Italy’s Alitalia Cargo, a subsidiary of the country’s former national carrier and Europe’s seventh-largest air freight operator last year, may be sold to Cargoitalia’s parent Alis Aerolinee Italiane that has made a binding offer of €14.5 million for the company’s five MD-11 freighters. Cargoitalia says the sale must be completed by 9 March and if it is, it will hire 15 pilots within one month of closing the deal and another 15 pilots for each MD-11 that enters its … [Read more...] about EUROPE & CIS: Cargoitalia parent makes offer for Alitalia Cargo

As widely expected, Airbus has announced the first production cuts in response to the deepening recession which has sent the global aviation market into a tailspin. A growing number of airlines are seeking to defer or cancel aircraft deliveries, as they are forced to cut capacity to try to match falling demand for air traveland air cargo. Airbus and its rival Boeing are finding their record order backlogs no longer offer protection against the impact of the global recession, which is forcing … [Read more...] about EUROPE & CIS: Airbus cuts production as traffic plummets

The Middle East aviation industry should brace for further turbulence this year, with the region’s airlines poised to rack up combined losses of $200 million this year – twice the amount they lost in 2008, according to the International AirTransport Association (IATA). IATA warned that growth in regional passenger and air cargo traffic in 2009 would “slow to a crawl” of only about 1.2 per cent due to the global recession. At the same time, IATA forecasts that capacity … [Read more...] about MIDDLE EAST: ME carriers to see losses double in '09

Korea Air Lines, the world’s largest cargo airline, said it expects US crude oil prices to average US$75 a barrel in 2009,down from US$99.75 a barrel in 2008. As a result, the country’s two carriers, Korean Air and its smaller rival Asiana Airlines said last week they would abolish fuel charges for Korea-outbound international passenger flights from 1 March to 30 April, but Korean Air said surcharges on cargo will remain at 30 won (US$0.22) per kilometre, the lowest level of fuel … [Read more...] about SOUTH KOREA: Korean sees crude prices at US$75/bbl in '09

The IMF has cut its growth forecast for China’s economy to 6.7 per cent this year from 8.5 per cent and called upon Beijing to focus on boosting domestic demand. “It implies a lot of changes - difficult changes, painful changes - in the Chinese economy,” Dominique Strauss-Kahn, IMF managing director, said of the revised projection. China’s economic growth slumped to 6.8 per cent in the fourth quarter of 2008z with exports posting a 2.8 per cent year-on-year decline in … [Read more...] about CHINA: IMF cuts China's growth forecast