Transportation Industry

Air Cargo News

AirGuide Business, June 30, 2008

Jun 30, 2008

Air France KLM and three other airlines agreed to pay fines totaling USD$504 million to settle US price-fixing charges involving vast shipments of consumer goods ranging from electronics to medicines, the US Justice Department said on Thursday. The plea deal was the latest in a series of airline cargo price-fixing settlements and boosted the total fines from the US antitrust investigation to a record USD$1.27 billion. Under the new agreement, Air France-KLM will pay USD$350 million, the second-largest criminal fine ever obtained by the Justice Department's antitrust division, the government said in a statement. Air France and KLM operated as separate companies at the start of the price-fixing investigation until May 2004, when they combined under a single holding company. Cathay Pacific will pay a USD$60 million fine while Scandinavian airline SAS will pay USD$52 million and Martinair USD$42 million, the Justice Department said. Jun 27, 2008

Several foreign carriers will pay fines as a result of a Justice Department probe into collusion in air-cargo prices. The U.S. government has accused Air France, Cathay Pacific Airways Ltd., KLM Royal Dutch Airlines, Martinair Holland NV and Scandinavian Airlines System's SAS Cargo Group AS of holding meetings to suppress competition by fixing rates. Jun 27, 2008

IATA said Germany, Mauritius and South Korea have been targeted to be added this year for "paperless" air cargo. Five of the 11 new locations identified yesterday will be selected to launch e-freight in 2008 with the remainder targeted for launch in 2009. IATA wants to implement e-freight "where feasible" by 2010 but has acknowledged that fewer than 25% of locations worldwide likely will be e-freight capable by then. Jun 25, 2008

IATA yesterday identified 11 additional countries as "ready for e-freight," signaling a potential major expansion of trials that aim to demonstrate the feasibility of "paperless" air cargo. New nations are US, Luxembourg, France, Spain, Australia, New Zealand, UAE (Dubai), Switzerland, Iceland, Denmark and Norway. Current e-freight trials, in which a portion of airfreight on key trade lanes travels without much of the paper documentation usually accompanying cargo, are taking place at airports in Canada, Sweden, UK, Hong Kong, Singapore and Netherlands. Jun 25, 2008

Cargolux

Cargolux commenced weekly Vienna-Hong Kong service. Jun 24, 2008

MK Airlines

Cargo carrier MK Airlines recommenced flight operations after administrators secured funding last Friday from Transatlantic Aviation Ltd., part of The Belfairs Management Group. MK suspended service June 10 and was in discussions with several parties regarding investment that would help it renew its fleet of 747-200Fs and DC-8Fs. Jun 24, 2008

Toronto Pearson

Toronto Pearson will reduce cargo landing fees by 25% effective Jan. 1. The airport handles more than 500,000 tonnes of freight per year. Jun 23, 2008

UPS

UPS issued a profit warning yesterday, projecting earnings per share for the second quarter of $0.83-$0.88, down from the $0.97-$1.04 per share originally anticipated. It cited "slow US economic growth and an unprecedented increase in the cost of fuel," resulting in lower US package volume than expected and an "accelerating contraction in the use of premium air products." Demand has dropped for air shipments due to the slow economy, and jet fuel costs meanwhile jumped 30% this quarter, according to the company. Jun 24, 2008

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