The International Air Transport Association (IATA) estimates that airline revenues, subject to restrictions for three months, could fall by $ 252bn in 2020.
Through strict travel restrictions and the expected global recession in the global economy, IATA predicts that revenue from passenger transportation in 2020 could fall by $ 252 billion, or 44% compared with last year.
This scenario can be realized if travel restrictions between countries are kept for up to three months. After which the economy will begin to recover.
In a previous analysis dated March 5, 2020, IATA predicted a revenue decline of 113 billion. Thus, the association more than doubled its estimate of losses.
Source: IATA
Global charter broker company, Chapman Freeborn has over the last two – three days has experienced a surge in cargo charter requests for humanitarian cargo and medical supplies (typically N95 respirators) from China into Europe and Africa.
Now, the broker teams across Chapman Freeborn’s European and African offices are working with their counterparts in China and Singapore to facilitate hundreds of tons of critical aid supplies into affected areas.
China is the world’s largest producer of medical face masks, with over 100 million manufactured per day (increased by around 500% since the beginning of the pandemic). These masks are being transported around the world to support the medical response.
Pierre Vanders, Chapman Freeborn cargo director, comments: “We are all extremely busy with requests for urgent cargo leaving China. Not only our European and African offices but our offices in North America also.
“The biggest issue that we’re facing is capacity – there is a real shortage. However, we’ve managed to fix a number of immediate flights using cancellations (due to transit delays within China).”
Vanders adds: “I’m incredibly proud of the team that we have here – we’ve all been working around the clock to ensure that these critically-needed supplies get to where they need to be.”
Source: Cargo Newswire
Delta Airlines is dispatching idled aircraft on cargo runs to destinations around the world, with thousands of pounds of supplies. Delta operated its first cargo-only flight from Dublin to Atlanta carrying medical supplies, and expects to fly more between the Irish capital this week. More than 32,000 pounds of pharmaceutical supplies were loaded on the widebody Airbus A350.
Delta also dispatched two Boeing 777-200LRs to from Los Angeles to Sydney, Australia, with more than 80 tonnes of cargo. A cargo flight from Chicago to Amsterdam to deliver US mail is expected later this week. The Boeing 777 and Airbus A350 are two of the largest aircraft in the Delta fleet, and are capable of flying 42 tons and 49 tonnes of cargo, respectively, in the hold.
As international passenger flights have been reduced due to Covid-19, Delta Cargo launched a new cargo charter operation to provide safe and reliable transportation of essential goods to communities around the globe using aircraft that would otherwise be parked.
“We’re here to help keep global commerce moving and supply lines open,” said Shawn Cole, Vice President – Delta Cargo. “Transforming our operation to provide cargo-only charter flights allows us to diversify our business at a time where the global need to move critical supplies is significant. It’s also core to what we do and who we are—ensuring we connect the world, even in challenging times.”
Delta has had a long history of delivering much-needed supplies and equipment. In recent hurricane seasons, Delta delivered hundreds of thousands of pounds of humanitarian supplies to the communities that were hardest-hit.
Delta Cargo annually flies 421,000 tonnes of cargo around the world, including everything from pharmaceutical supplies, fresh flowers, produce and e-commerce, to global mail and heavy machinery.
Source: Cargo Newswire
The European Commission calls on EU Member States to support air cargo operations during the coronavirus crisis. The new guidance recommends operational and organisational steps to keep essential transport flows moving, including medical supplies and personnel.
Commissioner for Transport Adina Vălean declared: “Air cargo amounts to approximately 35% of world trade by value and is a key part of freight transport. It keeps global supply chains functioning for many of the most high-value materials and it is a critical complement to the transport of freight by land and sea. We are providing concrete measures to keep such services running, including on passenger planes.
Time-sensitive products, such as medicines, need to be flown. The guidelines adopted today have also recommendations on removing or showing flexibility in night curfews or slot restrictions at airports, and also special measures for air cargo personnel.”
The measures include inviting Member States to grant temporary traffic rights for additional cargo operations from outside the EU if restrictions would normally apply, even if these cargo operations are conducted with passenger aircraft. Member States are also advised to temporarily remove night curfews and/or slot restrictions at airports for essential air cargo operations, and to facilitate the use of passenger aircraft for cargo-only operations. Aircrew flying the aircraft should be exempted from travel restrictions if they do not show symptoms.
It is crucial that open airports have sufficient capacity to handle air cargo, and put in place special measures for transport personnel involved in the transport of goods.
These exceptional measures will be temporary for the duration of the coronavirus crisis.
Any restrictions incompatible with Union law must be lifted. The Commission is also calling on all third countries to refrain from unnecessary restrictions on air cargo operations, in particular those incompatible with agreements in place. This is in the common interest of supply chain continuity for goods, including essential ones, such as highly specialised, urgent and critical products such as medical supplies.
Source: European Comission
Turkish Airlines, Aeromexico and Air Canada have joined the increasing number of airlines using passenger aircraft as freighters during the coronavirus pandemic.
Turkish Cargo operated the first of its cargo flights with a passenger aircraft on March 20 with a Boeing 777 on the Istanbul-Kiev route, and is to operate cargo flights to Bucharest (OTP), Tel Aviv (TLV), Amsterdam (AMS), London (LHR), Paris (CDG), Amman (AMM), Beirut (BEY), and Dubai (DWC/DXB), adding an 5,000 tonnes of additional capacity.
The first charter flight by Aeromexico Cargo took off from Mexico City to Frankfurt, operated with a Boeing 787-9 aircraft shipping 15 tons of cargo.
The service is operated as a charter, meaning on demand and for shipping perishable products, live animals, high-value goods, technology and pharma, among others.
Air Canada has announced cargo-only flights on Boeing 777s with 40 tonnes capacity, and Boeing 787-9s, with 35 tonnes capacity, to help keep the supply chain moving.
Said an Air Canada official: “Routing [is] available between key cities in our global network, with convenient trucking to and from points in the US like ORD, JFK, SFO, LAX, PDX and SEA. Flights can accommodate general and specialized freight.”
A spokesperson for Turkish Cargo said: “During these times with global repercussions and national challenge, Turkish Cargo continues its mission to act as a bridge that transports the much-needed medicine and medical equipment to Turkey from across the world and from Turkey to the countries that need them.
“With that in mind global cargo carrier already started to carry the rapid test kits that can give results in 15 minutes to Turkey from China.
“In this crucial process, Turkish Cargo added 14.500 tonnes of extra capacity from and to Turkey with additional 167 cargo flights. By adjusting to the rapidly changing situation and maintaining its commitment to provide additional capacity, global cargo carrier will contribute to the continuation of the supply chain while doing its duty during these challenging times by standing with its nation as the flag carrier.”
Said an Aeromexico spokesperson: “Due to the health contingency and, supporting the continuity of economies and businesses, Aeromexico will use part of its grounded fleet for cargo-only through its airfreight division, Aeromexico Cargo.
“Domestically, Aeromexico can transport cargo to 41 airports, and internationally in the US, Canada, Central and South America, Asia and, Europe.”
Source: Air Cargo News
American Airlines is utilizing its currently grounded passenger aircraft to move cargo between the United States and Europe, ensuring the world’s goods continue to get where they need to go.
The first cargo-only flight departs from Dallas Fort Worth International Airport (DFW) tomorrow, March 20, landing at Frankfurt Airport (FRA) March 21. The Boeing 777-300 will operate two round trips between DFW and FRA over the course of four days, carrying only cargo and necessary flight personnel. This is the first scheduled cargo-only flight since 1984 when American retired the last of its Boeing 747 freighters.
The 777-300 has 14 cargo positions for large pallets and can carry more than 100,000 pounds. The four scheduled flights this weekend are expected to be booked to capacity and transport medical supplies, mail for active U.S. military, telecommunications equipment and electronics that will support people working from home, and e-commerce packages.
The flights provide much-needed cargo capacity for many of the airline’s regular cargo customers, allowing them to continue operating in this challenging environment.
Air cargo has always played a key role in times of crisis, delivering lifesaving medical supplies and materials to keep the world’s infrastructure intact. In the face of the coronavirus (COVID-19) outbreak, this role has never been more important as the world relies more on e-commerce to support basic needs during quarantines and social distancing. The airlines’ role is deemed a critical infrastructure industry by the Centers for Disease Control and Prevention (CDC).
“We have a critical role to play in keeping essential goods moving during this unprecedented time, and we are proud to do our part and find ways to continue to serve our customers and our communities,” said Rick Elieson, President of Cargo and Vice President of International Operations. “Challenging times call for creative solutions, and a team of people across the airline has been working nonstop to arrange cargo-only flight options for our customers.”
Cargo-only flights, while not carrying customers, continue to require a group effort from American’s team members across every function. From the first call to a customer to the last cargo offloaded from the plane, team members and vendor partners contribute to these efforts.
“It’s an honor to be part of these cargo-only flights,” said Ken Jarrell, Fleet Service Clerk, Cargo Services – DFW. “They represent much needed aid for the world and hope for our team. Our team members across the airline are ready and willing to do what it takes to make sure people have the things they need during these unprecedented times.”
Domestically, American continues to carry cargo on all of its planes. The smaller narrowbody aircraft are especially vital in supporting the world’s economy, delivering medicine and e-commerce goods. This week the airline also transported its first shipment of COVID-19 test kits from Raleigh-Durham International Airport to Chicago O’Hare Airport.
American continues to work to provide solutions for our customers and world governments to protect the public health and keep the global economy moving during this time of need.
Source: American Airlines
Korean Air is using passenger aircraft as freighters on suspended routes, as it seeks “new opportunities in the market amid unpredictable changes such as suspensions of flights and the US’ restrictions on European countries”.
On 13 March, the flag carrier transported emergency supplies and agricultural products from South Korea to Ho Chi Minh City, Vietnam, plying a route that has been suspended from 3 March. This was flown on a passenger Airbus A330-300 capable of carrying 20 tonnes of cargo.
Korean Air will also deploy more cargo flights to Qingdao, China from 21 March, using passenger aircraft that it says have been idle from 25 February. It plans to expand destinations and cargo types.
Last week, the carrier confirmed that 100 of 145 passenger aircraft in its fleet have been grounded, and this includes ten A380s that will remain out of service until 25 April.
It says in the latest statement: “Flight suspensions and reductions due to Covid-19 have led airlines to park passenger aircraft at airports. The entry restrictions of many countries on passengers departing from [South] Korea has led to the suspension of 89 of Korean Air’s 124 routes as of March 13.
“The number of operating international flights has been reduced to approximately 86% following a decrease in demand.”
Korean states that Hanjin Group chairman, Walter Cho, proposed the idea of using passenger aircraft as freighters to “overcome the current crisis, as this would cut down expenses and support import and export companies.”
Cho said: “As the Covid-19 situation becomes increasingly dire, it is important for us to take a new perspective when looking at the market.
“If we use the cargo compartment of our parked passenger aircraft, not only can we respond to the changing demand of cargo transport by diversifying our cargo routes, but we can also reduce aircraft parking fees.”
He added: “The business strategies of passenger and cargo should be shifted as the trans-Atlantic [air routes are] now blocked. We must flexibly respond to market demand.”
Source: Flight Global
Scoot (TR, Singapore Changi) will deploy its passenger-configured B787-9s on cargo charters between Singapore Changi and destinations in China on behalf of its parent Singapore Airlines (SQ, Singapore Changi), the airline confirmed to Air Cargo News.
Singapore Airlines Group will become the second operator after Cathay Pacific (CX, Hong Kong Int’l) to use its passenger aircraft’s bellyhold capacity to run cargo-only flights to China. The shortage of said capacity as a result of the termination of most passenger services has significantly affected the overall volume of available cargo space available on flights to and from China.
Scoot said it would operate cargo charters to Guangzhou and Nanjing during March 2020, despite all of its passenger services to China having been suspended through April 25, 2020.
The airline underlined that special precautions would be taken with no crew members staying in China. Ground handling agents will be wearing protective suits, and the aircraft will be thoroughly disinfected after returning to Singapore.
While most of its passenger services to China remain suspended, Singapore Airlines itself operates scheduled cargo flights to Shanghai Pudong. It also continues to operate daily passenger flights to Beijing Capital and Shanghai, as well as 3x weekly flights to Guangzhou, the ch-aviation schedules module shows.
Scoot, its low-cost carrier, does not operate any freighters.
Cathay Pacific recently started using A330-300s operated by Cathay Dragon to run cargo services between Hong Kong Int’l and mainland China. It is also considering employing similar measures to Japan.
Source: CH-Aviation
The leader of the global port industry DP World bought stocks in TIS Container Terminal Ukraine. DP World serves all container lines at 78 terminals in 50 countries around the world, and thus Ukraine has become 51 countries where the global leader operates.
Sultan Ahmed Bin Sulayem, CEO of DP World, noted that the company highly appreciates the growth potential of the TIS Group container terminal. The company invests in new projects on average $ 1.2 billion annually.
Egor Grebennikov, one of the TIS co-owners, said: “We are proud that TIS as a partner was carefully selected by the global leader after a comprehensive assessment of dozens of criteria, including strong railway development, growth dynamics, large territories for development, team enthusiasm and desire to develop “
He also added that from now, plans for logistics parks and intermodal coverage of large cities of Ukraine will be reinforced in the form of a powerful resource partner with international expertise. In the future, this will provide an opportunity to improve communication with Europe and connect with the Trans-Caspian transport route, which is called the “Second Silk Road”.
Source: SRL