hkskyline
June 12th, 2005, 09:20 PM
Air cargo conditions souring in some markets, yields declining - CAPA
10 June 2005
SYDNEY (AFX) - Air cargo conditions are souring in some markets, the Center for Asia Pacific Aviation (CAPA) reported, citing a series of warnings from key carriers.
The Sydney-based aviation consultancy said difficult trading conditions in Europe and Australia are resulting in cargo overcapacity, causing sharp declines in yields, citing Cathay Pacific Airways.
Nevertheless, it said, the airline reported satisfactory cargo volumes in May despite the deterioration in trading conditions.
CAPA said the carrier has consistently warned in recent months that high fuel prices continue to erode margins and 'remain a concern' going forward.
It said Hong Kong Air Cargo Terminals Ltd continued to show strong growth in overall volume in May, with trans-shipment volumes rising a strong 30.4 pct year-on-year and reasonable export growth, up 6.7 pct in the same period, but import volumes were weaker, falling 7.9 pct year-on-year.
Meanwhile, CAPA said Thai Airways has scrapped plans to establish an air freight joint venture, originally scheduled to be operational by the end of June 2005, due to a pre-existing agreement with its labor union.
The agreement prohibits the airline from conducting business that its employees might have been able to perform.
The carrier will seek other ways to expand its freight and logistics operation, including leasing additional cargo capacity.
10 June 2005
SYDNEY (AFX) - Air cargo conditions are souring in some markets, the Center for Asia Pacific Aviation (CAPA) reported, citing a series of warnings from key carriers.
The Sydney-based aviation consultancy said difficult trading conditions in Europe and Australia are resulting in cargo overcapacity, causing sharp declines in yields, citing Cathay Pacific Airways.
Nevertheless, it said, the airline reported satisfactory cargo volumes in May despite the deterioration in trading conditions.
CAPA said the carrier has consistently warned in recent months that high fuel prices continue to erode margins and 'remain a concern' going forward.
It said Hong Kong Air Cargo Terminals Ltd continued to show strong growth in overall volume in May, with trans-shipment volumes rising a strong 30.4 pct year-on-year and reasonable export growth, up 6.7 pct in the same period, but import volumes were weaker, falling 7.9 pct year-on-year.
Meanwhile, CAPA said Thai Airways has scrapped plans to establish an air freight joint venture, originally scheduled to be operational by the end of June 2005, due to a pre-existing agreement with its labor union.
The agreement prohibits the airline from conducting business that its employees might have been able to perform.
The carrier will seek other ways to expand its freight and logistics operation, including leasing additional cargo capacity.