Prathama Line

Local logistics companies recognised by EU-ASEAN

Logistics companies City Zone Express Malaysia and AMAZING Logistics and Supply Chain based in Thailand were awarded in Jakarta during the closing ceremony of the ARISE Plus Project.

The two outstanding companies received the Gold Partner awards for their involvement in the ASEAN Customs Transit System (ACTS) and were recognised for the high number of ACTS movements conducted in 2022.

ACTS was launched on 30 November 2020 as an online customs system that enables the private sector in ASEAN to benefit fully from the ASEAN Economic Community (AEC) and the free movement of goods across the region. ACTS was developed with the financial support of the European Union under the ARISE Plus programme

Satvinder Singh, Deputy Secretary General for AEC, said: “ARISE Plus has been instrumental in the implementation of the ASEAN Customs Transit System (ACTS), which has reduced costs, increased the speed of border clearance, and facilitated trade between ASEAN Member States,” H.E. Singh said in his opening remarks.

“The private sector has benefited significantly, with a 30 to 40 percent reduction in costs when using the ACTS compared to other transit modes available in the region,” he added.

“I would describe ACTS benefits as seamless clearance, faster transit, precise timing and cost reduction,” Mr S. Pirithivaraj Selvarajoo, Director of City Zone Express Malaysia said. “My motto for ACTS is perfect logistics and digital connectivity for present-day supply chain needs.”

“I discovered under ACTS we can shorten the transit time from Bangkok to Singapore,” Mr Witoon Santibunyarat, Group Managing Director of AMAZING Logistics and Supply Chain Thailand said. “It takes only two and a half days. This has never happened before!”

Established on 8 November 2012, the ARISE and its successor ARISE Plus have been the EU’s flagship programme in supporting ASEAN’s economic integration. For over 10 years, the project focused its support on four components: trade facilitation and regulatory transparency, standards and conformance, customs, transport and transit, monitoring and statistics.

“The success of the ACTS highlights the importance of continued collaboration between ASEAN, ASEAN Member States, ASEAN private sectors and international partners,” Igor Driesmans, Ambassador of the European Union to ASEAN, added. “As ASEAN’s strategic partner, the EU is committed to continue our support for ASEAN’s integration across all three pillars of the ASEAN Community”.

Other Topics: Air Cargo Network, Air Express, Air Freight Services, Air Logistics, Asia Pacific Air Cargo, Asia Pacific Air Freight, Asia Pacific Air Logistics, Asia Pacific Shipments, Cargo Flights, E-Commerce Logistics, Express Delivery, Express Logistics, International Air Shipments, International Express Delivery, Transpacific Air Cargo, Transpacific Air Freight

Air Cargo Priorities: Sustainability, Digitalization & Safety

Istanbul – The International Air Transport Association (IATA) highlighted three priorities to enable the air cargo industry to maintain momentum against the backdrop of a challenging operating environment. The priorities, outlined at the 16th World Cargo Symposium (WCS), which opened in Istanbul today are:

•    Sustainability

•    Digitalization

•    Safety

“Air cargo is a different industry than the one that entered the pandemic. Revenues are greater than they were pre-pandemic. Yields are higher. The world learned how critical supply chains are. And the contribution of air cargo to the bottom line of airlines is more evident than ever. Yet, we are still linked to the business cycle and global events. So, the war in Ukraine, uncertainty over where critical economic factors like interest rates, exchange rates and jobs growth are concerns that are real to the industry today. As we navigate the current situation, air cargo’s priorities have not changed, we need to continue to focus on sustainability, digitalization, and safety,” said Brendan Sullivan, IATA’s Global Head of Cargo. 

Sustainability

Sustainability is a critical priority and the aviation industry’s license to do business. Last October, at the 41st ICAO Assembly, governments agreed to the Long-Term Aspirational Goal (LTAG) of net zero carbon emissions by 2050, in line with the industry’s commitment adopted in 2021.

Sustainable Aviation Fuel (SAF) is critical to achieving this goal, 65% of carbon abatement will come from SAF, however, production levels remain challenging. IATA called for government incentives for production.

“SAF is being produced. And every single drop is being used. The problem is that the quantities are small. The solution is government policy incentives. Through incentivizing production, we could see 30 billion liters of SAF available by 2030. That will still be far from where we need to be. But it would be a clear tipping point towards our net zero ambition of ample SAF quantities at affordable prices,” said Sullivan.

IATA outlined three other areas where it was working to support the energy transition of the industry:

 •            Supporting effective carbon calculations and offsetting through the development of accurate and standardized emissions calculation methodology and the launch of CO2 Connect for Cargo later this year – a precise tool for calculating emissions from operations.

•             Expanding the IATA Environmental Assessment (IEnvA) to airports, cargo handling facilities, freight forwarders, and ramp handlers to allow the industry to drive commercial success, build trust in our sustainability actions, and positively impact the industry.

•             Developing environmental, social and governance (ESG) related metrics to cut through the many methodologies in circulation with ESG Metrics Guidance for Airlines.

Digitalization

Air cargo needs to continuously improve its efficiency. The area with greatest potential is digitalization. IATA outlined three goals:

•             100% airline capability of ONE Record by January 2026. This initiative will replace the many data standards used for transport documents with a single record for every shipment. The Cargo Services Conference agreed on Sunday that it wants to achieve 100% airline capability by 1 January 2026 and the Cargo Advisory Council supports this vision.

•             Ensuring digital standards are in place to support the global supply chain. Guidance has been finalized on tracking devices – the IATA Interactive Cargo guidelines – used to monitor the quality and accuracy of conditions of time and temperature sensitive goods being shipped across the world.

•             Ensuring compliance and support for customs, trade facilitation and other government processes that are increasingly digitalized. Digitalization plays an important role in evolving strategies for trade facilitation, reducing operational barriers at borders and managing the flows of goods securely.

Safety

“Alongside sustainability and efficiency is safety. The agenda for air cargo continues to be dominated by lithium batteries. A lot has been done. But, quite honestly, it is still not enough,” said Sullivan.

IATA outlined three safety priorities for air cargo:

 •            Stopping rogue shippers, Civil aviation authorities must take strong action against shippers not declaring lithium batteries in cargo or mail shipments.

•             Accelerating the development of a test standard for fire-resistant aircraft containers with a fire involving lithium batteries.

•             Ensuring recognition from governments of the single standard to identify all lithium battery powered vehicles which comes into effect from 1 January 2025.

Value of Air Cargo

“Air cargo is a critically important industry. It helps build a better future for the people of the world. it’s an industry that saves lives, delivering aid and relief to those in need. The industry mobilized to support those affected by the earthquakes in Syria and Türkiye. Working together to ensure that air cargo remains a reliable and efficient means of providing support to those in need, while simultaneously strengthening our global supply chains and contributing to the sustainable development of our economies is essential,” concluded Sullivan.

Court Decision to Halt Schiphol Airport Flight Cuts is ‘Reprieve’ for Passengers, Airlines, and the Dutch Economy

The Hague – The International Air Transport Association (IATA) reacted positively to the decision by the Dutch court to uphold the legal challenges lodged by IATA, KLM and other airlines against the Dutch government’s ‘experimental regulation’ to cut Schiphol airport’s flight limit to 460,000 from November 2023.

IATA Director General Willie Walsh said: “We welcome the judge’s decision. This case has been about upholding the law and international obligations. The judge has understood that the Dutch government violated its obligations in shortcutting processes that would bring scrutiny to its desire to cut flight numbers at Schiphol. This decision gives vital stability for this year to the airlines using Schiphol airport and maintains the choice and connectivity passengers value.

Winning this vital reprieve is good news for Schiphol’s passengers, Dutch businesses, the Dutch economy and airlines. But the job is not done. The threat of flight cuts at Schiphol remains very real and is still the stated policy of the government. Schiphol airport themselves yesterday announced night flight cuts without consultation. Airlines understand the importance of resolving issues such as noise. The Balanced Approach is the correct EU and global legally-enshrined process for managing noise impacts. It has helped airports around the world successfully address this issue.”

Q&A

What was the legal challenge about?

The Dutch government has recently decided to reduce the number of flight movements at Schiphol from 500,000 to 440,000 per year. We believed no legal basis existed for this reduction: it violates international treaties and European regulations. Governments can lower the number of flight movements in order to reduce noise, but only after having after a careful process, consisting of e.g. assessing the current noise level, setting a noise goal and considering alternative measures. This did not occur. The 440,000 cap is not a means to an end, but the objective. The Dutch government also sought to accelerate the implementation of this reduction by introducing an experimental regulation with an interim cap of 460,000 flight movements from 1 November 2023. We believed this interim cap is also subject to – and therefore in violation of – international treaties and European regulations.

IATA and airlines that fly into Schiphol sought to halt the application of this experimental regulation. KLM and other carriers based at Schiphol have launched a similar legal action. The carriers that joined IATA’s action were: Air Canada, United Airlines, FedEx, JetBlue, British Airways, Vueling, Lufthansa, and Airlines for America.

What was the judge’s decision?

The judge ruled that the State had not followed the correct procedure in introducing the proposed temporary regulation. According to European rules, the State can only reduce the number of aircraft movements at an airport after going through a careful process. This process entails, among other things: the State must identify various measures that can reduce noise pollution, the State must consult all interested parties, and a reduction in the number of aircraft movements is only allowed if it is clear that other measures to limit noise pollution are insufficient. The Interim Injunction Judge noted that the State had started that procedure for the proposed reduction of the number of aircraft movements to 440,000 per year starting in the 2024/2025 season. But the State did not follow this procedure for the proposed temporary regulation in which the State wants to reduce the maximum number of allowed aircraft movements to 460,000 for the upcoming 2023/2024 season. Therefore the ruling states that the Dutch State may not reduce the number of aircraft movements at Schiphol from 500,000 to 460,000 for the season 2023/2024.

 Why had the Dutch government ordered a cut in flight numbers?

The Minister for Water and Infrastructure in the coalition Dutch government is responding to the concerns of some residents who are principally concerned about noise. Local air quality and some greenhouse gas emissions (nitrogen and CO2) have also been listed as ‘concerns’ but are not the reason for the cut. A letter (24.6.22) from Minister Marc Harbers to the President of the House of Representatives in the Hague states that the noise nuisance is the objective, but the Minister also admits that he has not yet investigated noise nuisance or set a specific nuisance objective, which are both requirements before being allowed to apply such restrictions:

On what basis were IATA and other plaintiffs seeking to have the ‘experimental regulation’ ruled unlawful?

IATA and the co-plaintiffs believe that the Dutch government must follow the Balanced Approach (BA), a process and methodology for mitigating noise at airports. The BA, which is enshrined in ICAO Annex 16 (part of the Chicago Convention, to which the Netherlands is party), international treaties and also in European Regulation 598/2014, explicitly states that flight reductions should be a last resort, only used when other possible measures have been exhausted. These measures include an objective determination of the noise situation and the noise objective; an inventory of possible measures; an estimation of the cost-effectiveness of those measures; operating restrictions as a last resort; and the principles of proportionality and non-discrimination. In IATA’s view, the government has not followed this process.

Why does this matter so much to airlines?

There are multiple reasons, including:

•             The need for clarity of the application of the BA in international and European law. Airlines wish to have legal certainty and a government should be compliant with its legal obligations. •             The most pressing priority is to have certainty for the Winter Season schedules, which are

Air Cargo Shows Signs of Improvement in February

Geneva – The International Air Transport Association (IATA) released data for February 2023 global air cargo markets showing that air cargo demand rose above pre-pandemic levels.

•             Global demand, measured in cargo tonne-kilometers (CTKs*), fell 7.5% compared to February 2022 (-8.3% for international operations). This was half the rate of annual decline seen in the previous two months (-14.9% and -15.3% respectively). February demand for air cargo was 2.9% higher than pre-pandemic levels (February 2019)—the first time it has surpassed pre-pandemic levels in eight months.

•             Capacity (measured in available cargo tonne-kilometers, ACTK) was up 8.6% compared to February 2022. The strong uptick in ACTKs reflects the addition of belly capacity as the passenger side of the business continues to recover. International belly-capacity grew by 57.0% in February year-over-year, reaching 75.1% of the 2019 (pre-pandemic) capacity.

 •            Several factors in the operating environment should be noted:

 o            The global new export orders component of the manufacturing PMI, a leading indicator of cargo demand, continued to increase in February. China’s PMI level surpassed the critical 50-mark indicating that demand for manufactured goods from the world’s largest export economy is growing.

o             Global goods trade decreased by 1.5% in January; this was a slower rate of decline than the previous month of -3.3%.

o             The Consumer Price Index for G7 countries decreased from 6.7% in January to 6.4% in February. Inflation in producer (input) prices reduced by 2.2 percentage points to 9.6% in December (last available data).

”The story of air cargo in February is one of slowing declines. Year-on-year demand fell by 7.5%. That’s half the rate of decline experienced in January. This shifting of gears was sufficient to boost the overall industry into positive territory (+2.9%) compared to pre-pandemic levels.  An optimistic eye could see the start of an improvement trend that leads to market stabilization and  a return to more normal demand patterns after dramatic ups-and-downs in recent years,” said Willie Walsh, IATA’s Director General.

February (% year-on-year)          World share1     CTK        ACTK     CLF (%-pt)2         CLF (level)3

Total Market      100.0%  -7.5%     8.6%      -7.9%     45.6%

Africa    2.0%      -3.4%     4.7%      -3.9%     46.8%

Asia Pacific          32.4%    -6.0%     19.9%    -12.8%  46.4%

Europe 21.8%    -15.3%  -1.5%     -9.4%     57.4%

Latin America     2.7%      -2.7%     27.6%    -11.2%  36.1%

Middle East        13.0%    -8.1%     9.3%      -8.4%     44.5%

North America  28.1%    -3.2%     2.8%      -2.5%     40.0%

1 % of industry CTKs in 2022  2 Change in load factor  3 Load factor level

February Regional Performance

•             Asia-Pacific airlines saw their air cargo volumes decrease by 6.0% in February 2023 compared to the same month in 2022. This was a significant improvement in performance compared to January (-19.0%).  Airlines in the region benefitted from China’s reopening, which saw restrictions lifted and economic activities resumed. Available capacity in the region increased by 19.9% compared to February 2022 as more and more belly capacity came online from the passenger side of the business.

•             North American carriers posted a 3.2% decrease in cargo volumes in February 2023 compared to the same month in 2022. This was a solid improvement in performance compared to January (-8.7%).  Notably, the region saw a significant increase in international demand in February which boosted its market share in international cargo traffic to beyond pre-pandemic levels (21.7% in Feb 2023 versus 18.2% in Feb 2019). Capacity increased 2.8% compared to February 2022.

•             European carriers saw the weakest performance of all regions with a 15.3% decrease in cargo volumes in February 2023 compared to the same month in 2022. This was an improvement in performance compared to January (-20.4%). Airlines in the region continue to be most affected by the war in Ukraine. Capacity decreased 1.5% in February 2023 compared to February 2022.

•             Middle Eastern carriers experienced an 8.1% year-on-year decrease in cargo volumes in February 2023. This was a slight improvement to the previous month (-11.8%). Capacity increased 9.3% compared to February 2022.

•             Latin American carriers reported a 2.7% decrease in cargo volumes in February 2023 compared to February 2022. This was a drop in performance compared to January which saw a 4.6% increase. Capacity in February was up 27.6% compared to the same month in 2022. 

•             African airlines saw cargo volumes decrease by 3.4% in February 2023 compared to February 2022. This was an improvement in performance compared to the previous month (-9.5%). Notably, the Africa to Asia route area experienced significant cargo demand growth in February, up 39.5% year-on-year. Capacity was 4.7% above February 2022 levels.

Nippon Cargo Airlines to rejoin ANA

Nippon Cargo Airlines is set to be reunited with former stakeholder All Nippon Airlines after its Nippon Yusen Kaisha (NYK) announced its plan to transfer all shares of the all-cargo airline to ANA.

The deal is scheduled to close by 1 October 2023, and experts surmise that NCA has become ‘too costly’ for the NYK Group with a ‘looming fleet renewal not helping the case.

In a statement, NYK said “the continuous introduction of new aircraft to expand the operation and maintenance system, and the continuous training of personnel engaged in operation and maintenance required a considerable expenditure.”

“In the highly volatile business environment of airfreight transportation, NCA has been facing challenges in expanding its business scale at a level that is commensurate with such costs.”

“In order for NCA to achieve further growth and increase corporate value from a long-term perspective which include environmental responsiveness, we believe that it is the best option to transfer shares of NCA to ANAHD which operates the same business.”

Payload Asia learned that ANA sold a 27.6 percent stake it had in NCA to NYK back in 2005. Five years later NYK acquired all shares of NCA back in 2010 with aspirations of becoming a comprehensive logistics company offering ocean, land, and air transportation. NCA is a dedicated cargo airline with a network across Europe, US, and Asia.

Other Topics: Air Cargo Network, Air Express, Air Freight Services, Air Logistics, Asia Pacific Air Cargo, Asia Pacific Air Freight, Asia Pacific Air Logistics, Asia Pacific Shipments, Cargo Flights, E-Commerce Logistics, Express Delivery, Express Logistics, International Air Shipments, International Express Delivery, Transpacific Air Cargo, Transpacific Air Freight

Nominations Open for 2023 IATA Diversity and Inclusion Awards

Geneva – The International Air Transport Association (IATA) announced the opening of nominations for the 2023 IATA Diversity and Inclusion Awards. Nominations will be accepted from all individuals or organizations working in the aviation value chain and will close at 23:59 CET on 19 April 2023.

The annual awards program recognizes excellence in diversity and inclusion in three categories:

 •            Inspirational Role Model Award: Recognizes a woman holding a senior position within the air transport industry who has had a significant impact on the aviation agenda through her strong contribution to business delivery, as well as her ongoing support for the diversity and inclusion agenda. Nominees are welcome from across the aviation industry.

•             High Flyer Award: Recognizes a woman aviation professional under the age of 40 who has demonstrated leadership through concrete action in favor of diversity and inclusion, making a positive impact on the industry. Open to all women professionals in the aviation industry.

•             Diversity & Inclusion Team Award: Recognizes an airline that has seen measurable positive change in diversity and inclusion as a result of the work it has been doing in this area. Open to all IATA member airlines.

“Diversity and inclusion are top priorities across the aviation industry—particularly as the industry competes for the next generation of talent to deliver the benefits of global connectivity. The IATA Diversity and Inclusion Awards help accelerate progress by recognizing the leaders who are making a difference. By acknowledging the results that they have generated, we are aiming to inspire others to also take action to advance aviation’s gender balance. I encourage people to send in their nominations and look forward to shining the spotlight on the winners at our upcoming Annual General Meeting and World Air Transport Summit in Istanbul,” said Willie Walsh, IATA’s Director General. 

Each award winner will receive $25,000 (payable to the awardee or their nominated charity for diversity and inclusion activities) thanks to the generous sponsorship of Qatar Airways.

Qatar Airways Group Chief Executive, HE Akbar Al Baker said: “We have taken several initiatives to promote diversity and inclusion within our airline, which we believe is essential to remain strong and have a broad representation where everyone can thrive in our industry. The IATA Diversity and Inclusion Awards celebrate the efforts of all the organizations which is why we have been a supporter since the program was launched in 2019. We will continue to work collaboratively with IATA to inspire leaders in the industry, promote equality and make a positive impact by providing an inclusive environment.”

Gender diversity matters to travelers. The IATA Passenger Survey (November 2022) found that 64% of travelers prefer to fly with airlines that are leaders in gender diversity. The importance of gender diversity ranks even higher for younger age groups with 84% of 18- to 34-year-olds, and 77% of 35- to 44-year-olds, expressing a preference for airlines with a strong commitment to gender diversity.

This year’s nominations will be evaluated by an independent judging panel chaired by Karen Walker, Editor-in-Chief, Air Transport World, and consisting of the 2022 Awards recipients:

•             Güliz Öztürk, CEO of Pegasus Airlines;

•             Kanchana Gamage, Founder and Director of the Aviatrix Project;

•             Alina Aronberga, Senior VP Human Resources, airBaltic.

Details for the submission of nominations are available on the IATA website.

The winners of the 2023 IATA Diversity & Inclusion Awards will be announced at IATA’s 79th Annual General Meeting & World Air Transport Summit.

Passenger Demand Stays Strong in January

Geneva – The International Air Transport Association (IATA) announced that the recovery in air travel demand is continuing in 2023, based on January traffic results.

 •            Total traffic in January 2023 (measured in revenue passenger kilometers or RPKs) rose 67.0% compared to January 2022. Globally, traffic is now at 84.2% of January 2019 levels.

 •            Domestic traffic for January 2023 rose 32.7% compared to the year-ago period, helped by the lifting of the zero-COVID policy in China. Total January 2023 domestic traffic was at 97.4% of the January 2019 level.

 •            International traffic climbed 104.0% versus January 2022 with all markets recording strong growth, led by carriers in the Asia-Pacific region. International RPKs reached 77.0% of January 2019 levels.

“Air travel demand is off to a very healthy start in 2023. The rapid removal of COVID-19 restrictions for Chinese domestic and international travel bodes well for the continued strong industry recovery from the pandemic throughout the year. And, importantly, we have not seen the many economic and geopolitical uncertainties of the day dampening demand for travel,” said Willie Walsh, IATA’s Director General.

January 2023 (% year-on-year)  World share1     RPK        ASK        PLF (%-pt)2         PLF (level)3

Total Market      100.0%  67.0%    35.5%    14.7%    77.7%

Africa    2.1%      113.8%  76.9%    12.8%    74.2%

Asia Pacific          22.1%    114.9%  58.8%    20.2%    77.4%

Europe 30.7%    53.2%    27.1%    13.0%    76.2%

Latin America     6.4%      24.3%    20.0%    2.8%      81.3%

Middle East        9.8%      91.1%    42.5%    20.1%    79.1%

North America  28.9%    42.2%    19.6%    12.5%    78.4%

1% of industry RPKs in 2022   2year-on-year change in load factor   3Load Factor Level

 International Passenger Markets

•             Asia-Pacific airlines posted a 376.3% increase in January traffic compared to January 2022, by far the strongest year-over-year rate among the regions, but off of a very low base when much of the region was still closed to travel. Capacity rose 167.1% and the load factor increased 36.6 percentage points to 83.3%, the highest among the regions.

•             European carriers saw a 60.6% traffic rise versus January 2022. Capacity increased 30.1%, and load factor rose 14.2 percentage points to 75.0%.

•             Middle Eastern airlines’ January traffic rose 97.7% compared to January a year ago. Capacity increased 45.9% and load factor climbed 20.8 percentage points to 79.2%.

 •            North American carriers reported an 82.4% traffic increase in January versus the 2022 period. Capacity rose 37.3%, and load factor climbed 19.7 percentage points to 79.6%.

 •            Latin American airlines had a 46.8% traffic increase compared to the same month in 2022. January capacity climbed 34.3% and load factor rose 7.1 percentage points to 82.7%, the second highest among the regions.

 •            African airlines’ traffic rose 124.8% in January 2023 versus a year ago. January capacity was up 82.5% and load factor climbed 13.9 percentage points to 73.7%, the lowest among regions.

Domestic Passenger Markets

January 2023 (% year-on-year)  World share1  

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

Domestic             42.1%    32.7%    16.3%    9.5%      76.4%

Australia              1.0%      107.3%  50.0%    22.0%    79.7%

Brazil     1.5%      3.0%      5.5%      -2.0%     81.5%

China P.R.            6.4%      37.2%    19.0%    9.4%      70.6%

India      2.0%      92.0%    47.2%    19.9%    85.2%

Japan    1.2%      63.3%    3.0%      25.3%    68.6%

US          19.3%    26.8%    12.0%    9.0%      77.5%

1% of industry RPKs in 2022   2year-on-year change in load factor 3Load Factor Level

•             Australia’s domestic traffic rose 107.3% in January compared to a year ago and now stands at 88.8% of pre-pandemic levels.

 •            China’s domestic RPKs rose 37.2% in January, the first month over month annual increase since August 2022 and is now at 86.3% of January 2019 levels.

 January 2023 (% year-on-year vs 2019)  World share1     RPK        ASK        PLF (%-pt)2         PLF (level)3

Total Market      100.0%  -15.8%  -13.5%  -2.1%     77.7%

International      57.9%    -23.0%  -21.7%  -1.3%     78.6%

Domestic             42.1%    -2.6%     1.2%      -3.0%     76.4%

Botton Line

“With strong travel demand continuing through the traditionally slower winter season in the Northern Hemisphere, the stage is set for an even busier spring and summer. At a time when many are just beginning to enjoy their newly restored travel freedoms, it is especially disappointing to see the Dutch government making plans to limit their movements by unilaterally and unjustly reducing operations at Schiphol Airport,” said Walsh.

View the January Air Passenger Market Analysis (pdf)

For more information, please contact:

Corporate Communications

Tel: +41 22 770 2967

Email: corpcomms@iata.org

Notes for Editors:

•             IATA (International Air Transport Association) represents some 300 airlines comprising 83% of global air traffic.

•             You can follow us at twitter.com/iata for announcements, policy positions, and other useful industry information.

•             Statistics compiled by IATA Economics using direct airline reporting complemented by estimates, including the use of FlightRadar24 data provided under license.

•             All figures are provisional and represent total reporting at time of publication plus estimates for missing data. Historic figures are subject to revision.

•             Domestic RPKs accounted for about 42.1% of the total market; the 6 domestic markets in this report accounted for 31.3% of global RPKs in 2022.

•             Explanation of measurement terms:

o             RPK: Revenue Passenger Kilometers measures actual passenger traffic

o             ASK: Available Seat Kilometers measures available passenger capacity

o             PLF: Passenger Load Factor is % of ASKs used.

•             IATA statistics cover international and domestic scheduled air traffic for IATA member and non-member airlines.

•             Total passenger traffic market shares by region of carriers for 2022 in terms of RPK are: Asia-Pacific 22.1%, Europe 30.7%, North America 28.9%, Middle East 9.8%, Latin America 6.4%, and Africa 2.1%.

•             Fly Net Zero

Global Airline Community Challenges Legality of Mandatory Flight Reductions at Schiphol Airport

Geneva – The International Air Transport Association (IATA) and airlines are mounting a legal challenge to the Dutch government’s sudden decision to reduce Schiphol airport’s capacity.

Schiphol Airport is already restricted to 500,000 flights annually. The government’s decree would renege on that agreement, reducing Schiphol connectivity to 460,000 flights from November 2023.

IATA and the global airline community believe that this political decision by the Dutch government contravenes EU Regulation 598/2014 on noise-related operating restrictions at EU airports. It also disregards the Chicago Convention, a binding international agreement to which the Netherlands is a signatory. Annex 16 of the Convention contains provisions for The Balanced Approach to Aircraft Noise Management which states are obligated to follow when taking measures to managing the noise impacts of aviation.

Key requirements of EU Regulation 598/2014 and the Balanced Approach are:

•             Consultation with affected parties

•             The use of flight reductions only as a last resort

•             Balancing the needs and concerns of local residents, the environment and the local economy for aviation’s economic and social benefits.

The decision to cut capacity at Schiphol fails to meet these requirements because:

•             No meaningful consultation was undertaken with industry

•             Flight reductions are being imposed as a first resort, rather than as a last resort

•             The need to restore the economic damage to the aviation industry of the Netherlands is not being addressed. Pre-pandemic, aviation supported some 330,000 jobs and $30 billion of economic activity in the Netherlands.

“The Netherlands is handicapping its economy by destroying connectivity. And it is doing it in contravention of EU law and its international obligations. The job-destroying hostile approach to aviation that the Dutch government has chosen is a totally disproportionate response to managing noise. The government has even refused to engage in meaningful consultations and made flight reductions the goal, rather than working with industry to meet noise and emissions reduction goals while restoring employment and revitalizing the post-pandemic economy. The dangerous precedent that this illegal approach creates left no choice but to challenge them in court,” said Willie Walsh, IATA’s Director General.

The airline industry continually deploys quieter aircraft, reducing noise levels by 50% in the last decade. The investment in new fleet also plays a significant role in meeting the aviation industry’s commitment to reduce its CO2 emissions to net zero by 2050, as set out in a Resolution at the IATA AGM in 2021. The industry’s robust plan for reducing CO2 includes the uptake of Sustainable Aviation Fuels, of which airlines operating in and to the Netherlands have been among the leading users.

RI Bakal Larang Ekspor Komoditas Strategis Sampai 2040

CNN Indonesia

Rabu, 16:58 WIB

Pemerintah gencar melakukan hilirisasi produk SDA. Ada 21 komoditas yang bakal dilarang ekspor bahan mentahnya hingga 2040. (Arsip Staf Khusus Kementerian Investasi Tina Talisa)

Jakarta, CNN Indonesia — Pemerintah bakal terus melakukan hilirisasi produk sumber daya alam (SDA) dalam negeri hingga memberikan nilai tambah. Setidaknya, ada 21 komoditas yang bakal disiapkan dalam peta jalan investasi untuk hilirisasinya hingga 2040 mendatang.

Menteri Investasi dan Kepala BKPM Bahlil Lahadalia mengatakan pemerintah sudah melarang ekspor nikel sejak 2020. Lalu tahun ini akan dilanjutkan dengan bauksit dan tembaga. Ke depan, hilirisasi ini diperluas hingga mencakup 21 komoditas.

“Selain bauksit, tembaga, timah kita juga sudah bangun peta jalan hilirisasi bagi Indonesia sampai 2040. Itu ada 21 komoditas,” ujarnya dalam webinar Indef, Rabu (8/2).

Menurutnya, 21 komoditas tersebut terbagi dari delapan sektor prioritas antara lain mineral, batu bara, minyak, gas bumi, perkebunan, kelautan, perikanan, dan kehutanan.

“Ini jumlah investasinya perlu sekitar US$545,3 miliar atau Rp8.179,5 triliun (asumsi kurs Rp15 ribu per dolar AS),” imbuhanya.

Menurutnya, ini adalah langkah dan strategi yang dilakukan pemerintah untuk menambah pundi-pundi ke perekonomian. Hal ini terbukti dari larangan ekspor nikel mentah pada 2020 lalu yang memberikan nilai tambah sangat besar.

Pada 2017 sebelum larangan, ekspor produk besi dan baja Indonesia hanya US$3,3 miliar. Lalu, setelah larangan, maka pada 2022 realisasi ekspor produk besi dan baja tercatat sebesar US$27,8 miliar.

“Jadi ini adalah jalan, strategi, yang harus Indonesia lakukan dalam rangka meningkatkan pendapatan per kapita, dorong jadi negara baik dan optimalisasikan sumber daya alam yang ada. Ini ada strategi negara,” pungkasnya.

1. Batu bara

2. Nikel

3. Timah

4. Tembaga

5. Bauksit

6. Besi baja

7. Emas perak

8. Aspal buton

9. Minyak bumi

10. Gas bumi

11. Sawit

12. Kelapa

13. Karet

14. Biofuel

15. Kayu log

16. Getah pinus

17. Udang

18. Perikanan

19. Rajungan

20. Rumput laut

21. Garam

CargoAi builds a cargo payment solution

With the launch of CargoWALLET, CargoAi is the first to bridge a gap in the digital cargo marketplace. While making a real-time cargo reservation online has become much easier in recent years, paying for the space has always been a separate affair: bureaucratic, slow, and with various obstacles. CargoWALLET does away with this and “enables shipments to be booked and paid for without an IATA CASS Number, without an AWB stock, AND without any bank guarantee,” CargoAi underlines. CargoForwarder Global (CFG) spoke to Matt Petot (MP), CEO, CargoAi, about its pioneering fintech solution specifically tailored towards supporting small to medium-sized freight forwarders, as well as IATA CASS forwarders that perhaps do not have their own AWB stock, for example.

CFG: CargoWALLET began as a project two years ago. How was the idea developed – was it tried and tested with small and medium forwarders? How do their payment processes work currently, preCargoWALLET?

MP: This has always been on our product roadmap as our goal has been to address the pain points identified by freight forwarders, airlines and our TMS partners in air cargo procurement. We were aware that despite CargoMART serving as a digital conduit for procurement (and accelerating the search, quote, booking process), it would not overcome the barrier that exists where small freight forwarders are not able to book airlines directly because of the complexity of requiring an IATA CASS account or AWB stock.

Also, Air Cargo should be able to use supply chain financing options that already exist in other industries and be able to get long payment terms which is not the case with payment by CASS or directly with the airlines.

Currently for a booking to be made online or offline, the forwarder needs to have an account with the airline which also sometimes means having a bank guarantee on top of being a CASS member.

We started with our key partners, both on the airline and freight forwarder side, to develop the blueprint which has resulted in our successful launch today.

CFG: Which finance provider is in the back end? (PayPal/Stripe/or similar?)

MP: We are not using a sole finance provider. It took us 2 years to build the right banking connections with multiple providers to enable an end-to-end finance payment solution with the objective of ensuring that our solution remained at the same cost as bank transfers in more than 30 currencies. Using paypal or stripe would add around 3% to 5% on top of the air freight cost to our customers, which was not an option.

We also partner with financial providers to offer modern supply chain financing solutions that exist in other industries to facilitate the 30 or 60-day payment terms for our freight forwarders.

CFG: How happy are the airlines with the new payment process? Are there airlines who still prefer not to have bookings from non-IATA members?

MP: All the airlines are very receptive to the idea as it opens new doors for them, allowing them to also tap into different freight forwarders who don’t have an IATA CASS account. Airlines want to work with as many forwarders as possible, but they sometime don’t have the resources to work with the long tail of freight forwarders. With our guaranteed solution for the airlines, they only deal with us and can work with all forwarders digitally.

CFG: Do your competitors cargo.one / WebCargo by Freightos have a comparable payment facility?

MP: Presently, WebCargo by Freightos and cargo.one compete with us on our digital marketplace (CargoMART), and they do not have this kind of extensive payment solution integrated. Solution providers for financial services in air cargo are IATA through its CASS system, or Paycargo, which are ‘standalone’ solutions, not integrated with digital marketplaces, and focused on other business cases.

What we offer through CargoWALLET is unprecedented:

Up to 60 days payment terms to pay for Air Cargo

Ability for a forwarder to do export from another country by buying the air cargo directly with airline rates

Ability for smaller forwarders to work with all airlines instead of being restricted to the ones they have an account/bank guarantee or AWB stock

And all this at the same cost as a bank transfer.

CFG: How are the AWB numbers allocated in the system? (Post-payment?)

MP: CargoAi works directly with the airlines to allocate AWB stock from the start, to CargoWALLET or to the forwarder via CargoWALLET. This is possible even if the forwarder uses the PayLater option, as we have partnered with a credit company to provide supply chain financing.

CFG: How is the CargoWALLET linked to the forwarder’s account? Or is a certain amount paid into the Wallet that forwarder employees can book against?

MP: To answer the second question, yes. Here is a brief overview of that process.

Once there is a CargoMART account, the manager for that Office (i.e. a branch) will have the option to apply for activation, via a form completion. CargoAi will review the application which includes a KYC process. Review will take 2-5 working days.

Once activated, the user account that applied for CargoWALLET will receive an email notification. The email will explain that they need to top up the funds in their wallet to start their first booking with CargoWALLET.

The office level user will need to go to the CargoWALLET management page, click on Top Up and fill in the currency, payment method and amount. After confirmation on the details, an invoice will be automatically sent to their registered office finance email address with bank details for them to proceed with the payment.

Users can exchange money in their wallet to different currencies from the one that they transferred in, so that they can purchase shipments based on the eBooking/billing currency.

CFG: What were the challenges during development? And – aside from funding – how did CargoTech help?

MP: The challenge was that we needed to create a worldwide payment system to cover the 100 countries that our airlines and freight forwarders are in, without adding the huge cost that stripe or paypal are usually adding. It was necessary for us to establish our own payment infrastructure and network in order to present a competitive alternative to the market, while maintaining the same cost as a bank transfer.

Working with the CargoTech group of industry experts was extremely beneficial in terms of innovation and product development as a sounding board to develop our own payment infrastructure and deliver the best possible solution to the industry.

The combined power of industry expertise is also useful – having multiple eyes and ears to the ground on the changing market landscape.

CFG: Is CargoWALLET available for bookings on ALL CargoAi airlines?

MP: Yes, freight forwarders can utilise CargoWALLET for bookings on all airlines whether via CargoMART or CargoCONNECT (an API solution that integrates with our TMS partners).

CFG: Is CargoWALLET available for all forwarders globally? Or is a step-wise rollout planned?

MP: We had successful tests in a lot of pilot countries, and we are making CargoWALLET available in a step wise rollout as we need time to review all our forwarders registrations.

CFG: Do you expect that this new feature will attract new airlines/forwarders?

MP: Absolutely, we expect to see an increase in forwarder registrations on CargoMART as they will now be able to access the whole procurement process within one interface – this will gain them significant time savings and allow them to service their customers much quicker. Our airline partners are very receptive as we bring them a customer base of different freight forwarders who did not necessarily work with them thus increasing their overall distribution and business potential.

Our freight forwarder users are also excited by the longer payment terms and the capability to book air cargo directly with airlines from other countries.

Thank you, Matt Petot!

Brigitte Gledhill