The air cargo sector is undergoing a demand slowdown due to global macroeconomic conditions. Post-Covid normalisation as well as global geopolitical crises, most notably in the form of military conflicts, have been the root cause.
Looking ahead, there is little confidence that this situation will improve drastically in the near term. This is partly due to rising interest rates and the termination of key government support programmes.
With customer demands getting more nuanced, a high level of flexibility seems to be the need of the hour. Air freight operators need to be nimble and provide solutions that lower operating costs and save time.
Here’s a quick fly-by of air cargo trends in 2024…
KiwiRail and Auckland Transport are already making changes to address issues raised by a report into track damage through Rolling Contact Fatigue that led to widespread speed restrictions across the Auckland rail network.
The Auckland RCF Working Group Root Cause Assessment Report, prepared for KiwiRail and Auckland Transport, identified multiple causes, with historic underinvestment in Auckland’s rail track infrastructure identified as one of the key factors. The report also pointed to insufficient rail grinding, poor underlying track condition, the design of the EMU trains and the wheel rail interface. Auckland’s climate is also another likely contributor.
KiwiRail Chief Operating Officer Todd Moyle acknowledged the report’s findings, and said work was already well advanced to implement recommendations made in the report.
Todd Moyle says that 130km of rail was replaced in just seven months and KiwiRail is now working through the second phase to repair the more complex sections of track.
The track remediation work is part of a $1.5 billion programme of work to modernise and improve the Auckland metro rail network. Other projects include the ‘third main’ project to ease congestion and allow for extra services on the busiest part of the network between Westfield and Wiri, the extension of electrification to Pukekohe, and three new stations at Drury and Paerata. When complete, Auckland commuters and freight customers will enjoy a more resilient and reliable network.
An Allegiant Air MD-83 passenger jet takes off from the Monterey airport
WASHINGTON (Reuters) – The U.S. Federal Aviation Administration (FAA) needs to improve its oversight to address maintenance issues at Allegiant Air, the 11th largest U.S. carrier, according to a report seen by Reuters on Tuesday.
The U.S. Transportation Department’s Inspector General, in a 31-page report sent to Capitol Hill on Tuesday but not yet made public, said FAA inspectors since 2011 have not “consistently documented risks associated with 36 Allegiant Air in-flight engine shutdowns for its MD-80 fleet or correctly assessed the root cause of maintenance issues.”
Ultra-low cost Allegiant, a unit of Allegiant Travel Co, said it had not yet see the report and did not have an immediate comment.
The FAA said in a letter attached to the report that it agreed with eight of the nine recommendations made by the inspector general and partially agreed with the remaining one.
Allegiant carried about 14 million passengers last year, serving 122 U.S. cities and Puerto Rico on 450 flight routes.
The inspector general opened the probe in May 2018 after a “series of in-flight engine shutdowns, aborted takeoffs, and unscheduled landings” raised concerns about maintenance practices.
The report said in-flight shutdowns at Allegiant “continued until July 2018 and were only resolved four months later when Allegiant Air retired the last of its MD-80 fleet.” Allegiant now flies an all Airbus fleet.
The report found in-flight engine shutdowns forced 21 Allegiant aircraft to return or divert to other airports between 2014 and 2018, but that regulators did not properly track engine shutdown risks.
A 2015 maintenance provider failure at Allegiant Air demonstrated “severe violations that represent unacceptable safety risks or could result in catastrophic outcomes should also warrant a more stringent oversight approach,” the report said.
The inspector general said the airline’s maintenance provider failed to insert a cotter pin on a critical flight control component that put some 30,000 passengers at risk.
The report said in August 2015, a pilot “almost lost control of this aircraft during takeoff when it unexpectedly tried to lift off prematurely” but was able to abort takeoff and land safely.
After inspectors proposed a 30-day suspension for Allegiant Air’s maintenance provider, FAA regional officials reduced the suspension to a compliance action. FAA inspectors closed out six of eight compliance actions before ensuring Allegiant Air actually took any corrective actions, the report found.
It also found that FAA does not provide inspectors with guidance and comprehensive training to ensure Allegiant Air takes appropriate corrective actions.
The FAA said it had “initiated compliance actions at Allegiant Air that have improved safety for the flying public.”
(Reporting by David Shepardson; Editing by Richard Chang and Bill Berkrot)
Airline passengers walk next to an Allegiant Air commercial flight near an air traffic control tower operated by Serco nc. at the Ogden-Hinckley Airport in Ogden
Boeing 787 Dreamliner performs air display during the second day of Dubai Air Show in Dubai
DUBAI (Reuters) – After insisting for 15 years that the superjumbo is the future, Emirates airline has been forced by the demise of the A380 to embrace smaller wide-body jets, resulting in a flurry of maneuvers between planemakers at this week’s Dubai Airshow.
The 555-seat A380 is near the end of production, setting off a series of interlocking deals as top buyer Emirates reviews its fleet against the backdrop of fragmenting travel demand. Delays in the 406-seat Boeing 777X also weighed in the shake-up.
“We have to face the reality of the cancellation of the (A380) program and the effect it has on our network, which is why we conducted a root and branch (review),” Emirates President Tim Clark told reporters at the airshow.
The double-decker A380 superjumbo and the big twin-engined Boeing 777, plus mid-sized 787s and A350s, were all spread out in front of VIP chalets – the queens, bishops and knights in a game of industry chess being played out across the globe.
Big jets tend to be profitable especially when full.
Periodically, the industry designs smaller planes that match both the range and efficiency of larger ones, allowing smaller pieces on the industry chess board to topple larger ones.
While reducing its remaining orders for A380s, Emirates placed an expanded order at the show for 50 Airbus A350s but shelved earlier plans to order the 330-seat A330neo, an upgrade of an earlier model.
It substituted part of an order for delayed 777X jets for 30 Boeing 787-9 Dreamliners – 10 fewer than originally planned in a tentative 2017 order – as part of a $25 billion order shake-up.
For passengers, the roughly 300-seat, lightweight mid-sized jets offer more choice and frequencies.
Many airlines say they can fly almost as profitably as the larger models but with less risk to the bottom line.
The downside? Planes fill more quickly and passengers can flee to other carriers. Airport congestion is also a concern.
Emirates insists the superhub model it pioneered – which takes advantage of Dubai’s location to capture global traffic using large aircraft – remains intact despite the new twist.
But the smaller planes allow some of its rivals to fly profitably with fewer commercial risks and this week’s deals imply Emirates no longer feels immune from such pressure.
“Given the changed environment, Emirates has been forced to adapt the tactics of some of the carriers they have been competing with,” said analyst Richard Aboulafia of Teal Group.
STALEMATE
The shift sparked frantic talks by planemakers to ensure their models were included in the new mix of Emirates’ mid-sized jets. Each suffered losses but the result was broadly a stalemate, analysts said.
Airbus suffered a setback with the loss of the A330neo at Emirates and may have to cut output, they said.
But it ensured its own A350 picked up the slack and won a ticket to any future contests to replace A380s still in service.
Boeing <BA.N> cemented a key win for the 787 after two years of uncertainty over the earlier provisional deal. But recent 777X delays opened the door to Emirates readjusting the blend in favor of the Airbus A350, at the expense of the 787.
Emirates’ decision to expand its A350 order coincided with cancellations for the same jet at Abu Dhabi’s struggling Etihad, prompting speculation of a politically balanced adjustment.
Airline officials strongly denied any link and Clark said planners had identified more room for future growth in revenues with the A350 than the A330neo, which would nonetheless remain “in the mix” for the future alongside more 777X purchases.
Analysts said the net result of reducing A380 and 777X orders and switching to smaller models was about 18,000 fewer seats on order than previously planned before the show,
which some analysts described as a response to overcapacity.
“Manufacturers have sold too many airplanes,” Adam Pilarski, senior vice-president at consultancy AVITAS, said.
While the spotlight fell on the Emirates wide-body order rejig, the Dubai show highlighted Boeing’s efforts to shore up confidence in its grounded 737 MAX with fresh sales and changes sweeping the narrow-body markets. Beefed-up single-aisle jets increasingly cover distances reserved for wide-bodies.
Sharjah’s Air Arabia <AIRA.DU> ordered 120 Airbus including 20 of the long-range 200-240-seat A321XLR. Sources say it may leapfrog northern Africa to fly non-stop as far as Casablanca, a mission currently served from neighboring Dubai by an Emirates A380.
“The single aisles are the pawns of the industry but very effective ones,” Rob Morris, head consultant at UK-based Ascend by Cirium, said.
(By Tim Hepher and Alexander Cornwell; Additional reporting by Ankit Ajmera; Editing by Susan Fenton)
Emiratis walk past an airbus A350 displayed at the Dubai Airshow on November 8, 2015. Dubai Airshow took off today to a slow start amid little expectations of major orders to match the multi-billion-dollar sales generated at the last edition of the biennial fair. AFP PHOTO/MARWAN NAAMANI (Photo by MARWAN NAAMANI / AFP)
