Showing posts with label Canadian Aviation Industry. Show all posts
Showing posts with label Canadian Aviation Industry. Show all posts

Sunday, October 9, 2011

Qatar Airways to expand its cargo destinations in North America

Qatar Airways is boosting cargo services to North America, days after its Gulf rival Emirates outlined plans for new U.S. passenger routes. Qatar Airways said Sunday it will begin flying Boeing 777 freighters twice weekly to Atlanta and Houston and once a week to Toronto early next month. The flights will originate in the Qatari capital, Doha, and stop in Luxembourg, where freight carrier Cargolux is based. Qatar Airways bought a 35 per cent stake in Cargolux in June. Qatar Airways already runs a cargo route to Chicago and has passenger services to Montreal, Houston, New York and Washington.

Late last month, Dubai-based Emirates said it was expanding its U.S. service by adding nonstop flights to Dallas and Seattle next year.

Friday, June 3, 2011

Airlines are slowly gaining from the global economic recovery - IATA



The International Air Transport Association (IATA) said on Thursday the global economy was recovering more slowly than expected, but was inching upward based on air traffic data, a key barometer of growth. High oil prices, the crisis in the Middle East and Japan's earthquake and tsunami dented growth, but the global economy appeared to be slowly overcoming the effects, said Giovanni Bisignani, director general of the global air industry body.

"From the numbers, the recovery is moving," he told a news conference in Singapore. "It is moving slower than expected because the recovery this year has been affected by many, many different situations (such as) the situation in the Middle East and the situation with the oil price. "What got spoilt in the situation is the price of fuel, because the record (average) price of USD$110 per barrel is not just affecting the profitability of aviation, but it’s affecting the profitability of the entire system."

According to the latest IATA figures, passenger traffic in April grew 11.9 percent year-on-year while freight traffic grew 3.3 percent. But these numbers were distorted because April 2010 was hit by severe air traffic disruptions following the volcanic ash eruption in Iceland. Air freight, which accounts for about one-third of global trade by value, was down 6 percent from a post-recession peak in May last year.

"The speed-up of last year was because you have to build the inventories," Bisignani said. "Once you have rebuilt your inventories, you have to sell your stuff. Now we have slowed down because of that reason." The airline industry itself will remain profitable, but IATA plans to revise its estimates from the latest forecast of USD$8.6 billion and will likely lower that estimate.

"Since (the last forecast), much has happened to make us less optimistic," Bisignani said. "Eliminating all distortions (passenger traffic) is growing at 3-4 percent. Unfortunately, two things are spoiling the party, demand shocks and high jet fuel prices." IATA has 230 member airlines and will hold its annual general meeting in Singapore next week and will announce its latest forecasts at that time.

When the group made the industry-wide profit forecast of USD$8.6 billion in March, it assumed an average oil price of USD$96 per barrel for Brent crude, but the year-to-date average of the oil price now has reached USD$110 per barrel. Load factors, or the amount freight or passenger capacity used, are key to airline profitability. In April, the overall passenger load factor was 77.4 percent, but the freight load factor was only 46.5 percent.

"Maintaining the high load factors needed to support profitable growth will be difficult given the ongoing challenge of matching capacity to volatile demand," Bisignani said. Disrupted supply chains after the Japan earthquake and tsunami disaster, slower growth in China and political unrest in Africa contributed to the slow take-up of freight space, IATA said.

Bisignani said airlines had built up freight capacity last year believing a strong recovery was imminent. "That was slowed down because of the cost of fuel, the Middle East, and all those kind of things. And it takes some time to adjust capacity to the new reality," he said.

Sunday, January 9, 2011

Should Canada be even more rigid with UAE?


The United Arab Emirates has gone into a princely snit over our refusal to grant it more landing rights in Canada for its airline, and has decided it can bully us into changing our minds. I suggest that we push back, firmly, because the UAE has not realized that Canada has options, too.
Why does the UAE so desperately want more landing rights? Because it has bought a lot of big fat aircraft as part of its decade-long, oil-fuelled spending spree, and needs to fill seats by moving North Americans through Dubai to the Middle East and Asia.
When the Canadian government refused, the UAE proceeded to: a) kick Canada out of our staging base for Afghanistan that was located on UAE soil; b) refuse our minister of national defence and our chief of the defence staff permission to fly through its airspace after they were in the air; and c) introduced the need for expensive visas for any Canadian wishing to visit their country.
Here's what I think we should consider in response: a) void the landing rights UAE airlines already have; b) forbid them to fly in Canadian air space; c) slow down the processing of visas for anyone from the UAE who wants to visit Canada; and d) tell them to convince us that nobody connected to any of the Emirates' royal families is supporting antiwestern terrorist activities.
Why would I want to drop the gloves in dealing with the UAE? Because I think they're essentially a bunch of pompous thugs behaving like Canadians need them. We don't, and somebody should show them they can't treat us like the second-class citizens they hire to do virtually all the work in their seven fiefdoms.
I am well aware that some critics argue that the Canadian government has been heavy handed in dealing with the UAE, as though we weren't properly versed in the delicate ways one must handle trumped up royals.
I say we should deal with them the same way we did when they got haughty about the Canadian Forces flight-training program for the UAE Air Force. That program was going fine until some member of a royal family flunked his flight test, and still wanted to be given qualifications to fly an aircraft. Our military wisely cancelled the training program when the UAE told us that members and friends of a royal family should not be allowed to fail.
Wait, you say. Weren't the seven families who so ruthlessly rule the UAE being jolly good chaps when they offered us a military base on their soil? Well it wasn't quite soil -- it was unoccupied sand. And let's keep in mind that our troops were using that stretch of sand to try to defuse terrorism in the region, with only the tiniest military contribution of about 200 "special forces" from the UAE.
Rich oil countries like the UAE should be doing a lot more to combat terrorism than they are. It isn't just democracies like Canada and the United States that need to fear al-Qaeda and the like. These outfits are also sworn enemies of the ruling classes in places like Saudi Arabia, and yes, the United Arab Emirates. The fact that the UAE was so quick to expel Canada from Camp Mirage for as small a matter as a disagreement over landing rights in Canada suggests a haughty and short-sighted indifference to whether the world succeeds in abating terrorism.
Maybe they're not indifferent. Maybe they like to play both sides of the street when it comes to terrorism. I have spoken to several intelligence sources who are adamant that leadership within the United Arab Emirates -- while posing as friends to NATO -- have been pouring money into terrorist movements throughout the Middle East. So we should reward that kind of duplicity with additional landing rights?
Canada is a civilized country trying to do two things on the international front: promote its own interests, and create a fairer, more civilized world. There is nothing fair or civilized about the UAE, nor are things improving. Foreign workers, mostly from Asia, outnumber privileged citizens by a ratio of about four to one, and are notoriously badly treated. This really is a country run by royal thugs, without democracy, free press, free assembly, or any semblance of human rights.
Even if we were just thinking selfishly about promoting the financial interests of Canadians, what does the UAE have to offer? We don't need their oil, and the economy of their show state of Dubai is a bubble just waiting to burst for the second time.
The UAE argues that denying its airlines more landing rights in Canada amounts to unfair protectionism of our own airlines, most notably, Air Canada. But why not protect against unfair competition? The UAE has two state-subsidized airlines that have bought themselves a bevy of huge aircraft that are eating a hole in the national treasury. They staff the airlines with underpriced help that can be fired at whim, and offer discounts on their visas if you fly on those airlines. Why kill off some Canadian jobs to the benefit of the high-spending UAE treasury.
Finally, it should be noted that five years ago the U.S. Congress decided that it wouldn't allow the UAE to manage American ports through a state-owned company called Dubai Ports World. Well, you know what? Dubai Ports World owns the company that runs container and break bulk terminals at the Port of Vancouver.
Note to the princes: "You want to keep that Vancouver contract and your current landing rights? Well then write us a letter within 30 days pledging that nobody connected to the royal families running your totalitarian governments is funding antiwestern terrorists, and we'll check that out with our intelligence people. And meanwhile, start showing us some respect."

Colin Kenny is former chair of the Senate Committee on National Security and Defence.

Saturday, March 27, 2010

Air Canada CEO flying high

Air Canada's CEO C Rovinescu has hinted that the Nations' largest airliner is showing signs of recovery.
He claims that the cargo traffic has increased, which is a clear sign that is marking the end of recession.
How ever the airliner is still flying empty on the business class which is the main revenue generator for the airliner.
C Rovinescu is positive enough that the airliner will fly with business class passenger very shortly.