SIA Cargo takes maindeck capacity to Brazil
Singapore Airlines Cargo has launched its first scheduled freighter service to South America, to Sao Paulo in Brazil. The once weekly B747-400 freighter service from Singapore Changi Airport to Sao Paulo’s Viracopos-Campinas Airport was launched in mid-August, operating via Hong Kong, Anchorage (technical stop) and Dallas Fort Worth. The return trip to Singapore is routed via Dallas Fort Worth, Brussels and Sharjah.
This new freighter service complements the cargo capacity available on Singapore Airlines’ thrice-weekly passenger flights between Singapore and Sao Paulo’s Guarulhos International Airport, via Barcelona. “This new freighter service demonstrates our confidence in the growth potential of the Brazilian market, and extends our network coverage to over 70 cities in more than 30 countries,” said Tan Tiow Kor, SIA Cargo’s senior VP Sales and Marketing.
He added: “Brazil is one of the world’s fastest growing economies and its major imports include machinery, electrical and transport equipment, chemicals, cotton, automotive parts and accessories. Its principal exports include transport and transmission equipment, heavy machinery, generators, transformers, footwear and food products. Our services provide convenient links between Brazil and major global markets.”
The new service to Brazil represents DFW’s first direct cargo connection between Asia and South America and the first all-cargo freighter flight from DFW to South America. Singapore Airlines will expand the flight to twice weekly service by the fall, DFW International Airport CEO Jeff Fegan said.
“This new Singapore Airlines Cargo flight to Brazil marks an important milestone for DFW, because it not only marks DFW’s first freighter service into South America, it also establishes our airport as a vital transport link between Asia and South America,” said Fegan. “We believe this route will further demonstrate that DFW represents a tremendous gateway opportunity for international air traffic, and hopefully lead to more growth at DFW and in support of the Dallas/Fort Worth economy.”
DFW said it offers cargo airlines two million square feet of cargo warehouse space, seven unrestricted runways, 24-hour-a-day/seven-day-a-week operations and a prime central location for distribution of goods in the US. The expansion of cargo service often serves as a leading indicator of economic growth, according to a DFW statement. “Brazil has one of the world’s fastest growing economies, and with DFW the fastest growing region in the US, it is one of DFW’s key strategic markets for expansion.”
In the last decade, DFW’s cargo service has more than tripled. From June 2011 to June 2012, 654,000 tonnes of cargo shipped from DFW, with almost half of that total shipped by international cargo carriers. DFW currently serves as home to a total of 14 dedicated cargo airlines.
SIA sees overall profit rise, cargo loss
Singapore Airlines’ first quarter net profit soared 73 per cent from last year, it said recently, partly driven by higher passenger traffic. But the figure was magnified by a low profit figure for the corresponding period in 2011, when it was hit by higher fuel costs and soft demand due to the earthquake and tsunami disasters in Japan.
The carrier, considered a bellwether for the full-service airline industry, said net profit came in at S$78 million (US$62 million) for the quarter to June 2012, compared with $45 million last year. Group revenue advanced six per cent to $3.78 billion, while expenditure climbed four per cent to $3.71 billion.
But the carrier painted a gloomy outlook for the rest of the year in a “difficult environment”, with the price of jet fuel – which accounts for 40 per cent of total expenditure – still near historical highs despite retreating somewhat.
“The global economy remains uncertain as Europe struggles to contain its debt crisis, while the United States faces a sluggish recovery,” said the airline. “This has negatively impacted business confidence and the outlook for travel demand.”
The carrier said that forward indicators for air freight signal a weak outlook for its cargo business. Continued weakness in airfreight demand exerted downward pressure on cargo loads and eroded yields in the first quarter, the company said, adding that SIA Cargo’s operating loss for the period widened by $35 million to S$49 million.
