Qantas has joined the growing list of international carriers that have pleaded guilty to collusion and price fixing for conspiring to fix charges for cargo shipments, with the airline agreeing to pay a fine of US$61 million.

Chief Executive Officer of Qantas, Mr Geoff Dixon, said the illegal conduct involved fuel surcharges on the lucrative US-Australia trade between 2000 and 2006. Qantas is estimated to have booked more than US $600 million in freight during the period under investigation.

"Similar investigations to those being carried out by the United States Department of Justice (DOJ) are being undertaken by antitrust regulators in other countries, including Australia. "We understand more than 30 other airlines are included in these investigations," he added.

Qantas was first notified of the allegations in May 2006 and Qantas had cooperated fully with investigations by the DOJ and other antitrust regulators, according to Dixon.

"These investigations confirmed that the practices adopted by Qantas Freight and the cargo industry generally to fix and impose fuel surcharges breached relevant antitrust laws," he said.

Qantas was charged with "participating in meetings, conversations and communications... to discuss the cargo rates to be charged on certain trans-Pacific routes." The carrier and its co-conspirators then levied rates in accordance with those discussions, and held further meetings to "monitor and enforce" the agreed-on rates.

British Airways and Korean have already pleaded guilty in the US to similar charges relating to passenger and cargo prices and were fined US$550 million and US$300 million respectively. Investigations by competition authorities in the US and other countries are continuing.

Qantas announced recently that it would acquire up to 188 narrowbody aircraft to support the further growth of its two brands, Qantas and Jetstar, in Australia and Asia. Budget carrier Jetstar is set to open new regional aviation bases in both Darwin and Perth over the next two years to serve fast growing Asian markets.

Qantas Chief Executive Mr Geoff Dixon said the aircraft would be principally B737-800s, which were Qantas' main narrowbody aircraft, and A320s, which were the core aircraft in Jetstar's short haul fleet.

The first aircraft scheduled for delivery in February 2008 will be an A321 with at least 17 of these aircraft over a six year period.

In total Qantas will take delivery of 68 A320/A321 aircraft, plus 40 options and purchase rights; and 31 B737-800 aircraft and 49 options and purchase rights.

The order comes as Qantas is preparing to receive its first A380 in August 2008, while Jetstar will subsequently receive its first B787 Dreamliner as a key driver of the expansion of its low cost international services.

Boeing and Cathay Pacific Airways have finalised an agreement for the purchase of 10 Boeing 747-8 Freighters and seven 777-300ERs by the airline.

This is the first order for the newest 747 Freighter version by Cathay Pacific, which currently operates 19 747 family freighters. Cathay Pacific is the sixth largest cargo carrier by revenue-tonne-kilometers in the world, and the third largest in Asia, according to 2006 data.

Cathay Pacific is placing its fourth order for the 777-300ER, bringing its total commitment to 30 777-300ERs, including announced agreements for third-party leases. The carrier received its first 777-300ER in September and is placing the aircraft on routes serving North America and Europe.

Meanwhile, Cathay also signed a contract with Airbus to further expand its A330 widebody fleet with the addition of eight A330-300 aircraft. The new aircraft, powered by Rolls Royce Trent 700 engines, are scheduled for delivery before the end of 2012.

The Hong Kong-based carrier, together with sister airline Dragonair, is currently the largest operator of A330 aircraft in the world with a fleet of 45 A330-300s. Together with three leased A330-300s scheduled for delivery in 2008, this latest order will bring the airlines' combined A330-300 fleet to a total of 56 by 2012.

Meanwhile, Tyler said the Airbus A380 will not join Cathay Pacific's fleet due to its limited range and limited cargo capacity. The carrier would only reconsider the aircraft for its trans-Pacific routes if Airbus offered a longer range version of the aircraft. Tyler said Cathay is still choosing between Airbus' A350 and Boeing's 787.

Taking advantage of a new landmark Air Services Agreement between Singapore and Belgium, Singapore Airlines Cargo has commenced B747-400 weekly freighter services from 1 November, between Brussels and Chicago, and twice weekly circular routings from Brussels to Chicago to Los Angeles and back to Brussels.

The first time a Singapore carrier is utilising Seventh Freedom Traffic Rights, the agreement allows SIA Cargo to operate flights between third countries without originating from, or returning to, Singapore.

"These new Seventh Freedom traffic rights will enable Singapore Airlines Cargo to more effectively serve the Europe-USA freight market," said Goh Choon Phong, president SIA Cargo. "Specifically, we can now operate more frequencies between these markets without having to increase frequenciesbetween Singapore and Europe."

"The adoption of these new liberal agreements is good for the air freight industry, because it allows carriers to match supply of capacity to markets where the demand for exports exists. Airlines can thus be more responsive to the market needs. Moreover, this enables airlines to utilize aircraft resources more efficiently," he added. SIA Cargo now flies to 74 cities in 39 countries.

Singapore-based BOC Aviation has fi nalised an agreement with US low cost carrier Skybus Airlines covering the purchase and leaseback of 13 new A319 aircraft, including pre-delivery fi nancing. Th e aircraft are due for delivery in 2009 and 2010.

BOC Aviation is an Asia-based aircraft leasing company, with a fl eet of over 70 aircraft in service with airlines worldwide and another 60 aircraft on fi rm order with Airbus and Boeing for delivery through to 2012. Of the 60 aircraft on order, 45 have already been leased to airlines in advance of delivery, with the next available new aircraft delivering in 2011.

BOC Aviation is owned 100 per cent by Bank of China, currently the third largest bank in the world by market capitalisation.

Singapore Technologies Aerospace Ltd (ST Aerospace) announced recently that its joint venture subsidiary, ST Aviation Services Company (SASCO), has completed the door cutting for the first 767- 300 Boeing Converted Freighter (BCF).

The aircraft was inducted on 18 October from All Nippon Airways (ANA), Boeing's launch customer for the 767-300 programme. The prototype is expected for redelivery in June 2008, after completion of flight tests and certification by Boeing, according to ST Aerospace.

A signifi cant milestone in the passenger- to-freighter (PTF) programme, door cutting signifies the start of the major activity in a PTF, said Dennis Floyd, Boeing vice president Freighter Conversions. It indicates the readiness of the aircraft for the replacement of the floor structures, installation of the new door surround structures and the eventual installation of the main deck cargo door.

A 767-300 passenger aircraft undergoes major modifications on its main deck, with the converted 767-300 BCF expected to have about the same cargo capability as the same model production freighter with approximately 50 tonnes structural payload at a range of approximately 3,000 nautical miles (5,930km) and 412,000lbs (187,270kg) maximum take off weight.

China Southern's entry into the SkyTeam alliance brings it closer to its planned cargo joint venture with Air France-KLM.

Air France Cargo chief executive Marc Boudier said the airlines have decided to move to the 'second phase' of the project they have been discussing since June, according to a Thomson Financial report. The two airlines plan to launch a new Chinese cargo company in 2008, in which Air France-KLM will hold a 49 per cent stake and which is expected to take over the cargo activities of China Southern.

Boudier said the company would aim for sales of nearly Euro 1 billion in the medium term, as Air France-KLM currently generates sales of around Euro 3 billion from its cargo business.

The new company will begin operating with existing China Southern B747-400s as well as passenger aircraft belly hold capacity. Six Boeing 777 cargo aircraft ordered last year by China Southern will also be used by the new company.

"China is now at the heart of cargo activity,' Boudier said according to the report. "The Chinese market already represents more sales than France and the Netherlands combined and we would not have seen cargo growth in the last years without China."

China and Airbus reached an agreement on a US$15 billion aircraft order along with a cooperation agreement for the A350XWB production.

The firm orders include 110 A320 family aircraft and 40 A330s, while an MOU between the airframe manufacturer and the Chinese government stipulates that Chinese industry will take a 5 per cent stake in A350 XWB production.

The MOU specifies that Airbus will manufacture 5 per cent of the A350 XWB airframe in China. This will occur through a joint venture manufacturing plant to be established in Harbin by 2009 with AVIC II subsidiary Harfei Aviation Industry Co. to produce composite material parts and components for the A350.

Airbus also has a 51 per cent stake in a JV A320 final assembly line in Tianjin, with first delivery expected in the second half of 2009. Separately China Southern Airlines also signed a contract for 10 A330-200s.

Air China said it plans to order 40 Airbus aircraft in the next five years to support its European expansion. The carrier launched twice-weekly Beijing- Dubai-Athens service with a B767 recently and will start serving Berlin, Istanbul and Warsaw from Beijing in March.

It will begin flying daily from Beijing to Manchester, Zurich, Dusseldorf, Vienna and Milan and from Shanghai to Rome in 2009.

Tianjin-based Okay Airways Company Ltd, mainland-China's fi rst private airline took delivery of its seventh Boeing Next-Generation 737-800 recently. Th e aircraft is under lease from AWAS (Ansett Worldwide Aviation Services).

Th is 737-800 is the fi rst new-airplane delivery for Okay Airways and the fi rst new-airplane delivery in four years for AWAS, an aircraft leasing company based in Dublin, Ireland.

China Eastern Airlines expects to improve its financial and operational performance greatly on international routes through its planned cooperation with Singapore Airlines, according to CEA Board Secretary Luo Zhiping.

"Currently we [lose] between CNY1 million ($134.000)-CNY2 million in one flight from Shanghai to New York," Luo said according to ATW Online. "And our average load factor of business class/first class is 30-40 per cent in international routes while this figure is more than 90 per cent [for] SIA, so we hope to raise our figure to 70-80 per cent in partnership with SIA."

SIA and parent Temasek recently signed a definitive agreement to buy 15.7 and 8.3 per cent stakes respectively in CEA, with the Singapore carrier pledging signifi cant cooperation with the Shanghai-based carrier.

The airlines are considering operating a joint Singapore-Shanghai-New York route that would include cooperation on sales, cabin layouts and service. Luo added that approval by CEA shareholders of the SIA stake purchase is expected in January.

AirAsia, the region's largest low-cost carrier, has placed a firm order for an additional 25 A320s. The latest contract brings AirAsia Group's (Malaysia AirAsia, Thai AirAsia and Indonesia AirAsia) total orders to 175 A320 aircraft and makes it the world's largest airline customer for this particular aircraft. The A320 family off ers a containerised cargo system, which is compatible with the worldwide standard wide-body system.

AirAsia's Kuala Lumpur hub is fully operated with A320s and the aircraft is expected to completely replace Thai AirAsia's and Indonesia AirAsia's old generation Boeing 737 fleets by 2008.

Indonesia's Lion Air looks set for a major regional expansion with firm orders for 122 B737-900ERs destined for the carrier's expansion in Thailand, Vietnam, Bangladesh, Malaysia and the Philippines.

Lion said it will invest in or launch JV airlines in the six countries within five years. The carrier estimates that it will invest around US$50-100 million in each venture, which will be funded from internal and external sources.

Lion Air, which currently has a fleet of 40 aircraft, will join competitors Tiger Airways, Jetstar and AirAsia in Asia's rapidly growing travel market.

Lion Air began taking delivery of its new B737-900ERs in the first half of this year.

Garuda Indonesia has announced the appointment of GSA Cargo Services as cargo general sales and services agent in Australia and New Zealand with effect 1 December 2007.

Managed by professionals with more than 30 years experience in the air cargo industry, GSA Cargo Services will be responsible for all of the carrier's cargo sales and marketing activities, as well asreservations functions.

"Indonesia was the 10th largest destination for Australian air freight last year, when Australia's airfreight exports totalled almost 5,300 tonnes and had a total value in excess of $130 million," said Donna Mayne, Director of GSA Cargo Services. Garuda Indonesia operates 27 flights per week from Sydney, Melbourne, Perth and Darwin.

The Vietnamese government has licensed the country's first privately owned airline, Vietjet.

The new carrier says initially it will operate domestic routes between Hanoi, Ho Chi Minh City and Danang next year and is aiming to eventually offer flights to Hong Kong, Singapore and Bangkok. It joins the country's three state-owned airlines: Vietnam Airlines, Pacific Airlines and Vasco.

Air India and Gati, a global logistics company, have jointly launched a dedicated cargo service, making it the first public private partnership (PPP) in the air cargo sector.

Air India recently handed over a Boeing 737 aircraft to Gati for operating daily cargo flights on the Delhi- Mumbai-Bangalore-Delhi route. The airline is scheduled to hand over four more aircraft by mid-2008.

The joint venture is aimed at heading off competition in the domestic air cargo sector from Blue Dart Express, owned by DHL, a unit of German postal services giant Deutsche Post. The aim is to capture an 11 per cent market share within one year.

India's domestic air cargo industry, which is dominated by Blue Dart Express, has been growing at a compounded growth rate of over 11 per cent over the past five years.

According to estimates, a booming economy may see domestic air cargo grow to 500,000 metric tonnes by March 2008, at a 20 per cent growth rate every year, over the next five years.

India's Kingfisher Airline takes delivery of Airbus A321-200 from aircraft lessor AWAS. The carrier has taken delivery of the new aircraft on a nine year lease. AWAS will also deliver another new-build A321-200 to Kingfisher before the end of the month.

Once the second delivery is complete, Kingfisher will have a total of five AWAS aircraft on lease. The carrier is also said to be planning to launch a service from India to Sydney from October 2008, pending regulatory approval.

Kingfisher has also requested that Airbus advance delivery of its five A380s scheduled for 2011-12 to the end of 2009. Kingfisher is the only Indian customer for the A380, and plans to operate the aircraft to the US and on other long haul routes.

Air India announced it has shortlisted Munich and Vienna as potential sites for its European hub. The airline said it is basing its decision on connectivity, incentives and costs, with the carrier planning to initially operate there from Kolkata. A final decision within the next few months.

Air India will become the second Indian carrier to have a hub in Europe following Jet Airways, who has a hub in Brussels, Belgium.

A bullish year for the Indian air cargo industry is set to kick off 2008 with a bang as industry leaders converge on Mumbai for Air Cargo India 2008, from 23-25 January 2008.

"The event has gained an overwhelming response and is almost sold out. It will be a great opportunity to meet many decision makers of the Air Cargo industry from all over the world, assembled under the same roof. And to join the list of our esteemed participants, we have National Air Cargo joining the ACI 2008 event as a 'Gold Sponsor' along with Kingfisher Airlines Cargo and Boeing" said Priyo Patra, director events at STAT Times.

National Air Cargo is a global provider of heavy freight movement and charter operation services and also specialises in supply chain solutions. Headquartered in Buffalo, NY, National Air Cargo Group has their global presence throughout Asia, Middle East and Europe.

The company started its operations in India from 18 December, covering both Mumbai and Delhi. National will fly 5 weekly flights in and out of these destinations offering a capacity of more than 272 tonnes a week between the two countries.

Emirates Airline announced another historic civil aviation aircraft order at the recent Dubai Airshow, when it signed contracts for 120 Airbus A350s, 11 A380s, and 12 Boeing 777-300ERs, worth an estimated US$34.9 billion in list prices.

Emirates said it intends to sell as much as 30 per cent of the company in an initial public offering to help finance the massive aircraft order.

The agreement with Airbus comprises firm orders for 50 A350-900s and 20 A350- 1000s, plus 50 options for the A350-900s. The first A350 will be delivered to Emirates in 2014.

Emirates also firmed up orders on the eight A380s for which it had signed letters of intent earlier this year, and placed firm orders for an additional three of the double-decker aircraft, bringing its total firm order for the A380s to 58.

The contract with Boeing is for 12 firm orders of the 777-300ERs, valued at US$3.2 billion. With this new order, Emirates now has 57 Boeing 777s pending delivery and is set to become the world's largest 777 operator in the next few years.

Emirates' total order book now stands at 246 aircraft, all wide body, and worth over US$60 billion. "This is a massive investment which reflects our confidence in the future of air transport, and our confidence in Dubai," said Sheikh Ahmed Bin Saeed Al-Maktoum, Emirates chairman and chief executive.

The new aircraft we have ordered today are all of the latest technology – they are greener and more efficient to operate. At the same time, they will allow Emirates to continue setting the gold standard in service. We intend to invest millions of dollars more to develop cutting-edge inflight products to match our cutting-edge aircraft fleet."

Dubai Aerospace Enterprise, rapidly established itself as a significant player in the leasing business by signing letters of intent for 200 Airbus and Boeing aircraft worth just over US$27 billion.

The Boeing order is for 70 737NGs, five 747-8 freighters, 10 777-300ERs and 15 787s, while Airbus received a commitment for 70 A320s and 30 A350 XWBs.

Boeing's order was valued at $13.7 billion at list prices, with the Airbus aircraft worth around $13.5 billion.

Deliveries of the Boeing aircraft will start in 2010 and continue through 2018, with Airbus deliveries beginning in 2013 and ending in 2022. Airbus President and CEO Tom Enders said he expects DAE to close on its deal before year end.

Qatar Airways has announced plans to create a leasing arm through which it will cycle aircraft that have reached or exceeded five years in service.

The new company, called Oryx Leasing, has already been established but will not begin trading until around 2013, said Qatar CEO Akbar Al Baker. This is intended to coincide with the first deliveries of the Airbus A350s.

The first aircraft to be disposed of will be the A340-600s of which the airline has four. Al Baker also forecast that the carrier would return to profitability by about 2010/2011.

Qatar currently has 182 aircraft on order or option, including up to 80 A350s, 60 Boeing 787s, 31 777s, three A330-200s, three A321s and five A380-800s. With the introduction of the 777-300ER, the first of which was delivered recently, the current fleet stands at 59 aircraft.

Qatar also recently celebrated the arrival of the first Boeing airplane to join the airline's fleet with the arrival of its new flagship 777-300ER. Qatar has ordered a total of 27 777s with options for five additional planes. Qatar also has ordered 30 787 Dreamliners and holds 30 options.

Qatar Airways has launched scheduled flights to Stockholm - its first Scandinavian destination - becoming the only airline from the Middle East to serve the Baltic region.

"Stockholm in particular, was chosen because of the huge amount of business and tourism interest in this wonderful scenic city and its surroundings. Our new flights will contribute to bridging links between two very different parts of the world.

Abu Dhabi-based Maximus Air Cargo said it would lease two additional freighter aircraft to fuel demand for the oversized cargo market.

Fat'hi Hilal Buhazza, president and chief executive, said demand has grown at 25 per cent in 2007, putting its fleet of American, European and Russian freighters at full capacity. Maximus flies Antonov and Ilyushin freighters, which are the only civilian aircraft equipped for ramp loading capabilities, ideal for oversized cargo such as helicopters and military equipment.

Maximus freighters are also able to land on less than ideal airport conditions including unpaved runways. It will add an Airbus A330 and an A300 in the first quarter next year on a lease basis to add to its current fleet of eight.

The cargo operator has flown out of Abu Dhabi since 2004 and flies cargo throughout the region including remote outposts in Africa, Pakistan and Iraq.

Qatar Airways and United Airlines have implemented a code share agreement following approval from the US Department of Transportation to place their codes on each others fl ights. Under the agreement, Qatar Airways signifi cantly expands its presence in the US, a market it entered in June with scheduled fl ights from Doha to New York (Newark).

In July, Qatar Airways added daily non-stop scheduled services between Doha and Washington DC. Both carriers have also enjoyed a strategic cargo partnership through which the airlines have carried more than 600,000 kilograms of general freight and in excess of two million kilograms of mail since its inception in early 2006.

Cargo 2000's airline membership has reached 24 carriers with Egypt Air Cargo's decision to join its programme to improve the quality of air cargo, streamline air cargo processes, achieve cost efficiencies and improve customer satisfaction.

Egypt Air's cargo fleet consists of two medium range widebody A300B4 freighters and two A300-600Fs. The airline also carries freight in the bellies of its passenger aircraft. In addition to its main cargo hub at Egypt's Cairo International Airport, the airline has developed several airport regional hubs at Ostend in Belgium, London Stansted in the UK, Chateauroux in France and Sharjah in the UAE.

Germany's Frankfurt-Hahn was recently chosen as its central European hub with the first flight in December. The Egyptian cargo airline is now planning to increase its weekly schedule through that airport from a current seven flights a week to 15. The carrier operates 45-tonne capacity A300 freighter which is assessed as a low-noise level aircraft.

Flughafen Frankfurt-Hahn GmbH said the planning stage for the construction of a state-of-the-art perishables centre at Frankfurt-Hahn together with a private investor was well under way. "Egypt Air is the most important airline at Frankfurt- Hahn in terms of perishable goods,"commented airport managing director Jörg Schumacher. "With the new perishables centre, we will further improve the standard of quality at the airport."

Egypt Air also recently signed a longterm contract with GECAS for the lease of six 777-300ERs. The first aircraft is scheduled for delivery in February 2010 and will be used on nonstop routes from Cairo to New York JFK and Tokyo Narita. Egypt Air announced recently that it will establish a hub in Vienna for traffic between Egypt and Northern Europe starting with the 2008 summer schedule.

RAK Airways, the Ras Al Khaimah-based startup, operated its inaugural three-times-a-week service to Beirut recently and also launched services to Colombo, Sofia and Dhaka with B757s. The carrier said it will unveil routes to India, Nepal, Qatar and Tanzania in thenext three months.

COO Khalid Almeer said RAK will acquire 6-8 narrow-body aircraft within two years and serve 20 destinations in the Gulf, South Asia, the Middle East and East Africa. "We estimate approximately 1 million passengers a year and the annual projected growth over the next 2-3 years is 20 per cent," Almeer said.

The Cairo-based startup Nile Air placed firm orders for nine Airbus 321s, the European plane-maker announced during the Dubai Airshow. The aircraft will cost US$792 million at list prices.

The airline, owned by Saudi travel service group Al Tayyar, will start operations in the first quarter of 2008 and will initially fly between Saudi Arabia and Egypt, with future expansion to other Middle East destinations. The carrier will start operations with leased A321s, ahead of receiving the first of nine similar aircraft ordered directly from the manufacturer in 2012.

Air Arabia, the first and largest lowcost carrier (LCC) in the Middle East and North Africa, announced the acquisition of 34 Airbus A320 aircraft and 15 options at the Dubai Air Show. The deal, valued at $3.5 billion at list prices, will more than triple the size of the Sharjah-based airline's fleet. The airline also announced that it will establish its second hub in the Moroccan capital, Rabat, providing the low cost carrier with a platform from which to expand operations into the Europe, Middle East and Africa market.

Turkish Cargo has added a second A310-300 freighter to its fleet in early December. The aircraft, with 32.7 tonnes capacity has been deployed to Paris, London, Cologne, Zurich and Tbilisi and has also increased the frequencies of current scheduled cargo flights to Frankfurt, Maastricht, Tel Aviv, Almaty and Delhi.

The cargo division of Turkish Airlines said it will also convert two of its A310- 300 passenger aircraft to freighters in 2008 giving it a total of four by the end of next year. With the enlarged freighter fleet Turkish Cargo will look to add new destinations including Milan, Madrid, Moscow, Munich, Dubai, Amman, Baku and Tashkent.

Turkish Cargo currently off ers scheduled cargo flights to Maastricht, Frankfurt, London (Gatwick), Paris (Charles de Gaulle), Tel Aviv, Cologne, Almaty, New Delhi, Zurich and Tbilisi with its A310-304F freighters.

One month after its start up, Brussels' based Cargo B Airlines has added a second B747 to its fleet.

Regular services to Libreville, Johannesburg and Nairobi started on 14 October with two weekly flights from Brussels. In addition to the regular African flights, the airline has operated charter flights to Cairo, Addis Ababa and Dar es Salam.

The second aircraft will be used to increase the frequencies on the African network. This will be followed by the planned start up of South American services at the beginning of 2008.

SAS Cargo said it is happy to tap the belly holds of its passenger sibling after Scandinavian Airlines announced a series of route expansions in October. According to the plans SAS will start with four weekly departures between Copenhagen and India and three weekly departures between Copenhagen and San Francisco.

¡°For quite some time we have been looking for the right solution for our customers with a need for direct air cargo transport between India and Scandinavia. Therefore, SAS' decision is very relevant for us. The opening of San Francisco as a new destination will also be good news for our customers, since we already have quite some tonnages between Scandinavia and the American west coast,¡± said Kenneth Marx, President and CEO for SAS Cargo Group A/S.

The new routes will not affect SAS' current route network since the airline will add another Airbus A340 to the fleet. On average an Airbus A340 can be loaded with approximately 15 tons cargo per trip.

Moscow Domodedovo International Airport has new route destinations after Transaero launched new regular flights to Sydney, Johannesburg, and Mauritius.

Schedule flights from Moscow to Sydney with an interim landing in Hong Kong were launched on 24 December and operated once every fortnight using Boeing 767 aircraft. Transaero will be one of the few European airlines, alongside British Airways, Virgin Atlantic and Air France, to operate regular flights to Australia.

On 29 December Transaero will start operating regular flights from Moscow to Mauritius via Johannesburg. The airline will operate Boeing 767, three times a month.

British Airways World Cargo has announced that it is to invest £850,000 to expand its Perishables Handling Centre (PHC) at London Heathrow Airport. The extension will add 2,325 square feet to the centre and include a new Border Inspection Post (BIP) facility for non-human consumption products of animal origin.

Construction is expected to be completed by the end of February 2008 and like the carrier's existing BIP, it will be operated on behalf of BA World Cargo by Christian Salvesen.

First opened in 1998, BA World Cargo's PHC is a fully chilled, 69,000 square feet facility specifically designed to meet the needs of perishable cargo shippers and importers. In 2006, the facility handled over 115,000 tonnes of perishable goods including fresh fruit, vegetables and flowers.

Swiss WorldCargo, the air cargo division of Swiss International Air Lines Ltd., has added capacity in India with the launch of a new daily flight to Delhi, effective from 25 November.

With each flight, utilising an Airbus A330, Swiss WorldCargo will off er 18 tons of cargo capacity to and from Delhi, in addition to the 22 tons already available to and from Mumbai.

"Swiss WorldCargo wholeheartedly welcomes the new destination of Delhi. India is a strategically important cargo market that has shown massive and sustained growth over the past few years and promises to rival the largest markets in the world before long," said Oliver Evans, Chief Cargo Officer.

From 1 December time:matters, the courier, same day and emergency logistics division of the Lufthansa group, will cooperate with the Slovenian airline Adria Airways. Th e airline, which is based in the Slovenian capital of Ljubljana, is the country's largest carrier and member of the Star Alliance carrier network.

With the new partnership, time: matters expands its route network that encompasses around 400 destinations in 90 countries to Ljubljana Airport. "This will result in advantages not only for companies that have particularly urgent shipments to send to or from Slovenia - the companies based in neighboring Austria or its bordering country Slovakia will benefit from the new same day hub at the nearby Ljubljana Airport as well," according to time:matters.

Lufthansa Cargo AG, which spun off time:matters in 2002, owns 49 percent of the company shares.

Russia's AirBridgeCargo Airlines, a subsidiary of the Volga-Dnepr Group, recently celebrated delivery of its first new 747-400 Freighter to enter the cargo operator's expanding fleet. The 747-400F is the first of two leased from GE Commercial Aviation Services (GECAS) that will expand AirBridgeCargo's existing fleet of five 747-200/-300 Freighters.

"The Boeing 747-400 Freighter is the world's leading cargo airplane and will bring new efficiencies to AirBridge- Cargo," said Gennady Pivovarov, senior vice president of Production, AirBridge- Cargo.

The most recent Boeing World Air Cargo Forecast projects that the cargo market between the Commonwealth of Independent States and Europe will grow at an overall average annual rate of 5.7 per cent during the 2005 - 2025 forecast period.

KLM Royal Dutch Airlines, part of the Air France/KLM Group, has placed an order for additional Boeing 737 and 777 aircraft. The airline will add three Next-Generation B737-700s and two B777-300ERs (Extended Range) to its fleet. KLM also took options on one additional B737 and two additional B777s. The order is worth approximately US$716 million at catalog prices.

With today's announcement, the airline has six B777-300ERs on direct order with Boeing and is scheduled to take delivery of its first of this model in the first quarter of 2008. KLM currently operates a fleet of 15 B777-200ERs in a combination of leases and direct purchases.

The carrier also signed a contract with Airbus for the acquisition of two further A330-200s, bringing their total A330 fleet to 12 aircraft.

Ryanair, Europe's largest low-cost carrier, took delivery recently of its 150th Boeing Next-Generation 737- 800. The 146th, 147th, 148th, 149th and 150th 737s for Ryanair were parked in formation at Boeing Field in Seattle, where they underwent flight-testing prior to delivery to Ryanair.

Asia's airports and airlines are better poised to cope with and compete in the global marketplace than American carriers, United Airlines' chief executive Glenn Tilton, one of the most outspoken advocates for US airline consolidation, told 300 business leaders in Boston recently.

Tilton said by 2010, more than onethird of the world's air traffic will be to, from or within Asia, according to a Boston Globe report.

"There is a sense of possibility that the global economy can be shaped to serve Asia's interests - and a clear understanding of the vital role aviation plays in creating that future," Tilton said.

"Work is well underway in China to relieve congestion and convert China into a global aviation leader by completing its ambitious US$17.7 billion plan to modernise its aviation system, add 49 new airports and more than 600 new aircraft, along with 700 other airport expansion projects, by the year 2010," Tilton said according to the report.

"And growth is not limited to Asia. In the Middle East, Dubai is building a new airport with the latest technology, best passenger comforts, and six runways - all capable of landing the world's largest new passenger aircraft - to serve as a new global 24/7 airport."

In contrast, he said, the US has failed to modernise its aviation industry's infrastructure and regulatory environment to keep up with technological advances because of special interest group lobbying over how to pay for and implement new systems.

"U.S. aviation once led the world in innovation, efficiency and competitiveness," Tilton said. " Today, we no longer lead." Earlier this month, rumors swirled about United and Delta talking about merging ¨C a combination that would create the world's largest airline. Tilton declined to comment on the talk of a possible United/Delta merger, but said consolidation is giving European and Asian airlines an advantage.

He said the four-year-old merger between KLM and Air France has created the world's largest international carrier, based on revenue, and China Eastern Airlines is poised to become a world-class carrier after its September announcement that Singapore Airlines was seeking to buy a 24 per cent stake in its business.

Tilton highlighted the need for consolidation in the US aviation industry saying: "In the US today, we have a total of 150 certificated airlines - including six majors, five low-cost carriers and nine regional carriers."

"It was the goal of deregulation back in 1978 to create a market with much more choice and better pricing options for consumers. That ambition has more than been achieved. Washington's desire to keep the industry fragmented, driven by domestic market concerns, has led to a resistance to the normal order of free market activity."

Icelandair Cargo, in co-operation with Canadian freight forwarder Fly Fresh Freight, has introduced a weekly direct B757-200 freighter service between Keflavik, Iceland and Gander in Newfoundland, Canada.

The Icelandic carrier said it expected traffic on the new service to be mainly fresh seafood products and air freight linked to Newfoundland's growing oil and gas industry.

"With this new connection, Newfoundland is able to connect into the freighter network that Icelandair Cargo offers from Keflavik to several European markets including the UK," it added.

The International Federation of Freight Forwarders Associations (FIATA) has voiced its total opposition to the US requirement for all containers imported into the US to be scanned by 2012.

"The disastrous effect on the supply chain of scanning all export containersworldwide is evident," said Fiata.

Operations at all ports will be unreasonably delayed and the resulting congestion would become unbearable, the association said. The additional port installations need for screening every container will cost millions, or even billions of US dollars, Fiata added.

"One hundred per cent scanning of boxes is simply impossible and would slow down the world trade and be a hindrance to a smooth transport chain."

The freight forwarding industry believes that the advance cargo declaration that is already applicable for sea container shipments and will become applicable for all shipments from 2009, together with appropriate intelligence, is a "much more practical and valuable approach."

Mutual recognition of the various security programmes worldwide such as C-TPAT, AEO and others will also help the security analysis.

FIATA said it hopes for workable security measures with the highest added value for security. "We are convinced that our opposition to the 100 per cent scanning is shared by the many other involved parties.

"Simply, the process will implicate cargoes that are "low to no" risk based upon existing vetting systems and consequently create pointless costly and time consuming burdens to international trade."

Northwest Airlines' cargo future is looking grim as the carrier prepares for the loss of its largest customer, DHL Express, next year. Northwest said it will quit flying for DHL late next year.

The carrier may be forced to consolidate its airfreight business, or to consider a merger, but it claims selling it is not an option. Chief financial officer Dave Davis said Northwest is "actively looking" for the right partner for a possible merger. Northwest's fleet of 747 freighters makes it the only US carrier with dedicated cargo aircraft.

Hawaiian Airlines has announced its widebody fleet renewal, saying it will replace its 18 B767-300s and -300ERs with up to 24 new Airbus planes comprising six firm A330-200s and six firm A350 XWB-800s plus six options for each type.

The deals signed with Airbus and Rolls-Royce are worth nearly US$4.4 billion at list prices if all purchase rights are exercised.

American Airlines Inc. said the UK should break up BAA Ltd.'s monopoly over London airports including Heathrow and Gatwick because the services are so poor that carriers are shifting flights to other cities, according to Bloomberg.

"The only thing worse than a public monopoly is a private monopoly,'' said Don Langford, managing director of services in Europe and India for American Airlines, which is owned by AMR Corp.

"Heathrow is so bad that we've shifted some capacity. There's peeling paint, missing light bulbs, duct tape on the floor and all manner of poor housekeeping in our terminal.''

The comments at a Parliament hearing in London add pressure on BAA as Britain's Competition Commission considers a forced breakup while the Civil Aviation Authority reviews the prices it charges to airlines. Grupo Ferrovial SA of Spain bought BAA last year.

BAA, the world's biggest airport operator, defended its performance, saying it is struggling to cope with years of under investment.

"We have much to do in terms of improving our service, and we are making those improvements,'' BAA Chief Executive Officer Stephen Nelson told the committee. The company has cut waiting times at security checkpoints and is hiringmore staff , he said.

Chile's LAN Airlines announced it has ordered 32 Boeing 787 Dreamliners, marking the largest 787 acquisition to date for Latin America. The Santiago-based carrier has ordered 26 airplanes from Boeing, and will lease an additional six 787-9s from International Lease Finance Corp. In addition to the Dreamliner order, Boeing said LAN also has committed to acquiring four 777 Freighters - two from Boeing and two to be leased from GE Commercial Aviation Services (GECAS).

During a visit to Washington recently, IATA DG and CEO Giovanni Bisignani urged US officials not to employ congestion pricing at crowded US airports such as New York JFK and described President George W. Bush's recent efforts to alleviate flight delays as "a political placebo for a serious long-term illness," according to an ATWOnline report.

Bisignani met with US Transportation Secretary Mary Peters yesterday morning and, while telling reporters following a luncheon speech to the Aero Club of Washington that it would be "inelegant" to disclose the substance of their conversation, made it clear he believes DOT would make a major mistake if it attempted to impose flight caps and "peak pricing" at JFK and other airports.

"Instead of addressing the problem, DOT wants to change the way people travel by making it more expensive to fly at peak times," he said. "We don't have one example of congestion pricing working anywhere in the world."

Delta Air Lines has said its board has established a special committee to review the carrier's strategic options, including "potential consolidation transactions." This emerged after a key shareholder - Pardus Capital Management, which owns 1.25 per cent of Delta's shares, urged it to merge with United Airlines.

Pardus said it was "imperative" for the carrier to merge with another carrier because of the rapid rise in fuel prices and the associated business risk of operating as a singular entity. Pardus also holds shares in UAL Corp.

Delta, which emerged from bankruptcy earlier this year after fending off a hostile takeover bid by US Airways, said recently that it is considering selling off its regional subsidiary Comair.

Ethiopian Airlines has leased two GEpowered Boeing 747-200 freighter aircraft from South Air Inc based in the US. The carrier is seeking to tap the increasing airfreight demand for flower exports.

The first B747 will be used for daily services to Ethiopian's Brussels cargo hub while the second launched its once-a- week freighter services to Hong Kong on 4 January, making the Ethiopian cargo operation a "pioneer" African Airline linking Asia with Africa in this sector, the airline said.

The two leased aircraft will fill the gap until the airline receives two already ordered MD-11 freighters one of which will arrive in December 2008 and the other in August 2009.