GENERAL NEWS

» BOEING PREDICTS that the global air cargo market will expand at 5.8 percent per year over the next two decades, with worldwide freight traffic tripling through to 2027. According to Boeing’s World Air Cargo Forecast 2008/2009, air cargo traffic will grow in the long term, despite short-term market weakness and worldwide economic uncertainty. The manufacturer released the biennial forecast at the International Air Cargo Forum and Exhibition 2008, in Kuala Lumpur. “Our research tells us that long-term economic growth, freighter fleet renewal and moderating jet fuel prices will stimulate air cargo traffic growth,” says Randy Tinseth, Boeing Commercial Airplanes’ vice-president of marketing. “These positive prospects will prevail despite the industry’s concerns about our current economic challenges.” Worldwide GDP expected to average just over 3 percent over the next 20 years, with China remaining a source of strong economic growth and solid production fundamentals anticipated in Asia. Asian air cargo market growth will continue to lead all global traffic routes, Boeing says. Domestic Chinese and intra-Asian markets will grow 9.9 percent and 8.1 percent per year, respectively, and Asia-related markets will experience growth in excess of the global average.

» BOC AVIATION, the Singapore-based aircraft leasing unit of Bank of China, announced additional firm orders for 20, single-aisle Airbus A320-family aircraft on 4 November at the Zhuhai Air Show in China. “Our latest orders reflect ongoing demand for leased aircraft from the A320 family at both full-service and low-cost airlines around the world,” says Robert Martin, BOC Aviation’s managing director and CEO. BOC, formerly known as Singapore Aircraft Leasing Enterprise, is the largest Asia-based aircraft leasing company. In all, the company has now ordered 98 single-aisle aircraft directly from Airbus, of which 58 have already been delivered. The lessor also has five A330-200F freighters on firm order for future delivery. Airbus has sold more than 6,300 A320-family aircraft and delivered more than 3,600, to some 280 customers and operators worldwide.

» CHINA AND Taiwan have signed an agreement substantially boosting the number of passenger flights between the territories and permitting regular cargo services. The deal was struck on 4 November, during Beijing’s highest-level visit to Taiwan - which China considers to be a rogue province - in 60 years. The new agreement triples the number of weekly, direct China-Taiwan charter flights to 108, and allows them to operate daily instead of four days a week. It also increases the number of available non-stop destinations in China to 21 from the current five. On the freight side, 60 direct cargo flights per month are now to be permitted - this will be the first time dedicated cargo flights are to be allowed between the two sides. Six Chinese airlines and five Taiwanese carriers now operate a total 36 weekly round-trip flights between the territories, after regular non-stop services were permitted in July.

» KINGFISHER AIRLINES has reportedly defaulted on lease payments on four Airbus A320 aircraft supplied by GE Commercial Aviation Services (GECAS). India’s Economic Times says that the US lessor has filed a complaint with India’s Directorate General for Civil Aviation (DGCA), seeking permission to repossess the jetliners, which it wants de-registered from the carrier. Kingfisher has denied any default, and obtained a court order to prevent the repossession. The report cites an unidentified Kingfisher official admitting there is a dispute going on with GECAS over the conditions of return of the aircraft.

Air China Cargo has ordered three BCF aircraft

» BOEING AND Air China Cargo announced on 4 November that the carrier will add three 747-400 Boeing Converted Freighters (BCF) to its fleet. Modification work on the three Combi aircraft, previously operated by Air China, will take place at Taikoo Aircraft Engineering (TAECO) in Xiamen, China. Air China Cargo now operates eight freighters, including three 747-400Fs delivered new in 2005, 2006 and 2008, two other leased 747-400Fs and three 747-200Fs. The carrier provides cargo services to 36 cities in 27 countries around the world. Modification work to the aircraft includes the addition of a side cargo door, a strengthened main-deck floor, full main-deck lining installation, provisions for a new cargo handling system and complete revisions to the airplane systems. The 747-400BCF has positions for 30 pallets on the main deck, which is comparable to the 747-400 production freighter.

» CHINA SOUTHERN Airlines’ parent company has said it plans to invest more than 10 billion yuan (US$1.46 billion) in Liaoning Airport Management Group, which owns Shenyang airport in north-east China. The transaction will see the owner of China’s largest airline by fleet size acquiring a 40 percent stake in the state-owned airport operator. China Southern already has substantial operations at Shenyang airport. China Southern Air Holding says it is investing in the airport owner to fund the facility’s expansion plans, which include the construction of a new terminal building.

FUEL PRICE UPDATE

» THE PRICE of jet fuel rose slightly at the end of October, slowing an overall downward trend from recent record levels. As of 31 October, the price stood at US$86 per barrel, or 204.8 US cents per gallon, down 28.8 percent from a month earlier and 22.6 percent lower than it was a year ago. The current price is still 2.35 times the level in 2000, when jet fuel sold for 87 US cents per gallon. According to IATA, the figure brings the average fuel price for 2008 to US$135.8 per barrel, causing an estimated year-on-year increase in the global airline industry’s 2008 fuel bill of some US$81 billion.

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