Air Freight Slowdown Continues - Several Regions in Decline

The International Air Transport Association (IATA) released data for global air freight markets showing a slowdown in growth for air cargo demand in June. Air freight volumes measured in freight tonne kilometers (FTK) rose just 1.2% compared to a year ago. This is consistent with falling trade activity and weaker than expected global growth.

Regional performance varied widely. Asia-Pacific, North American and Latin American carriers reported year-on-year declines (-0.3%, -3.3%, and -1.6% respectively) while European carriers reported that markets were flat. This was offset by the strong performance of Middle Eastern (+15.3%) and African (+6.7%) carriers to keep growth in positive territory. 

The general trend of a weaker 2015 compared to 2014 can be seen in the half-year data. Air freight markets expanded by 5.8% in 2014; however year-to-date growth for 2015 stands at 3.5%.

CHINA will build 70 NEW airport until the year 2015

China will build 70 new airports in the next three years. China ambitious expansion comes amid a slowing local economy.

Head of Civil Aviation Administration of China (CAAC), Li Jiaxiang, added from 2012 to 2015, local airlines will add 300 fleet per year. It is also listed in the five-year economic plan of China.

"China plans to build 70 new airports in recent years, increasing the number of airports that are now reaching 100 pieces," said Li Jiaxiang in high-level meeting the International Air Transport Association (IATA) in Beijing.

Li Jiaxiang also targeting a number of airports in China could reach 230 pieces at the end of 2015, while China airlines will operate more than 4,700 aircraft.

China will continue to expand aggressively while Chairman Tony Tyler IATA airline warned profits could be reduced by half this year due to high oil prices and the crisis in Europe.

Based on projections of IATA, the airline industry profits in the Asia-Pacific will reach U.S. $ 2 billion at the end of 2012, this figure is even less than half profit ever achieved in 2011 ago.

China's economic growth slowed to just 8.1 in the first quarter of 2012. A fairly slow growth in the last three years. However, the economic growth of the Chinese government adviser, Ma Kai, said the China aviation industry has tremendous growth potential. "Since 2005, the airline industry has recorded an annual growth of about 17.5%," he said.

Li Jiaxiang added that until the end of 2011, China already operates a 2888 commercial aircraft. A total of 1.2 million people working in this industry.

IATA: Soaring fuel costs will cut 2011 airline profits nearly 50pc

THE International Air Transport Association (IATA) has cut industry 2011 profit 2011 forecast to US$8.6 billion from last's year's $16 billion because of high oil prices.

"Today oil is the biggest risk. If its rise stalls global economic expansion, the outlook will deteriorate quickly," said Giovanni Bisignani, IATA's director general and CEO.

IATA raised its average oil price forecast to $96 per barrel, up from $84 in December, factoring in the impact of fuel hedging which is roughly 50 per cent of expected consumption.

"This year the industry is performing a balancing act on a very thin tight-rope of a 1.4 per cent margin. It is a structural problem that the industry has faced with an average margin of just 0.1 per cent over the last four decades," he said.

Oil prices could still damage the industry despite global GDP forecast increase of 3.1 per cent and demand in both passenger and cargo sectors, up 5.6 per cent and 6.1 per cent respectively. Cargo yields are up by 1.9 per cent from previous forecast of zero growth.

Regional winners continue to be Asia-Pacific at $3.7 billion collective profit although much reduced from the previous year's $7.6 billion through its exposure to low hedging on fuel price. Inflation fighting measures in China are also slowing trade and air cargo demand.

Middle East carriers are expected to return a profit of $700 million, much better than the $400 million previously forecast, but down from the $1.1 billion profit that the region posted in 2010.

source: shippingazette.com / picture: google.com

Implementation of Bar Code Boarding Passes by Airlines

The International Air Transport Association (IATA) has set a milestone in passenger traffic with the implementation of 100% worldwide with 2D bar code boarding passes (BCBP). BCBP replaces the previous generation of efficient and less costly magnetic stripe boarding pass.

"The magnetic strip boarding passes go on the way to a history museum next to the paper ticket. After the e-ticketing in 2008, switching to BCBP the next important step to the passengers more convenience and choice. Completing many tasks during the journey will now take seconds with the swipe of a bar code," said Giovanni Bisignani, IATA Director General and CEO.

The completion of the industry, offers passengers more choice in the check-in counter at an airport, at home, in a kiosk, or mobile device. BCBP also allows airlines to a single pass printing boarding several flights, simplifying travel for passengers in transit or those who travel on different airlines problem. In addition, BCBP opens the door for automated access to premium services. For example, with a scan of a BCBP, eligible passengers to access the fast track to safety or lounges.

Airlines issue over 2 billion boarding passes every year. The conversion of printed 2D BCBP was a five-year project and save the industry $ 1,500,000,000 per year. With the airlines to offer more, to receive the possibility of the barcode with a mobile device, we are well on the way to travel without papers, "said Bisignani.

Transition history

Boarding passes with magnetic strips that have been used since 1983, has several limitations for airlines and passengers that the bar code. Boarding passes expensive tape printer is at the airport check-in desk or in a cabin where passengers can receive their boarding card limits. The boarding passes with magnetic strips also expensive and exclusive role.

In the 1990s some companies to switch to one-dimensional barcodes (1D), which uses a series of parallel and perpendicular lines, similar to UPC codes, in order to identify products of the camp. This 1D was first used in the rail industry in the 1960s and are able to provide a limited amount of data.

The industry standard IATA airlines in 2005 is one of the two-dimensional (2D), known as the PDF417 code. This is more information on the basis of drawings of squares, dots and other geometric patterns. This code allows flexibility in size, ease of code reading and the support of many different types of scanners and printers. Print 2D code also allows the encryption and many functions.

The industry in 2008 agreed on a bar code standard for paperless, mobile passes. Data from the printed boarding card and mobile phone are the same, but the code looks like mobile devices is slightly different. Mobile 2D data can use the Aztec, or QR codes. About 30 airlines now offer mobile BCBP and usage should increase significantly in the short term.

After reaching the target of 100% bar code boarding passes (BCBP) was a joint effort of airlines, airports, service providers and IATA. More than 2,000 airports on board and  implementation was done by the StB Matchmaker. A secure web portal, StB Matchmaker allows airlines and airports for the exchange to prioritize, and coordinate requests for application effectively plan the use of a global standard. The tool provides information on 3,000 airport terminals and more than 200 airlines, creating a global database of over 10,000 records. The StB Matchmaker system will be expanded next year to facilitate the projects of Fast Travel and the IATA e-services.

picture: google.com