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Joon San

Wong Joon San

United Airlines Cargo has seen exports from Asia to the United States surge by about 10 per cent this year.

 However, UA Cargo vice-president James Hartigan said trade from the US to Asia had been flat.

 'While everybody has been losing market, we have been gaining,' he said, adding that the airline's cargo revenue was expected to rise to US$921 million for 1998.

 A source said about 13-14 per cent of total revenue was expected to be from freighter operations.

 According to the International Air Transport Association (Iata), UA Cargo last year ranked eighth among airlines globally, up from 10th in 1994, handling 4,177 tonnes per kilometre.

 Mr Hartigan said the airline's freighter operations, conducted with four DC10s, complemented its cargo operations - which were carried mainly in the bellies of passenger planes.

 Two of the four freighters are on dry lease, meaning they have been sold to third parties and leased back.

 UA Cargo obtains 12-15 per cent of its revenue from international business and 7 per cent from its domestic business.

 US-based Mr Hartigan, who has just visited Asia, said the sentiment of people in Japan and Hong Kong was rising and they felt the economic situation had bottomed out.

 The feeling in Asia was that if the Japanese yen held its position in the range of 115-120 yen against the US dollar, it would provide a natural balance between the US and Asia.

 Mr Hartigan said air cargo rates out of Asia to the United States were strong and provided good yield for the airline.

 Passenger and cargo loads from the US to Asia stood at 70 per cent, while the Asia to US flights were full.

 Mr Hartigan expected January and February to be soft months, but March would see the usual peak. It was premature to make any forecasts from April onwards.

 If the airline could gain additional landing slots at Tokyo's Narita airport for its freighter operations, it also would be interested in flying to Hong Kong, Mr Hartigan said.

 The Asia Airfreight Terminal had suffered from teething problems but was now operating properly, he said.

 Mr Hartigan ruled out any early switch to MD-11 aircraft from its present DC-10s, saying the airline's use of DC-10s made sense at present and no decision would be made regarding aircraft for 12 months.

 However, the company would explore other 60-tonne aircraft in the near future.

 Mr Hartigan, who also serves as chairman of Cargo 2000, the special Iata interest group formed in March last year by 20 leading airlines and 17 freight forwarders, said a survey of shippers was carried out in July last year which showed they wanted a full range of door-to-door services with time-definite products of a global nature and at competitive price levels.

 The shippers wanted delivery as promised on time against measurable criteria, proactive communication, simplified procedures and accurate billing, he said.

 Cargo 2000 aimed to meet customers requirements.

 Mr Hartigan said the present flow of air cargo - which now involved 40 steps - would be halved to 20 in the future.

 But this depended greatly on electronic data interchange to provide paperless trading, he said.



UA Cargo posts 10pc jump in cargoes to US