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EXTRANS GLOBAL - Air Freight News - Week 09 2025

Air Cargo General

1)  What are the changes in the global air cargo market due to the suspension of Polar Air Cargo operations?

  • Atlas Air has announced plans to shift from its existing joint venture model to focus on independent business operations, but the effective discontinuation of Polar Air Cargo, which held a significant share in the commercial air cargo supply market, is expected to have a considerable impact on the market.

  • In particular, with the so-called collaboration with DHL coming to an end, there is no clear market strategy or direction regarding how to manage and utilize the cargo space that was previously handled through DHL, making it difficult to interpret this situation as merely a separation between airline shareholders.

  • First, Atlas Air operates the world's largest fleet of Boeing 747 freighters and has stated that the dissolution of the Polar Air Cargo joint venture is part of a strategic directional change. They reached the conclusion that the joint model no longer aligns with the strategic goals of both companies.

  • From the perspective of the express service market, Polar Air Cargo has been a company providing regular express air services, with Atlas Air operating the aircraft and DHL securing the main cargo space. As a result of this dissolution, Atlas Air is expected to absorb some of the personnel and facilities previously operated through the joint venture, while the rest will be transferred to DHL.

  • However, Atlas Air still maintains the Air Operator Certificate (AOC) for Polar Air Cargo, but it is reported that Polar's aircraft are currently not in operation. Atlas Air plans to reclaim four Boeing 747-8 freighters that were provided to DHL through Polar Air Cargo for new dedicated cargo transport contracts with other customers.

  • Conversely, DHL will directly operate two Boeing 777 freighters that were previously managed under the joint venture, while continuing to utilize Atlas Air's crew and maintenance services as before.

  • These changes reflect a strategic shift in Atlas Air's approach, moving from simply leasing and operating aircraft to entering direct contracts with customers and establishing an independent business model. Last year, Atlas ended its contract with Amazon and strengthened cooperation with Chinese e-commerce companies Shein and Temu, focusing on long-haul routes and e-commerce-centered air transport services.

  • From the perspective of changing market conditions, the dissolution of the joint venture between Atlas Air and DHL highlights the rapid evolution of the global air cargo market. Airlines are moving away from conventional scheduled services towards building more flexible air cargo networks and responding to the e-commerce market as key strategies.

  • Atlas Air plans to enhance its capabilities in handling e-commerce and high-value cargo through collaboration with Singapore-based global ground handling company WFS (Worldwide Flight Services).

  • DHL is also focusing on optimizing aircraft operations to meet fuel efficiency and carbon emission reduction goals, with expectations for the future introduction of more environmentally friendly aircraft and operational transitions.

 

2)  The decrease in cargo flights to the Americas after the Chinese Spring Festival is due to the impact of China's tariff policies.

  • Cargo flights from China to the Americas has still not recovered. This appears to be influenced by the introduction of U.S. tariffs on China and changes to the de minimis exemption standards affecting the air cargo market.

  • Recently, Tim van Leeuwen, a senior consultant at the global supply market analysis agency Ratate, stated on his LinkedIn that cargo flights between Asia and the U.S. have decreased to less than 15% compared to before the Chinese Spring Festival, which represents a reduction of an average of 12 flights per day. This means that 24 cargo planes have shifted to other markets.

  • However, Tim van Leeuwen explained that "while this decline may be influenced by U.S. tariffs on China, it coincides with the cargo demand surrounding Valentine's Day, making accurate analysis difficult."

  • Network airlines have quickly recovered, showing a slight decrease from 47 flights before the Spring Festival to 45 flights, while charter and integrator operations have seen a relatively larger decline.

  • In summary, charter airlines reduced their flights from 24 per day before the Spring Festival to 18 (-25%, a cut of 12 aircraft), and integrators reduced their flights from 18 per day to 14 (-22%, a cut of 8 aircraft).

  • This may indicate the early effects of U.S. tariffs on China, and it is noteworthy that charter airlines have experienced the largest reductions. Most importantly, the changes in the de minimis policy are likely to have a significant impact on the air cargo supply chain.

 

3)  Air France-KLM Martinair Cargo signs partnership with Triple Crown.

  • Air France-KLM Martinair Cargo has signed its first sustainable aviation fuel (SAF) partnership with Triple Crown and a domestic consolidator.
  • Triple Crown, established in 2020, is a leading air cargo transportation company that provides one-stop total services, from warehouse operations to air exports, charter services, customs clearance, and delivery.
  • Despite being a relatively new company, it has positioned itself as the second largest consolidator in the country and has grown to be among the top three in the industry.
  • The SAF program partnership signing ceremony took place on the 18th at the Dutch Embassy in Seoul, attended by key figures including Beatrice Delpeuch, Regional Director for Korea and Japan at Air France-KLM Martinair Cargo; Peter van der Vliet, Dutch Ambassador to Korea; and Park Cheon-gil, CEO of Triple Crown.
  • The SAF program is an eco-friendly initiative introduced by Air France-KLM Martinair Cargo in 2020, supporting global logistics companies and shippers to operate certain flights with a blend of SAF.
  • Participating companies can estimate the carbon emissions generated during the air cargo transportation process and provide contributions of their desired scale, with Air France-KLM Martinair Cargo ensuring that these contributions are used for SAF procurement.
  • Through this partnership, Triple Crown expects to achieve a minimum of 65% reduction in carbon emissions compared to existing fossil fuels.
  • Beatrice Delpeuch expressed her happiness about signing the first SAF partnership with Triple Crown, stating, "We will work to reduce our environmental footprint and enhance sustainability in the air cargo transportation industry."
  • Park Cheon-gil, CEO of Triple Crown, mentioned, "This year, we plan to strengthen our ESG management to establish a sustainable cargo transportation model, and starting with the SAF partnership with Air France-KLM Martinair Cargo, we will create sustainable changes and encourage more companies to join this effort."

 

4) Daemyung Sono may control T'way Air through T'way Holdings

 

  • Daemyung Sono Group, the leading resort company, is noted for accepting a proposal from Yeolimdang, the current actual owner of T'way Air, to acquire the second-largest LCC in Korea, T'way Air. Currently, T'way Air's ownership structure is formed as 'Yeolimdang → T'way Holdings → T'way Air,' with Yeolimdang stating, "To acquire T'way Air, you must buy the parent company, T'way Holdings."
  • The industry expects that Daemyung Sono will accept Yeolimdang's proposal and resolve the management rights dispute, especially since Daemyung Sono withdrew its request for a shareholder registry inspection against T'way Air on the 17th.
  • Yeolimdang has insisted on acquiring the management rights of T'way Holdings, while Daemyung Sono reportedly only wanted to acquire shares in T'way Air.
  • Both T'way Holdings and T'way Air are listed on the KOSPI, with Yeolimdang and related parties holding 46.91% of T'way Holdings. For T'way Air, Yeolimdang, T'way Holdings, and related parties own 30.06%, while Daemyung Sono holds 26.77% as the second-largest shareholder.
  • Yeolimdang is said to be pushing for Daemyung Sono to purchase T'way Holdings at a price that includes the actual value of T'way Air shares owned by Yeolimdang and T'way Holdings, which is about 3-4 times the current value of Yeolimdang's stake in T'way Holdings.
  • An IB industry insider explained, "Yeolimdang's demand is that Daemyung Sono should buy T'way Holdings even at a premium to gain management rights over T'way Air." With recent legal battles between the two sides being withdrawn, it is expected that Daemyung Sono will ultimately accept Yeolimdang's views.

 

 

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