newstodate.aero
Aug 30, 2009 (newstodate): Lufthansa Cargo's letter to forwarders informing of forthcoming rate increases and further grounding of freighter aircraft is met by understanding in at least come corners of the industry.
-If you are running an airline heading for a 300 mio euro deficit you must understandably do something to remedy the situation. Seen from a freight forwarder's perspective the letter is really not that surprising, says Peter Larsen, DSV Air & Sea Holding VP.
-In itself a 25 percent rates increase from current rock-bottom levels are not really scaring, and we will have to see how the market will react if Lufthansa Cargo really goes through with it. But it obvious that in today's situation the imbalance between supply and demand in the air cargo market has reached, or even over-stepped, a point that calls for action. The problem may be that not all airlines are driven by purely commercial consideration; a number of carriers in regions including the Far East and the Middle East are still heavily influenced by non-commercial factor like national interests, lack of separation between carriers, airports and other infrastructure, and other elements that run counter to fair competition.
-No doubt: the freight is there in the future as well. The question is who will endure and carry it at sustainable rates. There is no alternative to a drastic reduction in capacity, and many inefficient freighters should be grounded permanently to pave the road towards an improved business environment.
-As one of the world's major players, Lufthansa Cargo has sounded the alarm. We will now have to wait and see who will heed the call and take up the gauntlet, says Mr Larsen.
-If you are running an airline heading for a 300 mio euro deficit you must understandably do something to remedy the situation. Seen from a freight forwarder's perspective the letter is really not that surprising, says Peter Larsen, DSV Air & Sea Holding VP.
-In itself a 25 percent rates increase from current rock-bottom levels are not really scaring, and we will have to see how the market will react if Lufthansa Cargo really goes through with it. But it obvious that in today's situation the imbalance between supply and demand in the air cargo market has reached, or even over-stepped, a point that calls for action. The problem may be that not all airlines are driven by purely commercial consideration; a number of carriers in regions including the Far East and the Middle East are still heavily influenced by non-commercial factor like national interests, lack of separation between carriers, airports and other infrastructure, and other elements that run counter to fair competition.
-No doubt: the freight is there in the future as well. The question is who will endure and carry it at sustainable rates. There is no alternative to a drastic reduction in capacity, and many inefficient freighters should be grounded permanently to pave the road towards an improved business environment.
-As one of the world's major players, Lufthansa Cargo has sounded the alarm. We will now have to wait and see who will heed the call and take up the gauntlet, says Mr Larsen.