Author: Admin

Guidance to Remove Mask Mandate a Step Towards Normality

11 May 2022

Geneva – The International Air Transport Association (IATA) welcomed new guidance from the European Aviation Safety Agency (EASA) removing its recommendation that masks should be required in-flight.

EASA’s updated Aviation Health Safety Protocol, published 11 May, calls for the mandatory mask rule to be relaxed where rules have been relaxed for other transport modes. This important shift reflects the high levels of vaccination, natural immunity levels, and the removal of domestic restrictions in many European nations. The updated guidance also acknowledges the need to move from an emergency situation to a more sustainable mode of managing COVID-19.

“We welcome EASA’s recommendation to relax the mask mandate, which is another important step along the road back to normality for air passengers. Travelers can look forward to freedom of choice on whether to wear a mask. And they can travel with confidence knowing that many features of the aircraft cabin, such as high frequency air exchange and high efficiency filters, make it one of the safest indoor environments,” said Willie Walsh, IATA’s Director General.

Several jurisdictions still maintain mask requirements. That is a challenge for airlines and passengers flying between destinations with different requirements. “We believe that mask requirements on board aircraft should end when masks are no longer mandated in other parts of daily life, for example theatres, offices or on public transport. Although the European protocol comes into effect next week, there is no globally consistent approach to mask-wearing on board aircraft. Airlines must comply with the regulations applicable to the routes they are operating. The aircraft crew will know what rules apply and it is critical that passengers follow their instructions. And we ask that all travelers be respectful of other people’s decision to voluntarily wear masks even if it not a requirement,” said Walsh.

By Damian Brett

Airfreight rates on major east-west trades began to creep back up in April following the previous month’s decline, as demand began to rise in line with seasonal trends.

The latest figures from the Baltic Exchange Airfreight Index (BAI) show that in April the average rate from Hong Kong to North America reached $9.57 per kg, which is 12.9% up on a year earlier and an increase on the $8.18 per kg registered in March.

From Hong Kong to Europe average rates stood at $6.01 per kg, which is up 30.4% compared with last year and also an increase on the $5.09 per kg registered in March.

The month-on-month increase is in line with seasonal trends at this time of year as volumes begin to creep back up following Christmas and New Year holidays.

The year-on-year increase comes as the market continues to be buffeted by disruption as the Ukraine war has affected Asia-Europe flights and Covid lockdowns and travel restrictions in Shanghai and Hong Kong have also affected operations.

These developments come on top of the ocean shipping issues and air cargo capacity shortages that also affected the industry last year.

Rates from Shanghai, meanwhile, have been changing from week to week; while there are trucking issues and air cargo capacity has been reduced by around two thirds over the last few weeks, factory production has also been slashed due to the lockdown restrictions resulting in reduced demand.

Prices from Shanghai to North America in April had a peak of $10.12 per kg and a low of $9.12 per kg.

On the transatlantic, prices from Frankfurt to North America in April climbed to $5.40 per kg from $4.89 per kg a month earlier.

Post By : Rachayita Sidharth

Post Date : May 4, 2022

The International Air Transport Association (IATA) released air cargo data for March 2022 on 3rd May. The data suggested that global events like Omicron’s impact in Asia along with the Russia-Ukraine war and challenging operating backdrop has let to a decline in demand for air cargo. The data was presented on year-on-year basis and showed that the demand had dwindled even below pre-COVID levels and the capacity remains constrained.

Air cargo markets mirror global economic developments. In March, the trading environment took a turn for the worse. The combination of war in Ukraine and the spread of the Omicron variant in Asia have led to rising energy costs, exacerbated supply chain disruptions, and fed inflationary pressure. Peace in Ukraine and a shift in China’s COVID-19 policy would do much to ease the industry’s headwinds.”

Willie Walsh, IATA Director General

Global demand, measured in cargo tonne-kilometers (CTKs*), fell 5.2% compared to March 2021 (-5.4% for international operations).

Capacity was 1.2% above March 2021 (+2.6% for international operations). While this is in positive territory, it is a significant decline from the 11.2% year-on-year increase in February. Asia and Europe experienced the largest falls in capacity.

Several factors in the operating environment should be noted:

The war in Ukraine led to a fall in cargo capacity used to serve Europe as several airlines based in Russia and Ukraine were key cargo players. Sanctions against Russia led to disruptions in manufacturing. And rising oil prices are having a negative economic impact, including raising costs for shipping.

New export orders, a leading indicator of cargo demand, are now shrinking in all markets except the US. The Purchasing Managers’ Index (PMI) indicator tracking global new export orders fell to 48.2 in March. This was the lowest since July 2020.

Global goods trade has continued to decline in 2022, with China’s economy growing more slowly because of COVID-19 related lockdowns (among other factors); and supply chain disruptions amplified by the war in Ukraine.

General consumer price inflation for the G7 countries was at 6.3% year-on-year in February 2022, the highest since 1982.

Considering that, in the near future, there isn’t going to be leniency in COVID-19 restrictions and neither can we expect peace in Ukraine anytime soon, there can be a growth in the challenges air cargo is already up against. This is in light of the recovering passenger markets.

The IATA air cargo analysis showed that the inventory restocking cycle that had started during

the initial rebound from the pandemic in late-2020, and that led to businesses turning to air freight to rapidly meet demand, looks to have come to an end. Typically, such cycles are associated with over-performance of air cargo relative to other modes. Along with this, the sanctions against Russia have put a stop to the manufacturing activity around the world, which again contributes to a decline in the export orders in Q1 2022 (Germany, Japan, Korea). China being one of the major hubs for manufacturing activity, a decline in export orders means another hurdle in air cargo demand.

IATA also shared the regional performance of air carriers for the month of March 2022:

Asia-Pacific airlines saw their air cargo volumes decrease by 5.1% in March 2022 compared to the same month in 2021. Available capacity in the region fell 6.4% compared to March 2021, the largest drop of all regions. The zero-COVID policy in mainland China and Hong Kong is impacting performance.

North American carriers posted a 0.7% decrease in cargo volumes in March 2022 compared to March 2021. Demand in the Asia-North America market declined significantly, with seasonally adjusted volumes falling by 9.2% in March.  Capacity was up 6.7% compared to March 2021.

European carriers saw a 11.1% decrease in cargo volumes in March 2022 compared to the same month in 2021. This was the weakest of all regions. The Within Europe market fell significantly, down 19.7% month on month.  This is attributable to the war in Ukraine. Labor shortages and lower manufacturing activity in Asia due to Omicron also affected demand. Capacity fell 4.9% in March 2022 compared to March 2021. 

Middle Eastern carriers experienced a 9.7% year-on-year decrease in cargo volumes in March. Significant benefits from traffic being redirected to avoid flying over Russia failed to materialize. This is likely due to subdued demand overall. Capacity was up 5.3% compared to March 2021.

Latin American carriers reported an increase of 22.1% in cargo volumes in March 2022 compared to the 2021 period. This was the strongest performance of all regions. Some of the largest airlines in the region are benefitting from the end of bankruptcy protection. Capacity in March was up 34.9% compared to the same month in 2021.

African airlines saw cargo volumes increase by 3.1% in March 2022 compared to March 2021. Capacity was 8.7% above March 2021 levels.

Read the full report here: https://www.iata.org/en/iata-repository/publications/economic-reports/air-freight-monthly-analysis—march-2022/

By Damian Brett

Shipping giant AP Moller Maersk has launched its new air cargo business as it looks to meet customer demand for supply chain security.

The company, which owns the world’s largest container shipping line, said that its new Maersk Air Cargo business will be operational in the second half of the year and will utilise Denmark’s Billund Airport as its main hub and offer daily flights.

The new airfreight company is the result of the existing in-house aircraft operator, Star Air, transferring its activities into Maersk Air Cargo.

Last year, the company announced that it had purchased two new B777 Freighters to be delivered by Boeing in 2024 and leased three B767-300 Freighters which will be operational next year through Cargo Aircraft Management, the leasing arm of ATSG.

The B767 freighters will be utilised on US-China operation the company said.

Maersk’s ambition is to have approximately one third of its annual air tonnage carried within its own controlled freight network.

This will be achieved through a combination of owned and leased aircraft, replicating the structure that the company has within its ocean fleet.

The remaining capacity will be provided by strategic commercial carriers and charter flight operators.

The decision to launch an air cargo business comes as supply chains face continual disruption as a result of Covid lockdowns, port logjams and the Ukraine crisis.

Airfreight has provided some relief to companies looking to move urgent cargo to maintain supply chains.

Aymeric Chandavoine, global head of logistics and services at AP Moller–Maersk, said: “Airfreight is a crucial enabler of flexibility and agility in global supply chains as it allows our customers to tackle time-critical supply chain challenges and provides transport mode options for high value cargo.

“We strongly believe in working closely with our customers. Therefore, it is key for Maersk to also increase our presence in the global air cargo industry by introducing Maersk Air Cargo to cater even better for the needs of our customers.”

Torben Bengtsson, global head of air & less than container load, AP Moller–Maersk, added: “Maersk Air Cargo is an important step of the Maersk Air Freight strategy, as it will allow us to offer customers a truly unique combination of air freight integrated with other transport modes.

“We see an increased and continued demand for air cargo both today and going forward as well as a growing demand for end-to-end logistics, why it is important for us to strengthen our own-controlled capacity and advance further on our air freight strategy.”

The company said that Maersk Air Cargo also hopes to enter into an agreement with the Flight Personnel Union (FPU) which is a part of the Danish Confederation and Trade Unions (FH).

Jan Hessellund, chief executive of Billund Airport, said: “We have had growth, defied the corona and set a new record year in cargo in 2021. It does not happen without good partners, and we do what we can to make our partners good.

“Now Maersk Air Cargo enters the stage at Billund Airport and raises it a notch. We are incredibly proud that we are being chosen as Maersk’s European hub for air freight, and we look forward to developing the collaboration to even new heights.”

As well as investing in air cargo, the shipping company has also been adding to its forwarder network, recently acquiring Senator International which has a large presence in the air cargo market.

It followed this deal up with the purchase of Pilot Freight Services, another forwarder with a strong presence in air cargo.

Rival shipping line CMA CGM has also launched an air cargo business and became one of the first companies to order Airbus’ recently launched A350 freighter.

Geneva – The International Air Transport Association (IATA) announced passenger data for March 2022 demonstrating that the recovery of air travel continues. Impacts from the conflict in Ukraine on air travel demand were quite limited overall while Omicron-related effects continued to be confined largely to Asian domestic markets.

Note: We have returned to year-on-year traffic comparisons, instead of comparisons with the 2019 period, unless otherwise noted. Owing to the low traffic base in 2021, some markets will show very high year-on-year growth rates, even if the size of these markets is still significantly smaller than they were in 2019.

•             Total traffic in March 2022 (measured in revenue passenger kilometers or RPKs) was up 76.0% compared to March 2021. Although that was lower than the 115.9% rise in February year-over-year demand, volumes in March were the closest to 2019 pre-pandemic levels, at 41% below.  

•             March 2022 domestic traffic was up 11.7% compared to the year-ago period, far below the 59.4% year-over-year improvement recorded in February. This largely was a result of the Omicron-related lockdowns in China. March domestic RPKs were down 23.2% versus March 2019.

•             International RPKs rose 285.3% versus March 2021, exceeding the 259.2% gain experienced in February versus the year-earlier period. Most regions boosted their performance compared to the prior month, led by carriers in Europe. March 2022 international RPKs were down 51.9% compared to the same month in 2019.

“With barriers to travel coming down in most places, we are seeing the long-expected surge in pent-up demand finally being realized. Unfortunately, we are also seeing long delays at many airports with insufficient resources to handle the growing numbers. This must be addressed urgently to avoid frustrating consumer enthusiasm for air travel,” said Willie Walsh, IATA’s Director General.

March 2022 (% year-on-year)     World share1     RPK        ASK        PLF (%-pt)2         PLF (level)3

Total Market      100.0%  76.0%    46.0%    12.7%    74.7%

Africa    1.9%      76.4%    46.8%    11.0%    65.7%

Asia Pacific          27.6%    -17.9%  -14.9%  -2.3%     64.2%

Europe 24.9%    246.9%  162.8%  17.9%    73.9%

Latin America     6.5%      119.8%  94.3%    9.4%      80.8%

Middle East        6.5%      221.1%  88.5%    29.6%    71.8%

North America  32.6%    96.5%    48.6%    20.5%    83.9%

1% of industry RPKs in 2021   2year-on-year change in load factor   3Load Factor Level

 International Passenger Markets

•             European carriers continued to lead the recovery, with March traffic rising 425.4% versus March 2021, improved over the 384.6% increase in February 2022 compared to the same month in 2021. The impact of the war in Ukraine has been relatively limited outside of traffic to/from Russia and countries neighboring the conflict. Capacity rose 224.5%, and load factor climbed 27.8 percentage points to 72.7%.

•             Asia-Pacific airlines had a 197.1% rise in March traffic compared to March 2021, up over the 146.5% gain registered in February 2022 versus February 2021. While China and Japan remain restrictive to foreign visitors, other countries are becoming more relaxed, including South Korea, New Zealand, Singapore, and Thailand. Capacity rose 70.7% and the load factor was up 24.1 percentage points to 56.6%, the lowest among regions.

 •            Middle Eastern airlines’ traffic rose 245.8% in March compared to March 2021, an improvement compared to the 218.2% increase in February 2022, versus the same month in 2021. March capacity rose 96.6% versus the year-ago period, and load factor climbed 31.1 percentage points to 72.1%.

•             North American carriers experienced a 227.8% traffic rise in March versus the 2021 period, slightly down on the 237.3% rise in February 2022 over February 2021. Capacity rose 91.9%, and load factor climbed 31.2 percentage points to 75.4%.

•             Latin American airlines’ March traffic rose 239.9% compared to the same month in 2021, little changed from the 241.9% increase in February 2022 compared to February 2021. The region benefitted from the end of bankruptcy procedures for some of the main carriers based there. March capacity rose 173.2% and load factor increased 15.8 percentage points to 80.3%, which was the highest load factor among the regions for the 18th consecutive month.

•             African airlines had a 91.8% rise in March RPKs versus a year ago, improved compared to the 70.8% year-over-year increase recorded in February 2022 compared to the same month in 2021. Air travel demand is challenged by low vaccination rates on the continent as well as impacts from rising inflation. March 2022 capacity was up 49.9% and load factor climbed 14.1 percentage points to 64.5%.

Domestic Passenger Markets

March 2022 (% year-on-year)     World share1  

RPK        ASK        PLF (%-pt)2         PLF (level)3

Domestic             62.4%    11.7%    1.5%      7.3%      79.2%

Australia              0.8%      26.3%    17.6%    4.9%      71.5%

Brazil     1.9%      99.1%    67.5%    12.6%    79.1%

China P.R.            17.8%    -59.1%  -50.6%  -12.9%  62.0%

India      2.2%      32.3%    9.4%      14.3%    82.3%

Japan    1.1%      47.0%    54.6%    -2.9%     56.1%

US          25.6%    70.3%    34.4%    18.4%    87.2%

1% of industry RPKs in 2021   2year-on-year change in load factor 3Load Factor Level

•             China’s domestic traffic was down 59.1% in March, compared to March 2021, which was a large reversal compared to the 32.8% year-over-year growth recorded in February. This was owing to the drastic lockdowns and travel restrictions following the spread of Omicron in the country.

 •            India’s domestic RPKs rose 32.3% year-on-year in March, strongly reversing the 2.4% decline in February versus the prior year.

2022 vs 2019

March’s strong growth in most markers compared to a year ago, is helping passenger demand catch-up to 2019 levels. Total RPKs in March were down 41.3% compared to March 2019, an improvement compared to the 45.5% decline recorded in February versus the same month in 2019. The domestic recovery continues to outpace that of international markets despite the setback in China.

March 2022 (% ch vs the same month in 2019)    World share in1                RPK        ASK        PLF (%-pt)2         PLF (level)3

Total Market      100.0%  -41.3%  -35.5%  -7.3%     74.7%

International      37.6%    -51.9%  -45.2%  -9.9%     71.0%

Domestic             62.4%    -23.2%  -18.4%  -5.0%     79.2%

The Bottom Line

 “The ongoing recovery in air travel is excellent news for the global economy, for friends and families whose forced separations are being ended, and for the millions of people who depend on air transport for their livelihoods. Unfortunately, some government actions are emerging as key impediments to recovery. This is demonstrated most dramatically in the Netherlands.

Schiphol airport is being allowed by the regulator to repay itself on the back of airlines and consumers for COVID-19 losses with a 37% hike in airport charges over the next three years. Simultaneously, the airport has asked airlines to cancel bookings and new sales this week, at huge inconvenience to passengers, claiming shortfalls in airport staffing, including government provided security functions. And the government itself is planning to increase passenger taxes by EUR400 million annually with the stated purpose of discouraging travel.

Seeing the Dutch government work to dismantle connectivity, fail to provide critical airport operational resources and enable price gouging by its hub airport is a destructive triple whammy. These actions will cost jobs. They will hurt consumers who already struggling with price inflation. And they will deplete resources that airlines need to achieve their Net Zero sustainability commitment. The Dutch government has forgotten a key lesson from the COVID-19 crisis which is that everyone’s quality of life suffers without efficient air connectivity. It must reverse course, and others must not follow their terrible example. To secure the recovery and its economic and social benefits, the immediate priority is for governments to have plans in place to meet expected demand this summer. Many people have waited two years for a summer holiday – it should not be ruined through lack of preparation,” said Walsh.

Air cargo capacity out of Shanghai has been reduced to just a third of its level last year in response to the city wide lockdowns that have caused production to grind to a halt.

The latest statistics from Accenture’s Seabury Consulting show that in the first two weeks of April, cargo capacity from Shanghai Pudong (PVG) is 66.4% down on the same period in 2021.

Looking at how capacity has been reduced since the start of the lockdown, weekly cargo capacity between April 11-17 was 62.3% lower – at 15,800 tonnes – than the 41,900 tonnes recorded March 21-27.

Most of the reduction has come from non-Asia Pacific-based airlines which have reduced their capacity over that period by 75.7% to 4,100 tonnes.

Asia Pacific-based airlines have reduced their capacity by 53.4% to 11,700 tonnes.

The drop in capacity comes as airlines have reacted quickly to reduced production levels out of Shanghai due to the strict lockdown. Truck capacity has also come under pressure.

Where they can, companies have moved cargo through other Chinese hubs, although there have been reports that this has caused congestion at these airports.

Looking ahead, production around Shanghai is slowly beginning to come to life as hundreds of facilites have been able to restart work in an isolated closed-loop environment.

The first logistics providers are also being issued with passes allowing them to restart work.

Meanwhile, overall cargo capacity on a global basis was 6% down on pre-Covid levels April 4-27, according to Seabury.

The most notable drop comes on services from Asia to Europe with capacity down by 53% in the headhaul direction as a result of war in Ukraine and the Shanghai reduction.

China anticipates 77% drop in passenger traffic during Golden Week

By : Vyte KlisauskaiteVYTE KLISAUSKAITE

Chinese carriers anticipate a 77% year-on-year decrease in air passenger traffic during the Labour Day holiday period, according to the Civil Aviation Administration of China (CAAC).

During Golden Week, Chinese carriers are expected to carry just 2 million passengers (approximately 400,000 passenger per day), Liang Nan, director of the Transportation Department of the CAAC, announced during a press conference on April 28, 2022.

The negative forecast was attributed to low “willingness” to travel following the “severe and complicated” COVID-19 pandemic situation in China.

The Labour Day holiday in China, also known as the Golden Week period, begins on April 30 and ends on May 4, 2022. Golden Week in China is usually considered a busy and lucrative travel period for the country’s carriers. 

Passenger traffic numbers in March 2022 dropped 69% year-on-year, said Wu Shijie, deputy director of Aviation Safety Office of CAAC.

In March 2022, China’s Big Three airlines – Air China, China Southern Airlines (ZNH), and China Eastern Airlines (CIAH) (CEA) – saw the lowest passenger numbers since the beginning of the COVID-19 pandemic in 2020. The steep plunge in passenger traffic was attributed to the rapid spread of the Omicron variant and stringent quarantine measures across the country.  

China is considered to be one of the strictest places in the world in terms of quarantine requirements and travel restrictions resulting from the COVID-19 pandemic. As part of the country’s strict Zero-COVID policy, millions of people in China have been placed under lockdown.  

14 / 04 / 2022

By Rebecca Jeffrey

Shanghai lockdown measures that are impacting airfreight operations in the city and putting pressure on supply chains are expected to continue for the next two to three weeks.

This is according to Flexport, which warned that although there is light at the end of the tunnel for Shanghai, cities near Shanghai are also seeing a rise in Covid cases and some areas have begun implementing similar lockdown measures.

“Due to the limited availability of trucking resources, trucking rates are at high levels and seeing delays of around three to five days in pick up times. More than 80% of commercial freighter services have been cancelled and airlines are looking into potentially shifting operations to nearby airports,” added the supply chain specialist on April 12.

Air Cargo News recently reported that operations at Shanghai Pudong International Airport (PVG) remain constrained.

Looking at South China, Flexport said that ex-Hong Kong flight frequency has “still not recovered” due to the impact of pandemic quarantine measures and disruption to flight schedules due to the Ukraine crisis, however, “demand is improving since lockdown measures were lifted in Shenzhen”.

Cross-border trucking capacity is still around 20% of the original capacity, while the ex-Shenzhen market demand is improving but is highly affected by cross-border trucking capacity.

Some shipments from Shanghai are also being re-routed to Shenzhen, and airfreight rates have increased compared to the week before. Flexport added.

It said Taiwan’s market demand is relatively stable, but transit demand has “dropped significantly”, partly due to the Shanghai Pudong Airport operating constraints.

Meanwhile in Europe, capacity remains a concern. “Freighter capacity is heavily reduced and booking to uplift window is approx 10-14 days,” said Flexport.

“Deferred routings are still providing a viable routing option if already tight lead times can take it. We also see cheaper options on the market to secondary hubs where airlines have regular passenger flights.”

It added that rates are high but stable due to capacity constraints. Jet fuel prices, exacerbated by longer flight times to avoid Russian and Ukraine airspace, have started to drop, however Flexport said “the benefits will not be passed on till the market stabilizes”.

Norman Global Logistics said in an update on April 13 that due to the Shanghai lockdown operating restraints “airline handling has become almost impossible, due to lack of staff”.

The company added that many factories and warehouses are closed, while major reductions in trucking capacity is being caused by a shortage of drivers unable to reach workplaces or not able to cross borders; delays and shortages caused due to mandatory PCR tests; extended waiting times at cargo facilities; and restrictions on highways networks and cross border areas.

Dimerco added on April 11: “Traffic control for road transportation is getting more strict now.”  It said that cross-border trucking capacity continues to be very limited and a Shenzhen-Hong Kong freighter service has been launched in response to this capacity drop, although did not provide any more details on this service.

Valius VenckunasVALIUS VENCKUNAS

Travel chaos is an inevitable consequence of almost every holiday. During some holidays, the impact on the travel industry is minimal, but during others, it can be far more disruptive. 

This year, however, holidaymakers have already seen their Easter plans thrown into disarray. With warnings of further travel disruptions still to come, Easter 2022 could possibly be one of the most disruptive periods to date, with record traffic numbers, staff shortages and COVID-related absences all adding to the chaos. 

Usually, flight cancellations during the Easter holiday season are caused by one specific reason, rather than multiple events. For example, in 2021 the Easter period coincided with Delta Airlines (DAL), one of the largest American carriers, facing crew shortages due to several factors, including staff members reporting side effect following their COVID-19 vaccinations. Other airlines, particularly in Europe, managed to avoid the same fate, and the wave of flight cancellations were specific to Delta. 

In 2019, cancellations in Europe were largely confined to Spain, as the country faced widespread strike action by airport employees. In the US, severe storms disrupted schedules in multiple states, resulting in more than 1000 cancellations across the Eastern coast, while the remainder of the US was unaffected. 

2018 saw one of the worst Easters in aviation for decades, as travel in Europe was paralyzed by Eurocontrol system failures. In the US, a cyclone, dubbed ‘nor’easter’, led to thousands of cancelations during the week before the festive weekend.

Unprecedented chaos 

In 2022, however, it seems that many of these factors have combined to cause unprecedented chaos. And with the Easter weekend just a few days away, many European countries have already been reporting a surge in cancellations unlike anything the industry has experienced before. 

In the United Kingdom, airports have been impacted by a spike in COVID-related absences, resulting in delays and cancellations. The disruption is showing little sign of coming under control before the Easter weekend, as British Airways and easyJet, the nation’s two largest carriers, continue to suffer as a result of staff shortages and the resulting disruptions. 

Additionally, many popular holiday destinations, such as Spain and Malta, have scaled back restrictions ahead of the Easter break. Since then, Spain announced that it would be expanding its public transport schedules to cope with the increased demand, as well as the possible spillover of the chaos seen at UK airports. 

However, Spain and Portugal are still reeling from the aftermath of historic storms, with disruption expected to last for weeks to come. 

Strike action, standstills and staff shortages 

The outcome of strike action looms larger still with airport staff in at least five European countries, many of which are considered major travel destinations, having organized or announced strikes in the days leading up to Easter. 

A union strike by Italy’s air traffic control (ATC) workers is expected to have minimal effect on travel due to its short duration and preemptive measures to mitigate its impact, implemented by Spanish authorities. Similarly, unprecedented walkouts of German airport workers, which resulted in thousands of flights cancellations during the last week, appear to have led to agreements and a return to schedule. However, German airports have still reported a shortage of workers, warning that the numbers are inadequate to manage the surge in travelers during the Easter period. 

However, the impact of strike action by air traffic controllers in Poland is expected to be far greater. Conflict between ATC workers and the Polish Air Navigation Services Agency (PANSA) has resulted in staff shortages across the country’s airports leading to an unprecedented number of flight delays and cancellations. Alongside an increase in travel associated with the relaxing of COVID-19 restrictions and the wider effect of the war in Ukraine, the ongoing strike action has prompted Poland’s Civil Aviation Authority to issue a warning to passengers that the difficulties could continue. 

In Portugal, airport security companies, alongside baggage handlers from at least one major airport, called for strikes leading up to Easter. Similarly, an indefinite strike notice was issued by a Belgian trade union to Ryanair management in Dublin on behalf of the Belgium-based cabin crew of the low-cost airline. Lastly, Heathrow cargo handlers have also threatened to strike, a development that could bring air transportation in the UK to a near standstill.

Trade unions across Europe say the strikes are a response to major blunders in post-pandemic policy and planning that has resulted in airports being understaffed and employees overworked and underpaid. If true, this could be as devastating as the pandemic itself, at least in the short term. However, it is too early to tell if these factors will result in the worst Easter in the history of air travel. But, so far, the signs suggest that it could well be the case, as thousands of travelers face the possibility of spending a significant part of their Easter break stranded in European airports.

By Damian Brett

Shipping giant AP Moller Maersk has launched its new air cargo business as it looks to meet customer demand for supply chain security.

The company, which owns the world’s largest container shipping line, said that its new Maersk Air Cargo business will be operational in the second half of the year and will utilise Denmark’s Billund Airport as its main hub and offer daily flights.

The new airfreight company is the result of the existing in-house aircraft operator, Star Air, transferring its activities into Maersk Air Cargo.

Last year, the company announced that it had purchased two new B777 Freighters to be delivered by Boeing in 2024 and leased three B767-300 Freighters which will be operational next year through Cargo Aircraft Management, the leasing arm of ATSG.

The B767 freighters will be utilised on US-China operation the company said.

Maersk’s ambition is to have approximately one third of its annual air tonnage carried within its own controlled freight network.

This will be achieved through a combination of owned and leased aircraft, replicating the structure that the company has within its ocean fleet.

The remaining capacity will be provided by strategic commercial carriers and charter flight operators.

The decision to launch an air cargo business comes as supply chains face continual disruption as a result of Covid lockdowns, port logjams and the Ukraine crisis.

Airfreight has provided some relief to companies looking to move urgent cargo to maintain supply chains.

Aymeric Chandavoine, global head of logistics and services at AP Moller–Maersk, said: “Airfreight is a crucial enabler of flexibility and agility in global supply chains as it allows our customers to tackle time-critical supply chain challenges and provides transport mode options for high value cargo.

“We strongly believe in working closely with our customers. Therefore, it is key for Maersk to also increase our presence in the global air cargo industry by introducing Maersk Air Cargo to cater even better for the needs of our customers.”

Torben Bengtsson, global head of air & less than container load, AP Moller–Maersk, added: “Maersk Air Cargo is an important step of the Maersk Air Freight strategy, as it will allow us to offer customers a truly unique combination of air freight integrated with other transport modes.

“We see an increased and continued demand for air cargo both today and going forward as well as a growing demand for end-to-end logistics, why it is important for us to strengthen our own-controlled capacity and advance further on our air freight strategy.”

The company said that Maersk Air Cargo also hopes to enter into an agreement with the Flight Personnel Union (FPU) which is a part of the Danish Confederation and Trade Unions (FH).

Jan Hessellund, chief executive of Billund Airport, said: “We have had growth, defied the corona and set a new record year in cargo in 2021. It does not happen without good partners, and we do what we can to make our partners good.

“Now Maersk Air Cargo enters the stage at Billund Airport and raises it a notch. We are incredibly proud that we are being chosen as Maersk’s European hub for air freight, and we look forward to developing the collaboration to even new heights.”

As well as investing in air cargo, the shipping company has also been adding to its forwarder network, recently acquiring Senator International which has a large presence in the air cargo market.

It followed this deal up with the purchase of Pilot Freight Services, another forwarder with a strong presence in air cargo.

Rival shipping line CMA CGM has also launched an air cargo business and became one of the first companies to order Airbus’ recently launched A350 freighter.