CSafe, a provider of technology solutions for the temperature-sensitive airfreight market, has announced it is taking steps to include the International Air Transport Association (IATA) regulated Time and Temperature Sensitive Label for healthcare products on its AcuTemp® RKN air cargo container. The new Time and Temperature Sensitive label is part of IATA’s 10th Edition Perishable Cargo Regulations Manual, which officially takes effect on July 1, 2010.

The design of the label is specified in Section 17.10.5 of the IATA Perishable Cargo Regulations. The label consists of internationally recognizable symbols — a red triangle with a thermometer and stopwatch — to alert the shipper that the contents require special handling with respect to time and temperature. The label also includes a double arrow with the text “Time & Temperature Sensitive.” All elements are surrounded by a square of blue hatches to draw attention to the label and provide valuable information to freight handlers about the handling and importance of the container.

“As the volume of temperature-sensitive shipments continues to grow in the pharmaceutical and biotechnology sectors, we feel that early adoption of the new IATA specified label is a positive step in clearly identifying the contents for priority handling,” said Oliver Bootz, vice president of business development for CSafe.

The AcuTemp RKN from CSafe is designed to reduce the detrimental effects of damaged and compromised goods which often result from inadequate temperature management in conventional shipping modes. Since it began service in 2008, the company said, the container has resulted in no recorded product loss.

CSafe will begin applying the new IATA specified Time and Temperature Sensitive label to new units coming out of production and those already in global circulation.

The International Air Transport Association (IATA) has reported international scheduled traffic results for September 2009 that shows demand for international cargo was 5.4% below September 2008 levels. Load factors for passenger and cargo have returned to pre-crisis levels of 77.1% and 50.8%, respectively.

The apparent year-over-year improvement in demand is misleading. It is largely due to comparisons with an exceptionally weak September 2008, when cargo traffic fell sharply (-7.7%). Seasonally adjusted statistics show a 1.4% fall in cargo volumes for September 2009 compared with August 2009. This reflects the pause seen in the economic recovery in the United States and elsewhere in the past few months.

“It is far too early to call this a recovery. The worst may be over in terms of the fall in demand, but yields continue to be a disaster and costs are rising. The airline industry remains firmly in the red with a fragile business environment,” said Giovanni Bisignani, IATA’s director general and CEO.

Rising costs are also a concern. As airlines adjust capacity to match demand, aircraft are flying fewer hours (-3% for some aircraft types). This is raising non-fuel unit costs. At the same time, oil prices have risen to above US$75 per barrel — considerably higher than the US$43 per barrel level at the start of the year.

Middle Eastern carriers showed the strongest performance of any region with a 3.6% year-on-year improvement. Latin American carriers also reported growth of 1.8%, but this was a decline from the previous month’s growth of 3.9%. Carriers in the Asia-Pacific, Europe, and North America regions recorded improvements over August performance but remained in negative territory at -3.1%, -13%, and -5.0% respectively. Improvements were broadly in line with improved economic activity in each region. African carriers’ cargo operations declined further into negative territory from -5.1% in August to -6.9% in September.

The International Air Transport Association (IATA) has announced international scheduled traffic results for August. Compared to August 2008, freight demand fell by 9.6%; this was, however, an improvement compared to the 11.3% drop in July.

Compared to the low point of December 2008, seasonally adjusted freight demand has improved by 12%, but remains exceptionally weak at 16% below April 2008 levels when the fall in demand began.

All regions saw improved demand conditions in August compared to July. Latin American and Middle Eastern carriers were the only regions to report growth of 3.9% and 3.0%, respectively. Asia Pacific carriers, representing 44% of the global freight market, saw year-on-year demand improve marginally from -9.5% in July to -9.0% in August. North American carriers saw a slightly larger improvement from -14.6% in July to -12.1% in August. This is similar to the -16.2% to -14.5% improvement registered by European carriers. African carriers saw the largest improvement, from -25.9% in July to -5.1% in August. The region’s small market size exaggerates any shifts.

For 2010, IATA’s industry outlook anticipates average international freight growth of 5.5%, compared to an expected full-year decline in 2009 of 14.5%.

The International Air Transport Association (IATA) announced international scheduled traffic results for June showing freight demand down sustantially year over year.

Cargo demand remained weak at 16.5% below June 2008 levels, a moderate improvement, albeit from extremely weak levels, over May, which was 17.4% below 2008 levels. There has been some improvement in world trade and, after adjusting for seasonal fluctuations, freight volumes rose 6% from the low point recorded in December 2008. However, the utilization of air freight capacity on international routes remained very weak (47.3%) in June due to unbalanced trade flows with Asia and some market share loss to ocean transport.

June marked the 13th consecutive month of contracting demand for international air cargo. Despite reaching a bottom in December, improvement has been slowed by high inventory levels and soft demand. At the current pace, IATA projects it will likely take several years before demand returns to early 2008 levels.

Asia-Pacific airlines reported a 15.8% drop in June. Again, this is an improvement compared to the 18.1% fall in May. This reflects improved economic conditions in a number of emerging Asian economies, such as China.

The economic recovery in Europe and North America is being held back as consumers choose to repay debt rather than increase spending. European carriers saw the weakest demand for freight in June at -20.3%. This was a decline in demand from the -19.2% experienced in May. North American carriers reported a 18.6% fall in June demand, relatively unchanged from the 18.8% fall in May.

Middle Eastern carriers reported a -4.2% decline in freight demand, resulting in a 40.2% load factor. African carriers saw demand decline by 20.2%, while Latin American carriers saw demand fall by 14.2%. Freight load factors in these regions were the lowest, at 26.6% and 31.6% respectively.

“These are extremely challenging times for airlines,” stated Giovanni Bisignani, IATA’s Director General and CEO. “There are no signs of an early economic recovery. Other external risks are potentially great, including rising oil prices and the impact of Influenza A (H1N1) on demand. Cash flow is threatened by weak demand, exaggerated by fare discounting. And, after years of cost reduction, the scope for further cuts is limited. Flexibility is critical in finding new sources of capital and new markets. This crisis highlights the need for governments to replace outdated restrictions on ownership and market access with modern commercial freedoms. Quick action is needed.”

The International Air Transport Association (IATA) has revised its airline financial forecast for 2009 to a global loss of US$9 billion. This is nearly double the association’s March estimate of a US$4.7 billion loss, reflecting a rapidly deteriorating revenue environment. IATA has also revised its loss estimate for 2008 to US$10.4 billion from the previous estimate of US$8.5 billion.

“This is the most difficult situation that the industry has faced. After September 11, revenues fell by 7%. It took 3 years to recover lost ground, even on the back of a strong economy. This time we face a 15% drop — a loss of revenues of US$80 billion — in the middle of a global recession. Our future depends on a drastic reshaping by partners, governments, and industry,” said Giovanni Bisignani, IATA’s Director General and CEO in his State of the Industry address at the 65th IATA Annual General Meeting and World Air Transport Summit in Kuala Lumpur.

The recession is the most significant factor affecting the industry’s bottom line. IATA’s revised forecast sees revenues declining an unprecedented 15% (US$80 billion) from US$528 billion in 2008 to US$448 billion in 2009.

Air cargo demand is expected to decline by 17%. In 2009, airlines are forecast to carry 33.3 million tons of freight, compared to 40.1 million tons in 2008. Passenger demand is expected to contract by 8% to 2.06 billion travelers, compared to 2.24 billion in 2008. The revenue impact of falling demand will be further exaggerated by large falls in yields — 11% for cargo and 7% for passenger.

Bisignani noted risks and challenges:

• Fuel bill: The industry fuel bill is forecast to decline by US$59 billion to US$106 billion in 2009. Fuel will account for 23% of operating costs, with an average price of oil at US$56 per barrel. By comparison, the 2008 fuel bill was US$165 billion (31% of costs) at an average price of US$99 per barrel. “The risk that we have seen in recent weeks is that even the slightest glimmer of economic hope sends oil prices higher. Greedy speculation must not hold the global economy hostage. Failure to act by governments would be irresponsible,” Bisignani said.

• Efficiency gains: Over the last decade, labor productivity improved by 71%. Fuel efficiency increased by 20% and load factors rose by 7 percentage points. The downturn in demand could push non-fuel unit costs higher, which cannot be cut in proportion.

• Stronger cash reserves: Cash reserves of US$70 billion (13%) of revenues are much stronger than the 9% reserve that airlines had in 2000. Some of this is being funded by debt or by asset sales.

• Careful capacity management: Global load factors for the first quarter of 2009 are down about 3 percentage points compared to the previous year. This is less than the falls experienced in some recent crises because airlines are better matching capacity to falling demand. Nonetheless, the 4,000 aircraft expected to enter the commercial aviation fleet in the next 3 years will make this an ongoing challenge.

• Strong partnerships: Consolidation within political borders (including Air France-KLM, Lufthansa-Swiss, Delta-Northwest, Cathay Pacific-Dragonair) has created stronger players, but limitations on ownership continue to prevent broader consolidation and partnerships across borders.

Carriers in all regions are expected to report losses in 2009.

• North American carriers are expected to show a loss of US$1.0 billion. This is significantly better than the US$5.1 billion loss in 2008. Limited hedging by U.S. carriers exposed the U.S. industry to rising fuel prices in 2008. This turned into an advantage in 2009 by giving U.S. carriers access to lower spot prices. Early capacity cuts are also helping.

• European carriers are expected to post losses of US$1.8 billion with collapsing demand for premium services in all major markets served by the region’s carriers (intra-Europe, North Atlantic, and Europe to Asia).

• Asia-Pacific carriers will likely post the largest losses, at US$3.3 billion. Japan, the region’s largest market, is in deep recession. The growth markets of China and India are delivering major losses as export-driven demand slows. This is a slightly better performance than the US$3.9 billion that the region’s carriers lost in 2008.

• Middle East carriers, despite strong traffic growth, are expected to see losses deepen to US$1.5 billion. The region’s intercontinental hubs are vulnerable to recessionary impacts in both Europe and Asia.

• Latin American carriers are expected to post a loss of US$900 million, as the impact of the recession in the United States and China weakens demand for the region’s commodities.

• African carriers are expected to see losses of US$500 million. This is the result of a loss of market share combined with the impact of the recession.

The industry crisis is making liberalization even more critical, according to Bisignani. “We cannot manage in these unprecedented times with one hand tied behind our back. Airlines need the same commercial freedoms that every other industry takes for granted-access to global markets and capital,” he said.

In a similar vein, he urged governments to avoid protectionist policies as they stimulate economies. “The forces of de-globalization are gathering strength. World trade is already suffering with a 15% downturn. To build a strong global economy, we must fight hard to keep the world trading,” he said.

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IATA Projects $4.7 Billion Loss for Global Airline Industry Outlook in 2009

On May 27, the International Air Transport Association (IATA) released international traffic data for April showing a 3.1% decline in passenger demand and a 21.7% fall in cargo demand compared to April 2008.

Freight demand appears to have found a solid floor, with a fifth consecutive month at more than 20% below previous year levels.

“We are not out of the woods yet,” said Giovanni Bisignani, IATA’s director general and CEO. “The demand improvements that we saw in April are welcome. But the 3.1% decline in passenger demand still outstripped the 2.5% cutback in capacity. There is no improvement in revenues as yields continue to fall. And freight remains at shockingly low levels. The worst may be over. However, we have not yet seen any signs that recovery is imminent,” said Bisignani.

Air freight continues at very weak levels. International cargo was down 21.7% in April compared to the 2008 level. This is the fifth consecutive month in the -20% range. This sideways progression may indicate that the industry has seen the worst of the economic downturn. Business confidence is improving, but inventories remain high. Until inventories adjust to more normal levels, air freight volumes will likely continue to bounce along the bottom.

Carriers in all regions showed double digit declines. Middle Eastern carriers were the strongest performers, at -11.1%. European, North American, Asia-Pacific, and African carriers saw levels at-23.3%, -22.4%, -22.3% and -18.8%, respectively. Latin American carriers were the worst performers at -24.2%.

“With each day of the recession, the challenges for the air transport industry are mounting. Flexibility has never been more important. But there is not enough of it. Airlines remain constrained by old rules that restrict basic commercial freedoms such as access to markets and capital. Much of the cost base remains out of our control, from volatile fuel prices to monopoly infrastructure charges. And many governments simply don’t understand the need for urgent change. We need a change in mindset. To manage through this ongoing crisis, every player in the air transport value chain must be prepared to drive change,” said Bisignani.

The International Air Transport Association (IATA) has released March data for scheduled international traffic, showing that freight demand was relatively stable, at -21.4% compared to March 2008.

“The global economic crisis continues to reduce demand for international air travel,” said . IATA estimates that international revenues in March will be impacted with a decline of up to 20%. “Airlines cannot adjust capacity to match demand. Load factors have dipped sharply from last year. All of this is hitting revenues hard,” said Bisignani.

Giovanni Bisignani, IATA’s Director General and CEO, saw a “glimmer of hope” in the performance of the air freight sector. For the fourth consecutive month, international cargo demand is hovering around -21% to -24% compared with 2008 as a result of the sharp drop in world trade. “It’s not the end of the recession, but we may have found the floor,” said Bisignani.

IATA attributed at least some of the severity of air freight slump to manufacturers’ seeking to correct large inventory overhangs that emerged in late 2008. The stabilization of the inventory-to-sales ratio has in turn stabilized air freight demand. The organization cautions, however, that recovery depends on purchasing that can deplete the inventory overhang, noting that inventory levels remain high and final demand is weak.

Etihad Crystal Cargo, a division of Etihad Airways, has been awarded Cargo 2000 certification.

Cargo 2000 is an industry initiative supported by the International Air Transport Association (IATA) that aims to implement a new quality management system for the worldwide air cargo industry. The objective is to implement processes, backed by quality standards that are measurable to improve the efficiency of air cargo. It also re-engineers the end-to-end air cargo transportation process from shipper to consignee.

To gain the certification, four of Etihad Crystal Cargo’s global key account customers were tested during the past 6 months at six airports across the world: Abu Dhabi, Paris, Sydney, Frankfurt, Bangkok, and Munich.

“Etihad Crystal Cargo continues to improve the efficiency and services of our operations,” said Des Vertannes, Etihad Airways’ Executive Vice President, Cargo. “Etihad fully embraces IATA’s goals both in Cargo 2000 and e-freight through use of technology and processes to make this possible.”

Etihad Crystal Cargo recently chose Descartes as its Cargo 2000 cargo data management platform provider to support its drive towards gaining certification and the future compliance with business process and automation standards established by IATA.

Etihad Crystal Cargo operates a fleet of three freighter aircraft: two Airbus A300-600s and an MD 11.

The International Air Transport Association (IATA) has announced that all of its member airlines are listed on the IATA Operational Safety Audit (IOSA) registry. The 224 airlines in IATA handle 93% of all scheduled international air traffic.

The IOSA registry, which comprises 308 airlines, was developed in cooperation with airlines and regulators (including FAA, CASA, JAA, Transport Canada). Registration is valid for 2 years from the date at which the audit commenced.

IOSA is focused on 8 areas of operational safety: (1) corporate organization and management systems, (2) flight operations, (3) operational control - flight dispatch, (4) aircraft engineering and maintenance, (5) cabin operations, (6) ground handling, (7) cargo operations and (8) operational security.

“Today is a momentous day for aviation safety - our number one priority,” said IATA’s Director General and CEO Giovanni Bisignani. “IATA membership is now synonymous with best practice in airline safety. This is a great achievement and an important mark of quality for all IATA airlines. This in turn is a reassurance for travelers everywhere of aviation’s serious commitment to safety.”

At the 2006 Annual General Meeting, IOSA was made a condition of IATA membership. By December 31, 2006, member airlines had to complete contractual arrangements for an IOSA audit. By December 31, 2007, all audits needed to be completed. By December 31, 2008, all audit findings had to be closed and the carrier noted on the IOSA registry. Failure to meet any of the deadlines resulted in termination of IATA membership, with effect 90 days after the milestone.

“The vast majority of IATA member airlines completed the IOSA process. We are now working with those airlines not able to make the deadline to bring them up to the high IOSA standard as soon as possible,” said Bisignani.

IOSA standards are available free of charge to any commercial airline. In 2009, IATA plans to spend US$ 8 million to fund IOSA audits for its member airlines. Non-members can undergo an IOSA audit by contracting with one of the eight accredited audit organizations.

The FAA accepts the use of IOSA by American carriers for their code-share arrangements with foreign airlines. Brazil, Chile, Costa Rica, Egypt, Madagascar, Mexico, Panama, Syria, and Turkey are among the countries that have mandated IOSA in national legislation.