Tag: Air Transport

Competition on China-US Cargo Airlines to Get Stiffer

FedEx Express and NWA Cargo, the two world-leading cargo airline carriers, have both obtained permission from the US Department of Transportation to start four additional weekly flights to China, and that signals stiffer competition among cargo carriers flying between China and America, insiders said.

The newly-permitted additions, which go into effect in March 2007, will bring FedEx’s weekly flights to and from China to a total of 30, allowing FedEx to operate more all-cargo flights between China than any other US airline, according to a director for the China operation of FedEx Express.

Meanwhile, the added flights will also help NWA Cargo, Northwest Airlines Corp.’s cargo division, to further expand its freight services between the two countries, and then the carrier’s weekly all-cargo flights will be increased to 14, said a senior executive of NWA Cargo.

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U.S. Postal Service Renews ABX Air Contract for Indianapolis Hub

ABX Air, Inc. announced today that its subsidiary, ABX Cargo Services, has been awarded a new four-year contract to manage the U.S. Postal Service’s (USPS) terminal handling services in Indianapolis, Ind.
The contract is the third such award this year from the USPS for ABX. In July, ABX was awarded a contract to manage the USPS sort center in Dallas, Texas; in August, ABX was selected to manage the USPS sort center in Memphis, Tenn.
ABX has managed the USPS sort facility in Indianapolis since 2004. The new four-year contract expands ABX’s role there through October 2010 and is projected to generate USD 17.7 million in additional revenues for ABX over its term.
Under each of its USPS hub contracts, ABX will be compensated at a firm price for its fixed costs, plus an additional amount based on the volume of mail handled at each facility. Each contract provides for two, two-year extensions at the discretion of the U.S. Postal Service.

ABX Air is a cargo airline with a fleet of more than 100 aircraft that operates out of Wilmington, Ohio, and 18 hubs throughout the United States.

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FedEx gets more flights to China

FedEx Express announced on Wednesday that it was granted permission by the U.S. Department of Transportation to start additional weekly flights to China, bringing its total to 30.

The additions, which will go into effect in March 2007, will allow FedEx Express to operate more all-cargo flights to and from China than any other U.S. airline, the company said in a released statement.

FedEx Express is the cargo airline division of FedEx Corp., operator of the world’s largest express transportation company.

FedEx Corp. earlier this year announced a $400 million agreement to boost its presence throughout Asia by taking full control of a 50-percent joint venture begun in 1999 with the Tianjin Datian W. Group.

The joint venture handles international package shipments to and from China, and FedEx’s partner, which goes by the name DTW Group, also operates a domestic delivery network with 89 locations in cities across China.

Memphis-based FedEx said it hopes to complete the acquisition during its 2007 fiscal year, which began in June. The operation will become part of FedEx Express.

Shares of FedEx rose 42 cents to close at $100.54 on the New York Stock Exchange Wednesday.

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DHL Mexico releases its new air network, an investment of more than 200 million pesos.

DHL, the world’s leading express delivery and logistics company, announced all details concerning its new Air Network that will begin operations this week. The initial investment in 2005 was more than 140 million pesos. It is expected to increase to a total of 230 million pesos by 2007.

The decision to make this improvement is due in part, to the maintained volume growth that the company has registered within the last 15 months, which is more than 40 percent on shipments that require air routes.

With this evolution, DHL will fly about 3.1 million kilometers every year which add up to more than 6,200 flight hours. Annually, DHL will have the capacity to handle more than 4.8 million kilograms of packages; approximately 2 million kilograms more than the ones handled before the implementation of the new air network.

There will be 6 daily domestic flights, featuring new generation aircrafts. This will mean a great benefit for the clients who desire to make shipments from or towards the following destinations: Hermosillo, Ciudad Obregon, Ciudad de México, Ciudad Juarez, Chihuahua, Monterrey, Villahermosa, San Luis Potosí, Mazatlan, La Paz, and Guadalajara.

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