China's - Orient Aviation

CARGO UPDATEBy Charles AndersonJapan Airlines is bringing smaller,fuel-efficient aircraft into its cargofleet for use on new routes close tohome as it shakes off a dependency onB747s and expands its freight businessin the region.The carrier is adding four B767ERFs toenable it to launch extra freighter services toNorth and Southeast Asia and, in particular,to medium size cities in China. Demandis increasing thanks to the rapid growthof logistics between the Mainland andJapan as Japanese companies increase theiractivities there and the country’s economyshows sustained growth.At the same time, JAL is replacing ageingB747-200Fs with B747-400 conversions forservice to major Asian cities and to NorthAmerica and Europe, increasing tonnageand cutting out the need for a refuelling stopin Anchorage.The plan is to develop bothfrequency and network, usinga combination of large andmedium-sized aircraft, saidYuji Fujita, vice-president,cargo planning and marketing.Particular attention is beinggiven to markets where cargodemand is growing beyondpassenger aircraf t bellycapacity. And that meansChina and Southeast Asia.JAL is eager to expand itsnetwork within Asia and Japanby taking maximum advantageof the B767Fs, he said. China inparticular has many mediumsizecargo centres that stand tobenefit from a link with Japan.Cargo makes up only 12% of total revenueat JAL, which is struggling to return toprofitability under a five-year restructuringplan.Many B747s are being phased out of thepassenger fleet as part of the plan. But thecargo business is slowly improving – freightrevenue rose 5.5% in 2006 – but is beinghampered by rising fuel costs, hence theneed to cull some of the JAL jumbos.The third B767ERF was due to arrive latelast month, when a new service to Vietnamvia Bangkok was to be launched. Shanghai,Dalian, Qingdao and Tianjin in China, HongKong and Jakarta are already receiving B767flights, which sometimes stop over at Kansaiand Chubu after leaving Narita. B747s have42 ORIENT AVIATION NOVEMBER 2007Smaller is beautifulfor JAL CargoB767ERFs replacing B747 Classicsbeen phased out on some Southeast Asianroutes. They remain on big city services,meaning the scale of demand in each marketcan be met.“The B767 is an excellent aircraft forsmaller stations where there is considerabledemand,” said Fujita.As part of JAL’s Asian freight expansion,a dedicated cargo service to Manila wasadded last year, as were late-night flightsto Shanghai, taking advantage of KansaiJAL Cargo: expanding its network in Asiaairport’s round-the-clock operations.JAL’s push into China was aided by anagreement last year between the Japaneseand Chinese governments covering routeexpansions. Belly space also increasedthanks to a boost in passenger services.The carrier code-shares with ChinaCargo Airlines on the Shanghai route andwith China Southern Airlines to and fromGuangzhou.There are no immediate signs of a firmerpartnership.“We are always looking into otherpossible joint ventures, but currently nothingis in the pipeline,” said Fujita.Most intra-Asia and transpacific freightis made up of exports from Japan, such assemiconductors, digital appliances, flatscreentelevisions and automobile parts.Goods coming inwards, either bound forJapan or for transshipment to North America,include finished electrical home appliances,clothing and perishable goods. Asian routescurrently generate 40% of JAL’s freightrevenue.Transpacific flights were increased latelast year, as were flights to Hong Kong.Demand to Europe softened, althoughdirect flights to Amsterdamwere due to be increased latelast month.Overall JAL, which standsat 13th in the global freighttonne kilometre list (FTK)when express operators areexcluded, r uns dedicatedf reighter ser vices to 21destinations in 13 countries.Moves into the logisticsbusiness, express deliveriesand domestic night flights areall under consideration.Its current freighter fleetconsists of seven B747-200sand five B747-400s, two ofwhich are new freighters andthree conversions.The entire -200 fleet will be phased outby 2009 and replaced by up to five moreconversions. The airline also holds fouroptions on those. Its final B767 is due fordelivery in 2009.Meanwhile, rival All Nippon Airways(ANA), which has added four B767ERFs toits fleet for regional use, is to make Okinawaits hub for Asian air cargo from 2009, a movethat will result in Naha International Airportswitching to 24-hour operations.The carrier said it would move 420,000tonnes of cargo a year through Okinawa,bringing freight from Japan for onwardshipment. Currently, the airport handles2,400 tonnes. Talks about development areunder way.