:
* US and Canadian airlines are 95 per cent complete with remediation
efforts of critical systems
* Airlines have spent over US$750 million on solving the Y2K problem
* At any one time, over 4,400 people have been working on Y2K
problems throughout the industry
* Airlines, in coordination with the FAA and airports, are designing,
implementing and testing contingency plans
* Airports report they are on schedule with their own remediation
efforts
* Boeing and Airbus have completed their Y2K flight testing demonstrating
that there are no flight safety issues related to Y2K
Mr Hallett was joined in the announcement by John Koskinen, assistant
to the president and chairman of the President's Council: "The
airline industry is moving forward at a rapid pace. The Council
encourages the industry to continue its good work on remediation
and testing as well as on contingency planning so that January
1 is just like any other day for the travelling public."
The Aviation Millennium Project is the aviation industry's response
to the 2000 computer challenge. With a budget of $16 million the
project has been helping the commercial aviation industry in the
US and Canada to prepare for 2000.
The Aviation Millennium Project is working with 102 airlines,
over 500 airports, air traffic control systems and hundreds of
suppliers and manufacturers to advance industry readiness.
The Millennium Project is coordinated by the US airline industry's
trade association, the Air Transport Association.
Lower fuel costs help spur FDX 26 pc profit growth
==================================================
LOWER fuel prices and an improving Asia trade were behind a reported
26 per cent FDX Corp net income increase to US$631 million for
the fiscal year ending May 31.
Cost-cutting and improved productivity worldwide were also cited
by FDX, the parent company of Federal Express, in announcing the
gains.
Domestic and international revenue climbed 5.2 per cent and 6.1
per cent to $10.2 billion and $3.8 billion, with total sales for
the year reaching $16.8 billion, an increase of 6 per cent.
In the fourth quarter a 7 per cent revenue increase to $4.4 billion
underpinned a 30 per cent rise in net income, to $221 million.
And ground delivery specialist RPS, a Fedex sister company, posted
a 35 per cent rise in operating income on the back of a 9.8 per
cent increase in revenue, to $1.9 billion, for the year.
Argentine expansion for DHL Worldwide
=====================================
DHL WORLDWIDE has boosted its presence in the Argentina market
with the acquisition of its Argentine agent DHL International
SA.
The move complements the air express giant's US$10 million investment
plans, which include positioning a hub operation at Ezeiza Airport
in Buenos Aires.
Consignment handling systems and dedicated aircraft and offices
are among the investment initiatives.
A recently built aviation hub in Panama and three Brazilian service
centres are part of DHL's Latin America expansion plans.
SchedNet http://www.schednet.com
================================
Michal Douglas <airc...@concentric.net>
Moderator for The Air Cargo Newsgroup
news:misc.transport.air-industry.cargo