Tag Archive: airline news


US – CHINA – Following our story last month concerning the rebranding of YRC Worldwide, the trucking and logistics group, which incorporates subsidiary YRC Freight, has, as predicted, continued its disposal of assets with the sale of the groups interest in Shanghai Jiayu Logistics Co., Ltd. to its 35-percent joint venture partner. YRC bought its 65% stake in the company in 2008 after a period stretching back several years when it had grown enormously through an acquisition policy started when the Yellow Corporation bought out the Roadway Corporation in a billion dollar deal to form the Yellow Roadway Corporation.

YRC paid $47.7 million when they purchased their share of Shanghai Jiayu Logistics, principally a less than truckload road haulage outfit, but never took up the option they had to buy the balance of shares in 2010 at the $14 million agreed. The deal was described at the time by then Chairman, President and CEO of YRC Worldwide, Bill Zollars, as, “The next step in building a comprehensive portfolio of logistics services for our customers in China.”

As there has been no word from YRC we must assume their investment in JHJ International Transport, which covers all of mainland China having offices throughout the country, remains intact. The sale of Jiayu is subject to Chinese regulatory approval and expected to close in the second quarter of 2012. The terms of the deal were not disclosed. James Welch, chief executive officer of YRC Worldwide, commented:

“This is another important step in the continuing process to sharpen our focus on North American less-than-truckload (LTL) shipping. Our emphasis on core LTL services has resulted in significant increases in on-time service and our customers are responding very favourably. This transaction allows us to further simplify our portfolio and streamline our operations as we concentrate on regaining the North American LTL market leader position.”

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Bali Cargo news – Another pair of scalps for the United States Department of Justice (DoJ) yesterday with the news that Ulrich Ogiermann and Robert Van de Weg, two executives from Luxembourg carrier Cargolux Airlines International S.A., have received jail terms of thirteen months each for their parts in the air freight cartel activities which have scandalised the industry, after personal indictments against them to which they entered guilty pleas.

Cargolux, from the Grand Duchy and the largest European all cargo airline, has been quick to accept responsibility for its actions, pleading guilty in May 2009 and agreeing a fine of $119 million for its role in conspiring with others to suppress and eliminate competition by fixing and coordinating surcharges, including security and fuel surcharges, charged to customers located in the United States and elsewhere for air cargo shipments.

According to the indictment, Ogiermann, a ‘special advisor’ to the Company and a former president and CEO, participated in the conspiracy from at least as early as October 2001 until at least February 2006, and Van de Weg, the senior vice president of sales and marketing for Cargolux, participated in the conspiracy from at least as early December 2003 until at least February 2006. Under their plea agreements, Ogiermann and Van de Weg have also each agreed to pay a $20,000 criminal fine and to cooperate with the department’s ongoing investigation.

Including Ogiermann and Van de Weg, a total of 22 airlines and 21 executives have been charged in the Justice Department’s continuing enquiries into price fixing in the air transportation industry. To date, more than $1.8 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time. The two men were charged with price fixing in violation of the Sherman Act, which carries a maximum fine of $1 million and up to 10 years in prison. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Unlike many of those found guilty of the charges against them Cargolux has been open about the actions it took at the time. The company has stressed that neither man was accused of making any personal gains from their actions and, while expressing its regret for the executives personally, the company views their decision to plead guilty as a way to finally bring this matter to a controlled close both for them and the company. A search of our archives (type key words like cartel or anti trust in the News Search Box) will reveal the extent to which the freight and logistics sector walks a fine line between cooperation and collusion and this situation extends throughout the entire industry from freight forwarders to ocean container fleets.

WORLDWIDE – Lots going on at Emirates SkyCargo with several developments this month, including a pair of heavy lift records and the announcement of a couple of new routes. Not satisfied with setting a new record for the heaviest recorded single item ever carried by a Boeing 777F the airline has now broken its own record for a freight forwarding project by shipping an even larger piece via a Boeing 747.

Firstly the cargo carrier shipped a blowout preventer, a specialised valve used to seal, control and monitor oil and gas wells weighing 21,157kgs, from Iraq to Dubai. The piece cubed out at over 8m3 and bordered the limit of the 777’s capacity by less than 500kgs. Nihal Wickrema, Emirates’ Manager Freighter Operations & Charters commented that the preparations by the ground handling staff, dnata in Erbil and SkyCargo personnel in Dubai, had been impeccable.

Now the cargo airline has transported its heaviest ever single piece, a 36 tonne rudder section for an urgent delivery from the shipyard in Korea to Dubai using a Boeing 747. The move entailed two 50 tonne cranes and two high loaders to stow and offload the massive piece via the aircraft’s hinged nose section.

A Boeing 747-400F will also feature in the newly announced service which SkyCargo will in future be offering between Dubai and Ghana every Friday. Parent airline Emirates has been operating a passenger service to Accra, with a weekly cargo capacity of 120 tonnes each way in the bellyhold of an Airbus A330-200, since 2004. The new service, to Kotoka International Airport, will operate via Lome, Togo, on the outbound journey and return to Dubai through Frankfurt, Germany. Emirates has also started a regular service to Buenos Aires due to commence on the 3rd January 2012.

British Airways World Cargo launches commercial operations of the world’s most advanced freighter at Hartsfield Jackson Atlanta International Airport

The British Consulate-General will be present at a special event at Hartsfield Jackson Atlanta International Airport on Thursday marking British Airways World Cargo’s first ever commercial operations on US soil of their newly acquired Boeing 747-8 freighter aircraft.

Mayor Kasim Reed, will join British Airways staff and customers, together with airport officials in celebrating this occasion, in conjunction with the formal launch of the British Airways World Cargo North America  HQ, recently relocated from New York to Atlanta.

The British Airways World Cargo announcement is a further demonstration of the continuing investment by British business in Georgia and the importance of Atlanta as the logistical hub of the Southeast. There are approximately 500 British companies located throughout Georgia providing around 30,000 jobs. The UK is also a major export destination for Georgia and other South East states and the newly launched British Airways World Cargo B747-8F freighter service will bolster this important trade route as well as trade with many other important global markets.

“I am delighted to see the UK’s flagship carrier expanding their North American Cargo activities from their new Atlanta HQ.  British Airways is a world leading air services provider, and their cargo services are known for the high quality service they provide in the air and on the ground.  Mayor Reed visited British Airway’s cargo facilities at Heathrow last year to view their state of the art logistics and handling operations” said British Consul General Annabelle Malins.

Head of UK Trade and Investment in Atlanta, Rebecca Mowat, said “The new freighter is most impressive and its arrival in Atlanta is a fitting way to mark the opening of British Airways World Cargo headquarters in Atlanta – one of several new British business investments in Georgia this year.  My highly experienced team here in Atlanta are in strong demand to support UK and US companies with international business growth on both sides of the Atlantic.

Bali Cargo : Regulator penerbangan RI akhirnya memberlakukan inspeksi pengiriman barang untuk kargo internasional mulai hari Minggu (16/10/2011).

Pemberlakukan inspeksi oleh regulated agent (RA) tersebut dilakukan sebelum Uni Eropa akan melakùkan peninjauan implementasi keamanan kargo di Bandarà Soekarno Hatta, Cengkareng beberapa hari lagi.

Juru bicara Kementerian Perhubungan, Bambang S Ervan mengatakan, RA untuk pengiriman internasional tersebut sesuai dengan jadwal yang ada.

“Saat pertemuan terakhir regulator dengan pengusaha, pelaksanaannya paling lambat tiga bulan.  Saat itu ditunda karena belum ada kesepahaman tentang mekanisme pemeriksaan antara Ditjen Bea cukai dan Ditjen Perhubungan Udara (Kemenhub).  Saat ini sudah ada kesepahaman tentang mekanisme pemeriksaan,” kata Bambang di Jakarta, Senin (17/10/2011).

Menurutnya,  pihak bea dan cukai sudah paham pentingnya proses pemeriksaan kargo internasional melalui RA, begitu juga sekitar 80-90  pengirim pabrikan (known shipper atau known consignor).

Inspeksi kargo internasional ini bagian dari penilaian Komisi Eropa terkait keselamatan penerbangan di Indonesia. Jika tidak dijalankan, jelasnya,  bisa saja ada dampak larangan terbang ke Eropa.

Berdasarkan surat edaran yang dikeluarkan oleh Direktur Keamanan Penerbangan Ditjen Perhubungan Udara, M. Fuschad pada Jumat (14/10) terungkap untuk jenis kiriman barang kargo/pos yang dikirim oleh pengirim pabrikan dari kawasan berikat dapat langsung menuju daerah kemanan terbatas area gudang kargo (lini 1).

Untuk jenis barang kargo/pos yang dikirim oleh pengirim (un-known shipper atau un-known consignor), pemeriksaan keamanan dilakukan untuk sementara waktu dilakukan di lini 1 oleh RA. Dampak dari hal ini adalah Angkasa Pura II yang selama ini melakukan pemeriksaan di lini 1 diminta untuk menghentikan kegiatan pemeriksaan.

UE, jelasnya, pada Selasa (18/10) akan hadir di Indonesia. “Mereka akan rapat dengan dirjen (Perhubungan Udara, Herry Bakti Singayuda Gumay). Setelah itu baru melakukan inspeksi di Cengkareng,” ujarnya.

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