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Extrans Global Air Freight News - Week 14

1. Air Freight General

1) Ranked 2nd in the world for ICN airport air cargo last year

Ø 1st place for 2 consecutive years was HKG Airport, but showed a 16% decrease.

Ø  In terms of the number of international passengers, Dubai (DXB) ranked first, London (LHR) ranked second, and AMS, PAR, and IST airports ranked third, fourth, and fifth respectively.

 

2)  The outlook for the air cargo market in the second half of this year is “more optimistic“                     

Ø  Increase in the proportion of long-term contracts of more than 6 months between forwarders and shippers

- The increase in the proportion of 6-month long-term contracts between forwarders and shippers in the air logistics market eventually leads forwarders to predict future market prospects.

Evidence of more optimism.

-  In the first quarter of last year, the proportion of long-term air transport contracts between forwarders and shippers for more than six months was 36%, up from 23% in the fourth quarter of last year.

analyzed as a significant increase.

-  Global air cargo demand declined for 13 consecutive months, but March was the lowest year-on-year decline of 3% compared to the same period last year.

decline compared to the same period last year.

-  However, the rapid expansion of supply is a problem. In March, global air cargo supply increased by 16% compared to the same period last year,

 

It is outpacing demand growth, which is why airfares are weak.It is outpacing demand growth, which is why airfares are weak.

 

3)  China's three major airlines, deficits of more than 20 trillion won last year: 'Zero Corona' blockade aftermath"                

  • China's three major airlines recorded a total loss of 108.7 billion yuan (approximately 20.5274 trillion won) last year.
  • Due to the Chinese government's strong containment policy, the airway was blocked, and the effect of falling into a state of 'opening closure' was significant.
  • However, as the Chinese government abolished the “zero corona” policy and demand for travel is reviving, airline performance is expected to rebound sharply.
  • Air China, China Southern and Eastern Airlines announced that the total deficit recorded last year was about 108.7 billion yuan (about 20.53 trillion won).
  • CA (Air China) also suffered a net loss of 14.4 billion 943 million yuan (about 2.72 trillion won) in 2020.

Air China's sales last year were 52.898 billion yuan (approximately 9.9898 trillion won), down 29.03% from the previous year.

  • CZ (Southern Airlines) recorded a net loss of 32.682 billion yuan (about 6.173 trillion won), nearly three times larger than the previous year (12.13 billion yuan, about 2.2854 trillion won).

Sales were 87.059 billion yuan (approximately 16.4437 trillion won), down 14.35% from a year ago.

  • Eastern Airlines (MU) also recorded a net loss of 37.386 billion yuan (approximately 7.526 trillion won) last year, more than three times higher than the previous year.

Sales were 46.111 billion yuan (approximately 8.71 trillion won), down 31.31% from a year ago.

  • However, it is hoped that such a large deficit will be resolved in the near future.
  • “As the COVID-19 quarantine policy is eased, the increase in international flights is also accelerating,” he said.

 

It is expected that the performance of the airline will rebound significantly.

 

4) Joint operation of AF-KLM and CMA-CGM freighters: Strategic partnership operation such as platform reservation                 

 

 

 

 

 

  • In May of last year, Air France-KLM and CMA CGM agreed on a successful strategic partnership in the field of air cargo.
  • On the 3rd, the two sides announced the start of a strategic partnership with the goal of jointly using cargo planes for at least 10 years.
  • As a result, CMA CGM Air Cargo's 6 cargo planes and AF-KLM's 6 cargo planes will operate and jointly start sales marketing.

In particular, it is known that CMA CGM Air Cargo will include 8 cargo planes, which are scheduled to introduce additional orders in the future.

It seems to be able to provide a strong supply power.

  • It is possible to use the existing AFKLM's powerful global network, and to provide the market with a mixture of charter flight services in addition to regular flights,

CMA CGM Air Cargo's market position is expected to significantly strengthen.

  • If you use CMA CGM Air Cargo, you can make a reservation through myCargo, AF-KLM's cargo reservation platform.

It can also be used by combining regular flights and charter flights.

  • Currently, CMA CGM Air Cargo owns two B777Fs and four A330Fs, and AF-KLM also owns two 777Fs and four 747Fs.

 

5)  Airline/GSA Event update 

(1)  GREATER BAY AIRLINES(HB), ICNHKG Increased edition, part of 4/24

-  ICNHKG 3W->4W (Add D1) 1305/1640, B737-800

(2)  New T-WAY AIR (TW) ICNDMK service

-  ICNDMK DAILY TW103 1815/2215 B737, part of 4/27

-  ICNBKK DAILY TW101 1950/2355 A330, currently in service

-  T'way Air is Korea's first airline to simultaneously operate Bangkok's BKK and DMK.

(3)  UNITED AIRLINES(UA) ICNSFO increase part of 4/24

-  ICNSFO 5W(D13567) UA806 increase 1135/0615 B777, 4/24 part, DAILY increase part of 6/2

-  ICNSFO UA892 7W 1650/1125, B787-900 currently in service

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