Cargo

August 31, 2015 By Shannon Balliet

Cargojet, UPS reach services agreement

Cargojet Inc. (CJT.TO) announced that it entered into a new Air Cargo Service Agreement with United Parcel Service Canada Ltd. (UPS). The Agreement replaces the agreement originally entered into in 2003 to provide domestic overnight air cargo services throughout Canada.

“Cargojet is extremely pleased to have successfully extended our long-standing business relationship as the primary domestic air cargo service provider to UPS in Canada. Cargojet will continue to provide highly reliable and cost-effective overnight air cargo services to UPS,” said Ajay Virmani President and CEO of Cargojet.

The initial term of the agreement is for a ten-year period with two, three-year renewal options.

July 27, 2015 By Shannon Balliet

Pilots union, Cargolux reach agreement

A day after a 24-hour strike disrupted some cargo flights, a breakthrough was reached in what has been an ongoing battle since September 2014 between the management of Cargolux Airlines and Luxembourg’s OGBL, the center-left trade union representing pilots.

The two sides hashed out a new collective work agreement today, stating that newly hired pilots will have more available duty days. Among the other highlights of the deal, Cargolux will cap the number of aircraft to be used at subsidiary carrier Cargolux Italia – a major bone of contention – and will introduce a new profit-sharing system. The new agreement will be finalized and ready to sign by Sept. 16, a year after all the fireworks began.

Cargolux president and CEO Dirk Reich said he was happy to see the parties come to an agreement, while the OGBL’s Hubert Hollerich said the agreement would bring economic and social stability to the company and its employees.

July 7, 2015 By Shannon Balliet

Air cargo sector strengthens

The International Air Transport Association (IATA) announced an upward revision of its 2015 industry outlook to a $29.3 billion net profit. On expected revenues of $727 billion, the industry would achieve a 4 percent net profit margin.

This significant strengthening from the $16.4 billion net profit in 2014 reflects the net impact of several global factors, including stronger global economic prospects, record load factors, lower fuel prices, and a major appreciation of the U.S. dollar.

According to IATA, all regions are expected to see an improvement in profitability in 2015 compared to last year. There are, however, stark differences in regional economies, which are also reflected in airline performance. “The industry’s fortunes are far from uniform, but there are improvements,” says Tony Tyler, IATA’s director general and CEO. “We need to keep in mind that many airlines still face huge challenges.”

The IATA projects that over half the global profit will be generated by airlines based in North America ($15.7 billion). For these carriers, the margin on earnings before interest and taxation is expected to exceed 12 percent—more than double that of the next best performing regions of Asia-Pacific and Europe.

April 28, 2015 By Shannon Balliet

Venezuelan cargo airline launches at MIA

Transcarga International Airways, a Venezuelan company, officially launched its services at Miami International Airport last week. It’s the 40th cargo carrier serving the airport.

Transcarga will operate six cargo flights a week between Miami and Caracas, Venezuela.The carrier serves destinations in Latin America, the Caribbean and the U.S. with a fleet of 15 aircraft.

April 24, 2015 By Shannon Balliet

US Congress Approved Fast-Tracked Pacific Trade Deal

House and Senate committees this week easily agreed to give President Obama fast-track authority to negotiate a sweeping trade accord with Pacific nations, but the package of bills intended to speed completion of the deal also imposes difficult burdens on its negotiators.

Senators demanded tough limits on currency manipulation by trading partners of the United States and placed restrictions on the import of products made with child labor. One provision would prohibit consideration of trade agreements with any country considered a violator of human-trafficking rules, a seemingly noncontroversial addition. But it could knock Malaysia from the deal, a 12-nation accord still being negotiated known as the Trans-Pacific Partnership.

Another provision would preclude trading partners from organizing boycotts, imposing sanctions or pressing divestment on Israel — popular here, less so in the Muslim countries in the deal.

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