News
Asia-Pacific cargo improves as Cargolux favours China joint venture
January 15th 2016
“The outlook for air freight and world trade remains fragile, but there are some more signs that earlier declines have bottomed out,” the International Air Transport Association (IATA) said in its latest traffic update, Read More » for November, but cautioned it was “too early to say if this cautiously positive development will be sustained, as the global economy remains fragile”.
For the Asia-Pacific region, which has a 39.5% share of the global freight market, IATA noted a 1.9% improvement in October-November figures. This, it said, “suggested the downward trend was bottoming out”. IATA’s optimistic figures stand in contrast to the Association of Asia Pacific Airlines’ (AAPA’s) November statistics, which said cargo carried across the region saw a continuing slide, with a 2.4% drop in FTMs, principally as a result of what it called “soft market conditions” in key manufacturing economies in Asia.
The disparity in numbers aside, Luxembourg-based Cargolux is expected to finalize a shareholder agreement to establish a joint venture (JV), “Cargolux China,” if approved at a shareholder meeting next Tuesday, the carrier told ATW.
The Luxemburger Wort, which cited the Minister for Sustainable Development and Infrastructure, François Bausch, said Cargolux could have a 35% stake in the new carrier and Zhengzhou-based Henan Civil Aviation Development & Investment Co. (HNCA) would hold 65%.
According to several media reports, Cargolux will invest approximately $75 million in establishing Cargolux China and either will lease or operate second-hand B747-400Fs from 2017. In the initial stages, the JV carrier expects to operate mainly regionally, but has long-term plans to expand into the China-U.S. and China-Latin America markets.
Indonesia also is looking at a successful 2016 for its cargo operations, after it ratified an ASEAN-led multilateral fifth-freedom agreement on the full liberalisation of air freight services last July. Seven new cities will open to freight operators under the agreement, including Palembang, Manado, Makassar and Biak. The Philippines has promised to open six of its cities, including Cebu, while Thailand plans to open seven cities, led by Bangkok and Phuket.
Indonesia National Air Carriers Association (INACA) head of cargo division, Boyke P. Soebroto, said 2016 “was a chance for Indonesian air cargo service providers to get into ASEAN industrial centres, both for imports and exports”.
He said the country’s international air cargo shipping volume stood at around 80,000 tons in 2014, one fifth of domestic air cargo shipping business. The domestic sector booked 400,000 tons during the same year. “But for this year, as we will have direct flights, I think it [volume] will increase by 40,000 tons,” he said.
