International News

International Insight Korean Air Co. says it will launch a new budget airline within three years serving domestic and shorter international routes. South Korea’s largest airline said in a statement that it has been pondering a low-cost carrier...


International Insight

Korean Air Co. says it will launch a new budget airline within three years serving domestic and shorter international routes. South Korea’s largest airline said in a statement that it has been pondering a low-cost carrier since 2005 and that it could be set up using one of its affiliates, Korea Airport Service, rather than creating an entirely new company. The move aims to “proactively deal with changes in the airline industry,” Kim Young-ho, president of Korean Air’s passenger division, said in the statement.

DHL is set on expanding its presence in Seoul, the company’s regional executive says. “Korea is fast and in our business, speed is everything,” Charles Kaufmann, DHL Global Forwarding’s senior vice president of North Asia (Japan & Korea) said in a press meeting. Global Forwarding is one of DHL’s four main divisions, (which includes Express, Freight and Exel Supply Chain) and it deals mainly with air freight and ocean freight services. “Incheon’s facilities are great and there has been continuous growth, which is important because we have to constantly move with the market,” he said. Recently, Korean Air and Asiana Airlines have been expanding their cargo business with the support of the government, which hopes to see Incheon as a logistics hub connecting Japan, China and other countries.

Partnerships/Acquisitions/Contracts

FMC Technologies announces it has executed a contract with Deutsche Post AG to supply all aircraft cargo loaders and conventional aircraft tow tractors for the new DHL hub located in Leipzig, Germany. The efficient operating features, lower cost of maintenance and added value from the lower lifetime total cost of ownership were key elements in selection of the loaders and tractors. The large quantity order of loaders and tractors will be delivered over the next two years to support the new hub’s growth.

Swissport Japan and local partner the Marubeni Corporation have successfully established their collaboration and will now be developing their joint business activities. In the meantime, Swissport Japan has won its first major customer at Nagoya Airport. Shigeru Ohashi has been appointed as company president and CEO and Philip Bowell has assumed commercial and operational responsibility as chief operating officer.

Menzies Aviation announces a third joint venture in India, further extending its partnership with Bobba Group. Menzies, together with Bobba Group, has signed a nonexclusive ground handling licence agreement with GMR Hyderabad International Airport Ltd. (GHIAL). Menzies Bobba Ground Handling Services Pvt. Ltd., a joint venture company, will be one of the two ground handling concessionaires providing full passenger and ramp handling at GHIAL. GHIAL, a joint venture company set up by GMR Group, Malaysia Airports Holding Bhd, Government of Andhra Pradesh and Airports Authority of India to build the new Hyderabad Airport, has granted a seven-year concession to Menzies Bobba Ground Handling Services Pvt. Ltd.

State-owned Air India will form a 60:40 joint venture agreement with Singapore Airport Terminal Services (SATS) to provide ground-handling services at Bangalore International Airport. The two companies had earlier formed a cargo-handling joint venture for the airport and are expected to form a 51:49 ground-handling joint venture for the Hyderabad Airport. The two projects, which are expected to be operational by mid-2008, will together be worth around $36.9 million USD.

People in the News

Urs Stulz, currently director of cargo in Switzerland for Swiss WorldCargo, has been selected as successor of Hans Nilsson as managing director of cargo for Europe. Nilsson will be leaving the company after building a strong team and reaching the targets set for Swiss WorldCargo in the European market. Stulz has a track record of achievements in various commercial functions at Swisscargo and, since 2002, at Swiss WorldCargo. In his current position, he has increased the Swiss WorldCargo share in the home market and set new record revenues in recent months, thanks to improved yield and volume.

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