The airline said the move would “dramatically change the competitive dynamics of the air cargo market in Australia.”
Virgin Australia Cargo group executive Merren McArthur said: “Virgin Australia will now actively compete in the domestic and short-haul international cargo market for the first time.”
She said the carrier would leverage the “Virgin Australia customer-focused culture to deliver exceptional service at competitive rates.”
Virgin Australia Cargo has also launched a state of the art IT system, which will help the carrier optimize cargo capacity as well as providing tracking and customized reporting services for customers.
Virgin Australia’s existing exclusive arrangement with Toll Group will cease June 30, but its “long-standing partnership with Virgin Atlantic for the sale and management of cargo capacity on Virgin Australia’s long-haul services” will continue.
The IOTS World Congress Barcelona will attract the most outstanding international companies and experts in the sector to offer the most innovative applications of the Internet of Things to the industrial sector and discuss how this technology is going to transform the global economy in the coming years. Fira de Barcelona and the Industrial Internet Consortium, the sector's leading international association, are organizing the first global event to focus on the IoT as a solution for companies, business and the global market.
Fira de Barcelona announces it will host a new IoT global event, the IoT Solutions World Congress at the Gran Via Exhibition Centre on 16-18 September, 2015. The event will bring together international thought leaders and technology organizations to showcase the latest innovations and solutions available in the Internet of Things (IoT).
IoT technology connects the internet with everyday objects or industrial machinery in order to gather data and analytics that can help cut costs and optimize production. According to the Industrial Internet Consortium Executive Director Dr. Richard Soley: "The Industrial Internet is a technological phenomenon which is changing the way we work and live. It's not a futuristic concept - this change is happening now. Companies who don't want to be left behind, need to pay attention and start deploying solutions today."
As the IoT will affect all industries in the future, the IoT Solutions World Congress is targeted to industry players from all sectors including: manufacturing, hospitality, energy, transportation, logistics, construction, infrastructure, agriculture and healthcare. Roger Bou, the director of the IoT Solutions World Congress, says: "This new event aims to provide a bridge between technology and industry in every sector, offering genuinely practical applications so that companies attending the event will be the first to have an impact on the market in the future."
Fira de Barcelona is organizing the event in partnership with the Industrial Internet Consortium, the Industrial IoT organization founded by AT&T, Cisco, General Electric, IBM, and Intel to bring together organizations and technology with the goal of accelerating the growth, adoption, and widespread use of industrial IoT.
American Airlines Cargo started pharmaceutical handling facility in Philadelphia, PA. The company continues to invest in technology and enhancements that allow meeting and exceeding the expectations of ExpediteTC ° customers who have specific temperature requirements.
American Airlines Cargo offers both active and passive temperature-controlled shipping needs. The Procedures have been tested time and again, so it will help knowing the shipment will reach its destination at its desired temperature.
They use a unique, online high-visibility system to monitor and track all temperature-sensitive shipments. Pre-alerts are issued at origin, transfer and destination points, and detailed online tracking monitors shipments at every point along the way. Options are also available for customers to receive alerts via email or mobile phone on the status of their shipment.
Specifically designed to cater to a full range of pharmaceutical products, the 25,000-square-foot (2,325 m²), state-of-the-art facility is staffed/monitored 24 hours a day, 7 days a week and includes: 6,000 ft 2 (560 m²) for Controlled Room Temperature (CRT) passive shipments at +15°C to +25°C , A 3,000 ft 2 (280 m²) refrigerated area for passive shipments requiring +2°C to +8°C maintenance (COL) , A deep frozen area (FRO) that caters to shipments needing to be kept at -10°C to -20°C , An Active Container Management (ACM) area, including charging stations with capacity for simultaneous re-charging of 30+ RKNs ,Advanced technology for monitoring products with proactive alarming, validated to 0.25°C, A full back-up power generation system.
The Port of Barcelona will host the Annual Conference of the European Shortsea Network (ESN) next year, for the first time in Spain. The objective of this event, which will be organised by the Spanish Association for the Promotion of Short Sea Shipping (SPC-Spain) with the support of the Catalan enclave, as well as other partners (Grimaldi, GNV, Flota Suardíaz and Neptune Lines), will offer the opportunity to update and share developments and new trends in short sea shipping (SSS), as well as to contact counterparts and various sector agents. In addition to this, the European School of Short Sea Shipping is celebrating its tenth anniversary in 2016, which will be an additional incentive, as highlighted from SPC-Spain.
The 2015 edition took place in Copenhagen, where the most topical issues were dealt with, such as SSS market outlook, Motorways of the Sea, public-private financing, environmental impact, and safety in transport. Further, the options offered by the new CEF financial instrument for the Trans-European Transport Network (TEN-T), as well as some of the projects being developed under the TEN-T program, were explained in detail.
Barcelona El Prat Airport's shuttle train line connecting T1 and T2 with the city will enter the construction phase by the end of Jul-2015, according to Spain's Secretary of State for Infrastructure, Transport and Housing Julio Gómez Pomar (elperiodico.com/europapress.es, 06-Jul-2016). The project is reportedly drawing an investment of more than EUR200 million with between seven and nine million passengers p/a expected to use the service.
The second largest bank in the world has included Barcelona in its expansion plans, setting up its Spanish headquarters here.
The China Construction Bank (CCB) will inaugurate its first headquarters in Barcelona on July 1st, adding to offices in cities such as Paris, Milan and Amsterdam in the entity's expansion strategy
easyJet's recent announcement that it plans to open a new base at Barcelona El Prat Airport from Feb-2016 provides an opportunity to examine the recent traffic history of Europe's leading LCC airport. Barcelona is home to IAG subsidiary Vueling, the biggest operator at the airport and Europe's third largest LCC. Vueling's nearest competitors here are Ryanair and easyJet, ranked first and second among European LCCs.
The narrative at Barcelona remains substantially about short and medium haul and the main protagonists continue to be Europe's leading LCCs. However, there is an emerging sub-plot, albeit one that remains in the background for now. This concerns the global super-connectors, who aim to turn Barcelona's paucity of long haul destinations to their advantage.
Traffic growth at Barcelona was strong before the global financial crisis, but slumped in 2008 and 2009. It bounced back quickly in 2010 and 2011, before the demise of Spanair interrupted the resumption of rapid growth. After various twists and turns in the traffic growth path of the three leading airlines at Barcelona, all three now look ready to battle hard, particularly for business passengers.
The International Air Cargo Association (TIACA) announced new leadership, effective 21 May when current Chairman Oliver Evans and Vice Chairman Enno Osinga retire.
Sanjiv Edward, Head of Cargo Business at Delhi International Airport has been named as the next Chairman of TIACA, with Sebastiaan Scholte, CEO of Jan de Rijk Logistics named Vice Chairman. TIACA provided the following biographical notes:
* Sanjiv Edward has worked in the aviation industry for over 18 years, including more than a decade with British Airways. He completed his Executive Management Studies from the Oxford Brookes University and also served as a member of the high level Working Group constituted by the Ministry of Civil Aviation, India to formulate the Air Cargo Policy for India. He is one of the founding members of the Air Cargo Forum India and heads its Innovation Group.
* Sebastiaan Scholte has worked in the air freight industry for over 18 years, including with Aeromexico where he was VP Sales. He held senior management roles with Cargolux for eight years from 2002, and took over as CEO at Jan de Rijk Logistics in 2010. He holds a Global Executive MBA from the IESE Business School and is also Chairman of the Cool Chain Association.
TIACA is governed by its Trustee members who elect the Board of Directors to manage the Association’s affairs and establish its policy. The Chairman and Vice Chairman are elected by the Board for two year terms. What is interesting about the current appointments is that neither Mr Edward nor Mr Scholte works for an airline. Both have executive experience with airlines, but Sanjiv Edward now works for an airport and Sebastiaan Scholte for a road freight company. Historically, TIACA was primarily focused on the air freight business from the perspective of airlines, but recent years have seen a welcome (and neccessary) change toward representing all players in the air freight game — including airlines, airports, handlers, truckers, forwarders, and manufacturers. Outgoing Vice Chairman Enno Osinga, for example, was the head of cargo at Amsterdam’s Schiphol Airport.
Auckland, New Zealand is set to become the first destination when Hong Kong-based Cathay Pacific Airways launches the long-haul operation of its Airbus A350-900 in May 2016, following the first delivery of the game-changing aircraft next February, according to people familiar with the oneworld carrier’s preliminary plan. The initial year of A350 operation at Asia’s biggest international carrier will also see the aircraft being used to right-size its European route network, launch new long-haul thin routes whilst providing incremental growth opportunities for its constrained Australian operation.
The commencement of long-haul A350 operation follows roughly 3 months of regional deployment for crew familiarisation and the build-up of engineering station support readiness that will see Manila, Taipei Taoyuan International Airport, Singapore, Osaka Kansai, Bangkok and Ho Chi Minh City in Vietnam amongst the first cities receiving the carbonfibre composite jet.
The preliminary plan, still subject to change, also calls for the “selective replacement of a few B777 routes to current European destinations”, Aspire Aviation‘s multiple sources at Cathay Pacific said. The airline launched a 4 times weekly service to Manchester on December 8th last year and is slated to begin a 4 times weekly flight to Dusseldorf, Germany on September 1st. Replacing the 3-class 340-seat and 4-class 275-seat Boeing 777-300ER on these two routes with a 280-seat 3-class A350-900, for instance, provides the airline flexibility to either boost the flight frequency that business travellers prefer and generally carries a higher yield, or return on airfares measured in revenue per revenue passenger kilometre (RPK) while keeping a lid on the overall weekly capacity; or hasten the maturation process of these new routes by temporarily slashing short-term capacity in order to improve both load factors and yield. Should the airline ultimately decide to do so on such routes, the A350 will enable it to better optimise its product offerings to match market demand.
Meanwhile, Australia is on the radar for A350-900 deployment, with “some upsizing of some A330 services to one or two Australian ports is also being considered” towards the end of 2016, the same sources say. This makes much sense as Cathay Pacific’s number of weekly frequencies to the 4 Australian “capital cities” of Sydney, Melbourne, Brisbane and Perth is currently capped at 70 under the bilateral air services agreement (ASA) between Australia and Hong Kong, with the conversion of all Cairns and Adelaide flights to non-stop earlier this year lifting the weekly total to 74, thus leaving up-gauging the only viable growth option unless the cap is abolished. The airline has already moved one of its 4 daily Hong Kong-Sydney flights, CX138/139, to a 3-class 777-300ER and will be introducing a second 777-300ER flight on CX100/101 beginning 1st October, thus bringing the total capacity increase on the route to 18% for 2015.
Furthermore, not only will the A350 provide incremental growth opportunities for the Australian operation which is celebrating the 45th anniversary of serving Perth this year after the 40th anniversary of continuous non-stop Sydney service in 2014, the 280-seat A350-900 is arguably very fitting to the price elasticity of demand of the market, whose growth in traffic is predominantly driven by back-end economy class passengers. The A350-900, configured with 38 New Business Class, 28 New Premium Economy Class and 214 New Economy Class seats, has a 12.04% bigger Economy cabin than a 251-seat A330-300 with 39 Business, 21 Premium Economy and 191 Economy seats, thus hiking the economy ratio by over 6 percentage points to 82.3% from 76.1% (“Cathay Pacific begins the next chapter of growth“, Apr 8th, 15). The 251-seat A330-300, dubbed “33K”, itself saw the removal of 7 premium economy class seats and the addition of 16 economy seats from the 247-seat A330-300 “33G” configuration.
Given the unclear potential ramifications on the bilateral air traffic rights negotiation between Australia and Hong Kong after the decision of the Air Transport Licensing Authority (ATLA) to reject Jetstar Hong Kong’s application for a local air transport licence, in which the regulator used English and US persuasive precedents and applied the “nerve centre test” in determining Jetstar Hong Kong’s “principal place of business”, growing in Australia with the A350 from late-2016 onwards appears to carry the least risk and is independent of the negotiation outcome.
“The nerve centre has to be in Hong Kong. By nerve centre, the Panel looks at where and by whom the decisions regarding the key operations of an airline are made. Decisions are not those of the day-to-day operations only but also those which are relevant and crucial to the business of the airline. Its activities must not be subject to the control of senior management, shareholders or related parties located elsewhere,” the ATLA wrote.
Intriguingly, it is likely that there will be some months before Cathay Pacific announces the next round of network expansion with the A350, as the operational lead times of 6 months of building up engineering station support capability and gaining regulatory approvals, coupled with the delivery profile of 12 A350s in 2016, plus the aforementioned 777-300ER substitution plan and a possible Australian deployment, mean the launch of “a couple of new destinations” under consideration will be more progressive. Some of the frontrunners are understood to include Seattle, USA and Barcelona, the latter of which has 43.9% of Spain’s total origin and destination (O&D) traffic from Asia/Pacific and yet is significantly underserved with 94.2% of passengers originating from region being indirect in 2014, according to the Barcelona Air Traffic Intelligence Unit. Spain is targeting 1 million Chinese tourists by 2020 with a 20-25% annual growth, with Global Blue, a global duty-free retailer, estimating that a Chinese tourist spends €2,040 on a tour package plus €167 per day on fashion items on average, doubling the average Chinese tourist spend in Germany (“The quiet rebirth of Iberia“, 12th Feb, 15).
That said, the current focus at the airline is the induction of the A350-900 into its fleet, whose first full flight simulator (FFS) has been installed at the Flight Training Centre in the last week of May and the fuselage sections of its first example, MSN029, arrived at Airbus’s final assembly line (FAL) in Toulouse on 29th May.
Cathay Pacific will receive the remaining 10 A350-900s on order in 2017, which will feature the FB2+ New Business Class seats with customisation by Germany’s Porsche Design Group, improved table and personal television positions; in-flight Wi-Fi; and a new Economy tray service, before deliveries of 26 A350-1000s begin in 2018.