KQ seeks to take over some major routes from South African Airways

South African Airways

Kenya Airways wants South African Airways (SAA) to leave for it some of the routes it operates in Europe and West Africa as the national carrier seeks to expand its reach ahead of the planned formation of a Pan-African airline.

The Kenyan carrier signed a Strategic Partnership Framework with SAA last November, which formed a key milestone towards launching a joint continental airline.

Transport Principal Secretary Joseph Njoroge says London and Abuja are some of the routes that KQ, as the airline is known by its international code, desires to get from the ailing SAA in order to expand its customer base.

The airline wants to use Johannesburg as a stopping point to pick up passengers to London or Abuja.

KQ wants to capitalise on the woes facing the South African carrier to improve its revenue and presence on both the European and West African routes.

“There are routes that KQ desire to take from South African Airways because of their strength on routes and available aircraft, we are still in negotiation on this matter,” said Njoroge.

SAA has been in financial turmoil for a couple of years, which saw the airline halt its activities for nearly a year before resuming service partially in 2020.

The airline has been downsized significantly as a result of bankruptcy and shrunk its workforce by about 80 percent. The carrier is currently flying to nine domestic and international destinations with a fleet of six Airbus SE jets.

The partnership framework followed a Memorandum of Cooperation that the two airlines signed in September 2021 to foster the exchange of knowledge, expertise, innovation, digital technologies, and best practice between the two.

The signing of the Strategic Partnership Framework by the pair will see both carriers work together to increase passenger traffic, cargo opportunities, and general trade by taking advantage of strengths in South Africa, Kenya, and Africa.

The PS said part of the initiative signed by the duo included the training of Kenya Airways pilots in South Africa. “South Africa is ahead of us when it comes to aviation training and we want to leverage on this and use SAA facility as our training hub,” the PS said.

Kenya does not have a simulator for Embraer 190 aircraft and local pilots are trained in either Johannesburg or Amsterdam.

Source: Business Daily

Heathrow says travel disruption is easing due to passenger cap

travel disruption

London Heathrow claims the cap on passenger numbers has helped the airport to weather the travel disruptions, according to the airport’s July 2022 traffic report. 

“The cap on departing passenger numbers has delivered improvements to passenger experience, with fewer last minute flight cancellations, better aircraft punctuality and baggage delivery,” the airport outlined in the report.  

After weeks of travel disruption, with passengers waiting in long queues at airports, Heathrow introduced the cap on passenger numbers on July 12, 2022, with a rule to handle no more than 100,000 departing passengers a day until September 11, 2022.   

Consequently, Heathrow received criticism from several airlines across the world because carriers were forced to reduce the number of flights to the UK’s largest airport during the busy summer period. 

However, Heathrow Airport has hit back at airlines for failing to attract ground staff to work at airports due to low wages, explaining that ground handling staff “do not work for the airport itself and are independent businesses contracted to airlines”.  

“For months ground handling companies have been trying to recruit and train skilled workers, but if their airline customers aren’t willing to pay market rates, then they aren’t able to fill the posts,” Heathrow’s Chief of Staff and Carbon, Nigel Milton said in a statement date July 21, 2022.  

In July 2022, the airport accommodated more than 6 million people. Looking ahead, Heathrow forecasts a total of 16 million passengers will travel through the airport between July and August 2022. 

Read Also: The UK Launches A 22 Point Plan To Tackle Air Travel Disruption

Source: Aerotime Hub

Uncovering the True Value of Omnichannel Retailing and Servicing for Airlines

Omnichannel retailing

Business travel is back — not to pre-pandemic levels, of course, but companies are encouraging their employees to hit the road and get real face time (not to be confused with Apple’s video calls) with vendors, partners, and potential new customers. As airlines take big steps toward a better future with investments for sustainable fuel and pay increases designed to solve the labor shortage, it’s time for the industry to focus on making a difference long before any of those business travelers arrive at the gate with better booking and service processes.

Plenty of corporate travelers opt to book direct, preferring the same experience they are used to on their favorite carrier’s website or mobile app. However, it’s no secret that the process is often more complicated than it needs to be. Since a corporate traveler will often appear as any other regular customer, policies for expenses aren’t available. Then, they might have to submit their expenses — only to discover that their tickets or ancillaries are not eligible for reimbursement. Plus, travel managers aren’t even aware about the booking in the first place. It’s a mess of disjointed information that creates headaches and frustrations for everyone involved in the process.

Navigating Around the ‘Iceberg’

That deep cavern of information is what Kyle Moser, director of multinational sales at American Express Global Business Travel, compares to an “iceberg.”

“Only about 10 percent of [a travel reservation] is visible,” Moser said in a recent episode of Airlines Reporting Corporation’s (ARC) Omnichannel Chatter podcast. “There is a mass of stuff that goes on underneath that most people don’t get.”

Omnichannel retailing and servicing helps sync all that information and turns a turbulent booking journey into a smooth ride. ARC acquired nuTravel in 2020 with a focus on making omnichannel a reality for the aviation industry, and now, nuTravel has unveiled Universal Connect — the first open and agnostic integration platform that enables direct booking capabilities with access to corporate rates and travel policies. United Airlines is already part of the beta, with American Airlines coming onboard soon.

“If a traveler’s company is registered with nuTravel’s Universal Connect,” Joe Ascanio, vice president of marketing and digital strategy at nuTravel, told Skift, “that traveler can go to a participating carrier’s app or website and book their travel with their corporate negotiated rates, payment methods, and travel policy information available, creating a consistent experience with corporate or TMC booking tools.”

For business travelers who are tired of dealing with a cumbersome booking process, the chance to book that flight to next week’s big meeting the same way they booked that flight for their summer vacation is a breath of fresh air. Finally, they can enjoy the ingredients that have seemed elusive for so long: flexibility and freedom.

Taking a Cue From Consumer-Facing Brands

An omnichannel approach might sound new for the corporate world, but Sarah Boyd, senior manager of airline retailing solutions at ARC, highlights that all those business travelers are quickly getting used to frictionless planning and purchasing in every other facet of their lives. Consider how Amazon — the ultimate name in ecommerce — has embraced a brick-and-mortar approach to give customers access to services away from their screens. The company operates physical counter locations where customers can easily pick up packages, drop off returns, and get in-person assistance. The experience that a customer might begin on their smartphone or laptop picks up right where they left off when they walk into the store. And if a customer doesn’t have access to an Amazon counter location, they can head to a dedicated Amazon counter at Kohl’s.

It’s not just Amazon, either. Consumers can browse for eyeglasses in store and then buy them in an app with Warby Parker, and they can try on makeup in an app and then buy it in store with Sephora. It’s a buy anywhere, service anywhere model that customers love.

“Today’s traveler expects an omnichannel experience since they receive that with other products,” Boyd said. “Customers don’t understand why they might not see their corporate rate if they book directly with the airline or why they don’t have access to certain ancillaries through travel agencies.”

Simplifying the Servicing Aspect — And Keeping Everyone Informed

The initial booking decision is just one critical piece of the omnichannel puzzle. When corporate travelers want to make changes — opting to extend a trip to have their family join them, for example — that adjustment shouldn’t require retracing any steps to get back to the original booking channel. “When customers need to manage their booking,” Boyd said, “they can do that through whichever channel is most convenient and have access to the same options and policies.”

While it’s important to make the traveler’s life easy, it’s equally essential to make sure that corporate policies are applied and the travel manager is in-the-know, too. “If a traveler books through an agency using a direct connection with an airline, like NDC, but needs to make changes at the airport with a customer service representative, the airline can then use NDC messaging to push those changes back to the agency,” Boyd said.

Speaking of change, it has never come easy in a corporate travel space that often seems unmovable — a characteristic that makes Moser’s iceberg comparison even more appropriate. While Boyd acknowledges that shifting to an omnichannel model is a “complicated challenge” for airlines and agencies, she believes it is essential for the future of travel. She explained, “The members of the travel industry who best keep pace — whether airlines, agencies, or travel managers — will be best positioned for success.”

Source: Skift

Soaring cost of flying cargo threatens region’s recovery

Everywhere around the world, reports indicate, the cost of flying cargo continues to rise and negatively impact on an industry that is yet to fully recover from Covid-19 pandemic.

The Africa Airlines Association (AFRAA), a trade association of airlines on the continent, indicates that expensive jet fuel, or aviation turbine fuel, and other expenses are weighing down on profits.

According to AFRAA, full-year revenue loss for African airlines for 2022 is estimated at $4.1 billion, equivalent to 23.4 percent of the 2019 revenues.

To stay in business, reports indicate, airlines adjusted their fares upward because of a sharp rise in the cost of jet fuel. The cost of jet fuel, it is reported, has increased 36 percent in the last six months, prompting airlines to add a special levy to protect their margins.

John Bosco Kalisa, the CEO of the East African Business Council (EABC), stressed that “this is terrible” as it will increase the cost of doing business in the region.

“Already the airlines are struggling to recover from devastating impact of Covid-19. Any additional charges will derail the recovery of both the cargo and passenger flights,” he told Doing Business.

The cost of jet fuel – which accounts for a significant portion of expenses involved in running an aircraft – hit a high of $1.25 a litre from $0.85 in January, piling pressure on airlines at a time when the demand for flying remained low as the industry still recovered from effects of Covid-19.

In Rwanda, high freight rates are already casting a shadow over, among others, Rwanda’s horticulture export prospects.

According to Robert Rukundo, chairperson of the Horticulture Exporters Association of Rwanda (HEAR), prices of airline charges increased from Rwf1.8 million to Rwf2.2 million, the latest being Rwf2.5 million because of the rise in fuel costs and taxes. As noted, the cost is $2.67 per kilo in terms of gross weight.

Horticulture exporters especially worried that national carrier RwandAir planned to increase the airfreight fee on a kilogramme of fresh produce from $1.8 to $2, effective August 1.

“Freight charges have gone up because jet fuel prices have doubled in the last few months. All airlines have increased the rates,” Yvonne Makolo, Chief Executive Officer of RwandAir, told Doing Business on Monday, August 1.

Asked what they are advocating for, Theoneste Ntagengerwa, the Private Sector Federation (PSF) Spokesperson, told Doing Business that: “The solution on our side should focus on finding a Rwandan owned cargo airplane, which can allow us to export big quantities but also lowering the cost for export.”

“The second aspect to consider should also be proper policies that support increase of our export to avoid the cargo [plane] being underutilized.”

But Makolo noted that even when RwandAir eventually secures a cargo plane, high freight charges could stay.

She said: “The freighter is in the process of being acquired but that’s not the answer. It will provide additional capacity but unless fuel prices come down, the rates will still be high.”

Besides the pandemic, the war in Ukraine also affected earnings by airlines that had to endure rising costs of jet fuel.

Source: The New Times

DOT Pushes Airlines to Dole Out More Refunds for Canceled Flights

Travelers in the U.S. have shockingly few rights when flights get delayed or canceled. There’s only one ironclad rule, really: If an airline cancels or significantly delays a flight, passengers can cancel their trip and get a full refund – not just a voucher or travel credit.

Two years after an avalanche of complaints from flyers fighting for those refunds as the pandemic first upended travel, federal regulators are finally pushing to tighten those rules – and clear up exactly when travelers are entitled to get their money back.

The U.S. Department of Transportation on Wednesday proposed a new rule that would set even more refund laws in stone. It would require airlines to inform passengers when a refund is available. And it would force airlines who rake in federal subsidies during a future public health emergency, like the $50 billion-plus U.S. airlines collected during the COVID-19 pandemic, to issue refunds for travelers who cancel flights – not just a voucher.

“When Americans buy an airline ticket, they should get to their destination safely, reliably, and affordably,” U.S. Transportation Secretary Pete Buttigieg said in a statement. “This new proposed rule would protect the rights of travelers and help ensure they get the timely refunds they deserve from the airlines.”

What Would Change with Airline Refund Laws?

These new rules have little to do with the recent spate of delays and cancellations that have frustrated millions of Americans returning to the skies this summer. It wouldn’t force airlines to dole out compensation for those disruptions, as we and several members of Congress have called for.

Instead, it’s geared more toward responding to 2020, when airlines pulled hundreds of planes out of the sky as travel collapsed, canceling flights and leaving passengers to fight to get their money back. And they did fight: Consumer complaints to the department regarding airline refunds jumped from under 1,600 in 2019 to almost 90,000, according to Air Travel Consumer Reports – a mammoth increase of 5,587%.

These new proposed rules would set even more down in stone for when travelers are entitled to get a refund.

Chiefly, they clarify exactly how long of a delay or schedule change triggers a refund. Currently, federal rules leave it up to airlines what constitutes a “significant delay.” Most major airlines set that threshold at two hours while some budget carriers consider it a whole calendar day change.

The new rules would set one clear standard, among others, including:

  • The proposed rules would require a refund if an airline changes your flight by three hours or more
  • For international flights, schedule changes of more than six hours would trigger a mandatory refund
  • Adding a connection to a nonstop flight (or additional connections) would be considered a significant delay – another aspect that’s not currently clear in federal regulations
  • Shifting your flight to arrive in or depart from a different airport would trigger a refund
  • Downgrading cabins or class of service would trigger the option of a refund too
  • A plane swap that results in “a significant downgrade of the available amenities and travel experiences”

Giving airlines a three-hour window to change schedules without triggering refunds – and a whopping six-hour threshold for international flights – seems far too generous, especially when many airlines have for years doled out refunds after two-hour schedule changes or delays. But here’s the most important part: These changes would also require airlines to explicitly inform passengers that a refund is available … before offering travel credits or a voucher.

That’s been airlines’ go-to move for the last two-plus years. They’ve sold tickets, canceled flights, and offered vouchers, hoping that passengers don’t know they could get their money back instead.

Without that required disclosure, these new rules are pointless. Airlines could keep doing what they’ve done all along: Stick travelers with a voucher that might expire in a year or less.

Airlines have repeatedly pointed to the fact that they’ve done away with change fees, giving flyers more flexibility to cancel an upcoming flight and pocket a voucher for the value of their ticket. That’s true, but these new proposed rules would also force airlines to be even more generous with doling out credits if anything like another COVID-19 pandemic strikes.

Namely, it would require airlines to issue travel credits or vouchers that never expire if a passenger cancels due to travel bans or restrictions, during a future public health emergency, or simply due to health advice from a medical professional.

Most airlines’ travel credits expire just one year from the date of purchase of the original ticket. After a change just last week, only Southwest – long the leader when it comes to changes fees and flexibility – offers travel credits without expiration dates. Delta has publicly considered doing the same.

Will it Actually Happen?

That’s anyone’s guess.

This is all part of the federal rulemaking process, which is a marathon – not a sprint. There’s no guarantee these changes will become law anytime soon, if ever.

For instance, the U.S. Customs and Border Protection has been pushing to raise the price of Global Entry through the federal rulemaking process since January 2021. Nineteen months laters, there’s still no sign of when that price increase may take effect.

With these proposed rules now put on paper, it begins a 90-day public comment period on the changes. The Department is also hosting a public meeting to discuss the proposed changes on Aug. 22.

Source: Thrifty Traveler

Airport Labor Crisis Goes Beyond Pay, Ground-Handling Giant Says

Airports need to address their unpopularity as a workplace if they’re to resolve a labor crunch that’s spawned a summer of travel chaos, the world’s biggest ground-handling firm said.

While pay hikes may narrow the staffing gap, they won’t resolve deep-seated issues in attracting new recruits, Tarek Sultan, vice chairman of Agility Public Warehousing Co., said Friday after the Gulf firm completed the purchase of John Menzies Plc, which provides handling at hubs including London Heathrow.

“It’s really hard to hire people in this day and age after Covid and we’re really trying to figure out why,” Sultan said on Bloomberg Television. “Nobody has a 100% clear answer. We have to be competitive with our wages, but we also have to look at other ways to improve retention and make this industry a more attractive place to work.”

Heathrow last week blamed airlines and their ground handlers for the turmoil that’s been afflicting European travel for months as demand rebounds from the pandemic. Chief Executive Officer John Holland-Kaye said they’ve been too slow to recruit and that handlers including Menzies are in some cases not paying enough to compete with firms like Amazon.com Inc. as they seek staff.

Sultan said that while Kuwait-based Agility understands that it must invest to beef up the workforce, costs would need to be passed on and the airline industry right now is “not the ideal place to be looking to increase prices to customers.” Expenses would have to be offset “in a very measured way.”

He said the travel situation should improve over the next couple of quarters, and that in future the aviation industry as a whole needs to do better in anticipating demand and coordinating step changes in operations.

Edinburgh-based Menzies said Friday that its London Stock Exchange listing was canceled as of 7 a.m. after Agility completed the 571 million-pound ($694 million) takeover.

Agility’s National Aviation Services will take on the name and identity of the Scottish firm, which traces its origins back almost 190 years and provides ground handling, aircraft fueling and cargo services at more than 200 locations in about 40 countries.

NAS operates at about 55 airports across the Middle East, Africa and South Asia.

Source: Bloomberg

Dubai to launch a football-themed hotel ahead of FIFA World Cup 2022 in Qatar

football-themed hotel

As if football fanatics didn’t have enough reasons to get excited about visiting the Middle East for FIFA World Cup 2022 in Qatar later this year, Dubai is all set to leave them even more thrilled. The emirate is opening its first ever football-themed hotel where fans can base themselves during the championship and be shuttled in and out of Doha for the day.

NH Dubai The Palm is launching in November 2022 on the western side of The Palm Jumeirah. Strategically located near some of the country’s top tourist hotspots, the luxury resort will host soccer fans that are scheduled to fly between Dubai and Doha throughout the tournament. There’s an increased demand of accommodation in the UAE from international football fans in recent weeks. The Expat Sport travel agency’s “Football Fans Dubai Experience” will provide a package that includes transportation to and from the airport.

“There will be international fans who are coming to this region for the first time, so being in a relaxed environment with other like-minded individuals in a stunning location on The Palm should make this an enjoyable and unforgettable holiday,” said Sue Holt, executive director of Expat Sport.

NH Dubai The Palm is, therefore, offering a great opportunity to foreign fans spend time in a laidback, luxurious setting with other like-minded guests. The 533-key hotel offers exquisite views of the Arabian Sea, Marina skyline, the iconic Burj Al Arab, and the Dubai Eye. It also has an infinity pool, a wellness centre, a lounge, direct access to the beach, and a sports bar — where you can feel the real thrill of the live football matches on screen. 

The hotel will offer welcome and hospitality packages and discounts to single-day visitors to Doha, along with shuttle services to official fan zones such as Dubai Harbour, Coca-Cola Arena, and Football Park. The welcome packages range from four, eight, and 12 nights, including daily buffet breakfast and one-, two- and three-day return flights, respectively.

At the NH Dubai The Palm, hospitality packages include match tickets. The packages begin at around USD 952 (INR74,842) for a group match, including food, beverages, and stadium parking. At USD 4,900 (INR3,85,216) for a group match, you get Pearl Lounge seat for each, a six-course meal, cocktails, various entertainment, and a dedicated concierge service. For the ultimate immersive experience, go for the stadium suite with private dining at approximately USD 22,557 (INR17,73,329)!

Holt says, “This is a completely new addition to the Dubai hospitality landscape. We are collaborating with the official partners of the FIFA World Cup to make this a unique and immersive experience for our guests.”

Source: Traveldine

Common Mistakes Kenyans Make in Visa Applications

Visa Applications

Kenyans seeking to travel to different destinations across the world are always forced to cut short their trips due to Visa-related hitches that can be avoided in the application process.

The issue involving Africa’s fastest man, Ferdinard Omanyala, who is set to take part in 100m championships in Oregon in the US, lifted the lid on the headache and stress most Kenyans face while planning their journeys.

Other than obtaining a passport, some countries require Kenyan travellers to apply for a Visa, which comes at a fee.

The basic requirements in filling visa forms include family and given name, gender, date of birth, country of passport, passport number, passport date of issue and passport date of expiry, as well as place of issue.

Most travellers receive their approved e-Visas within 72 hours of application.

Common Mistakes

Kenyans are in most cases denied Visas due to mistakes made while completing the application forms or for leaving out some crucial information.

Different embassies expect Kenyans to provide exact details that match those in their passports. Any differences in spelling lead to automatic rejection of the application.

Most Kenyans make mistakes when filling in passport number, date of issue and expiry date fields. Mistakes are made when copying the digits and this may deem the whole process null and void.

Most embassies do not accept any applications with missing information.

While completing the Visa form, Kenyan travellers must upload an image of their passport, a recent passport-size photograph, and proof of travel. Failing to fill the form as stated amounts to disqualification.

Embassies reject applications with passports that do not show all the information clearly. The use of flashlights should be avoided as it causes reflections affecting the clarity of communication.

Others miss out by failing to present the correct size of a passport-size photograph, which does not align with the format stated in the application form.

The proof of travel relevant to the applicant’s reason for visiting should be uploaded. Tourists require a hotel reservation and onward flight tickets. Failing to present the evidence of travel calls for immediate disqualification by any given Embassy.

Kenyans travelling for other purposes such as medical and business must also upload corresponding documentation. Failure to do so prevents the Visa from being approved.

Options for Kenyans who have been denied Visas

Based on the issue, Kenyans who are blocked from travelling due to Visa hitches are given second chances by Embassies and consulates.

Those with mistakes are allowed to correct any errors they made before submitting new requests. 

However, the Visa application fee is non-refundable. For any new application, Kenyans must pay the required fee again.

If the process is rejected, Kenyans who apply through travelling agencies may be refunded some of the application fees.

A Visa still does not guarantee a Kenyan entry to the country of destination. The permit only indicates that a Kenyan traveller is eligible to enter the other country abroad.

Immigration officers conduct inspections and determine whether a Kenyan may enter the country based on immigration laws.

Visas validity varies with the country. An entry Visa to Kenya is valid for a period of three months from the day it was issued.

However, there has been a global delay in the processing of visas and this has affected millions of travellers. 

The British High Commissioner to Nairobi, Jane Marriott, recently admitted that her office was overwhelmed by the growing demand and the backlog created during the pandemic.

Marriott advised Kenyans to apply for their visas six weeks before the travel date to give the Embassy ample time to process them.

She emphasised that Kenyans were not the only ones affected by the delayed process. 

“I know how inconvenienced many of you are. I am sorry. It is a global challenge, not a Kenyan problem only,” the envoy stated.

Source: Kenyans

Kenya post-election business confidence high – survey

post-election business confidence

Business executives in Kenya are optimistic about growth prospect of their companies and the wider economy post election.

According to the latest Kenya Private Sector Alliance (KEPSA) Business Confidence Index, the business community is upbeat about this year’s post-election economic stability unlike in previous years.

The survey reported a confidence index reading of 61, compared to 44 and 53.8 index points in 2017 and 2012 respectively, when fear of violence and disruptions was high. 

With a backdrop of previous cases of electoral violence, it was assumed that some violence would occur which created protection concerns.

However, a high rating this year means most CEOs are expecting a stable economy at least six months after the August 9 polls.

Most business executives also expressed optimism to hire additional full-time employees in the next six months, which will translate to increased business operations.

Conducted between July 4 and July 25, the survey engaged a total of 173 business leaders from medium and large businesses.

It sought views on selected sector indicators including business confidence and optimism, current quarter business activity, and outlook for business activity in the near term.

Most CEOs are counting on a smooth power transition for the economic conditions to improve across all industries compared to six months ago.

Specifically, there is rise in optimism and business expectations for the tourism and hospitality sectors at 85 index points and wholesale and retail at 70 index points.

The least optimistic sectors are finance and ICT, probably because businesses in these sectors were already experiencing growth relative to other sectors at the height of the Covid-19 pandemic, hence executives do not expect much change in the coming six months.

These sentiments are reported against the backdrop of the Russia Ukraine War that disrupted value chains, resulting in fuel, energy, wheat and fertiliser price increase.

This was further compounded by the rising inflation in Kenya and across the globe as well as the extended drought.

Even so, majority of business owners are certain that the economy will continue to grow after elections.

The economy grew by 6.8 per cent in the first three months of the year, the highest in 22 years according to Kenya National Bureau of Statistics (KNBS) data.

This was mainly supported by rebounds in most economic activities that contracted significantly in the first quarter of 2021 due to measures instituted to curb the spread of Covid-19.

According to the survey business executives remain sckeptical about the possibility of reduced production costs due to the prevailing high fuel, raw materials, and other input costs that are expected to go up, thus projecting lower industry growth prospects over the next six months.

They foresee prices of goods and services increasing after elections.

“For the 23 per cent expecting lower growth prospects for their companies and the 29 per cent expecting lower growth prospects for their industries, these expectations were tied to failure to address the high-cost production, inflation, rise in fuel prices,” Victor Ogalo, KEPSA deputy CEO said.

The report shows business executives are encouraged by the implementation of key policies and ongoing infrastructure improvement initiatives as well as the various business support subsidies by the government.

In addition to these efforts, executives now want tax concessions and the lowering of raw material prices to improve the business environment.

Source: The Star

Lufthansa Cargo, Cathay Pacific add Swiss WorldCargo to air freight agreement

Lufthansa Cargo Cathay Pacific Swiss WorldCargo

Lufthansa Cargo and Cathay Pacific have expanded their cargo partnership to include Swiss WorldCargo, which they say will provide customers with more choice.  

The freight arm of Germany’s Lufthansa Group and the Hong Kong-based airline first set up their cargo joint business agreement in 2016, allowing them to coordinate sales, pricing, contracts, and the handling of shipments between Hong Kong and Europe.  

Adding Swiss WorldCargo to the agreement will see the airlines initially cooperate on traffic from Hong Kong to Zurich and Frankfurt. Traffic to and from Hong Kong and the rest of Europe will be included in the expansion with Swiss WorldCargo later this year, the carriers said.  

The expanded partnership comes amidst a busy time for the air freight industry, with supply chain problems resulting from COVID-19 restrictions having boosted the importance of air freight as a method of transporting goods. Lufthansa Cargo has posted record financial results and says an end to the air cargo boom is not in sight.  

Swiss World Cargo is the air freight arm of Swiss International Air Lines, itself a part of the Lufthansa Group.  

“The addition of Swiss WorldCargo’s flights to the already large combined network of Cathay Pacific and Lufthansa (LHAB) (LHA) will further bring Hong Kong, the world’s busiest air cargo hub, closer to Europe and strengthen one of the world’s great trade lanes,” commented Cathay Pacific Director Cargo Tom Owen in a statement on May 31, 2022.  

Lufthansa Cargo CEO Dorothea von Boxberg said cargo customers should gain quicker and easier shipping. “The expanded joint venture will generate numerous benefits for our customers because our networks, our hubs and our fleet complement each other effectively.” 

The carriers said the joint activities will be carried out in compliance with all relevant laws, including those in Hong Kong and the European Union. 

Source: Aerotime Hub