Airlines India, Indian Airlines

After the proposed merger of the Indian Airlines with Air India, the cargo arm of Indian Airlines will be hived off to operate as separate entity. The proposed cargo operations will be handled as a division of Indian Airlines till the process of merger is completed. The airline has already taken approval from the Government of India for its cargo operations. India has a huge market for cargo carriers and is growing at a rate of 20 percent per year. Jet Airways and Kingfisher Airlines are also planning to start their cargo operations. with the booming retail sector, the cargo business is expected to grow at a higher pace as the retail companies would use air cargo services to ship their goods to various destinations across the country.

Under the process the airline is planning to convert some of its existing passenger carriers into freighters. To start with, the airline will convert its five Boeing 737 aircrafts into cargo carriers. Some non airline companies are also showing their interests in air cargo business, therefore, the airline companies are making their first moves to encash the upcoming opportunity.

Gulf Air Head of Cargo Des Vertannes will head a team to the bi-annual event carrying a strong message about Gulf Air’s heritage, experience and its current ambition to be a major player in the industry.

‘Gulf Air can boast more than 55 years experience in flying cargo throughout the Middle East region and across the world - more than many of its regional competitors combined,’ says Vertannes.

‘The drive and ambition to innovate and provide the highest levels of customer service are stronger than ever.

‘We will be delivering several key messages to attendees at this event foremost among which will be Gulf Air’s unmatched Middle East network,’ he adds.

‘In addition we will promote our new road feeder services from Muscat to the UAE and from Bahrain to Dammam, Saudi Arabia and new enhancements to our e-commerce offering.’

Vertannes is very bullish about the future of the cargo business in the Middle East and Gulf Air’s ability to grow its business.

‘The Middle East is no different to other parts of the world when it comes to the outlook for cargo,’ he says. ‘The International Air Transport Association (IATA) predicts growth of five to six per cent annually, which is far rosier than the passenger forecasts.’

Freight traffic witnessed double digit growth of 19.9. per cent last year, according to the latest figures from IATA. Freight demand has also grown at a higher rate than the freight capacity in 2005.

Many of the Gulf Co-operation Council (GCC) states are reaping the benefits of high oil prices and experiencing a boom in development. This can only bode well for cargo traffic in and out of the region.

TIACA’s biennial International Air Cargo Forum and Exposition, which rotates between Europe, North America and Asia, is the premier air cargo industry event, where air cargo decision-makers from around world gather to address current industry challenges and opportunities.
Attendees include representatives from the air cargo logistics industry including: airlines, forwarders, airports, ground handlers, all-cargo carriers, motor carriers, customs brokers, logistics, integrators, shippers, multimodal, customs and educational institutions.

–Gemini Air Cargo, Inc. (”Gemini” or the “Company”) announced today that it has successfully emerged from Chapter 11 after having its Plan of Reorganization confirmed by the Bankruptcy Court on July 20, 2006. Under the terms of the restructuring, Gemini’s largest pre-petition lender, Bayside Capital (”Bayside”), agreed to exchange its secured loans for a combination of new indebtedness and majority ownership of the reorganized company. The exchange greatly strengthens Gemini’s balance sheet and positions the Company for strong growth. Bayside has also agreed to provide the Company with an emergence credit facility to ensure Gemini has significant liquidity to achieve its growth plan going forward.

Sam Woodward, Chairman, President and Chief Executive Officer of Gemini, commented, “We are very pleased to have emerged from Chapter 11 in only four months. Through the bankruptcy process, Gemini was able to eliminate approximately $50 million of debt and realign its balance sheet, greatly improving the Company’s competitive position. The entire team is energized and looking forward to continuing our growth. Gemini is excited to have a strong financial partner in Bayside. Their support, combined with the Company’s operational excellence, strong management, and great brand and reputation, enhance our ability to offer a high level of service to our customers.”

John Bolduc, Managing Director of Bayside Capital, commented, “We look forward to supporting Gemini and its management team to grow the business together. We are confident that this support will further enhance the Company’s industry leadership.”

Gemini is an air cargo carrier that provides high quality, worldwide airport-to-airport service to the air freight community and airline customers, primarily under renewable long-term contracts. Gemini supplies its customers with aircraft, crew, maintenance and insurance on a fee-per-block-hour basis. Gemini participates in international and domestic scheduled service and charter markets contracting with international air carriers, airfreight forwarders, shippers and the U.S. Air Mobility Command.

Bayside Capital is a private investment firm which actively invests in the debt and equity of middle market companies that can benefit from operational enhancements, improved access to capital, or balance sheet realignments. Bayside has the experience and resources to help companies quickly resume growth initiatives and improve their strategic position. Bayside Capital is an affiliate of H.I.G. Capital (”H.I.G.”), a leading private equity investment firm specializing in acquisitions and recapitalizations of middle market businesses and venture capital investments. Based in Miami, Florida, and with offices in Atlanta, Boston, and San Francisco, the firm is one of the most active private equity investors in small and medium-sized companies. H.I.G. has committed equity capital in excess of $3 billion to support its investment activities. H.I.G. and affiliated funds have invested in over 50 companies with combined revenues of over $5 billion.

Atlas Air Worldwide Holdings, parent of US cargo carriers Atlas Air and Polar Air Cargo, is poised to conclude a deal for up to 12 Boeing 747-8 Freighters as it begins a major fleet-renewal programme.

The company confirms that it expects to announce a deal shortly for next-generation freighters, but declines to identify the aircraft selected. However, according to industry sources, the all-747 operator has selected the 747-8F and is in final negotiations for a 12-aircraft order. “We can’t comment on speculation like that,” says the airline. Boeing declines to comment.

In a statement accompanying Atlas’s financial results for the three months ending on 30 June, president and chief executive William Flynn says: “We believe that we will provide a more compelling value proposition to our customers with leading-edge freighter aircraft that possess better reliability, range, capacity and fuel efficiency, and improve our commercial-risk profile.”

According to Flight’s ACAS database, Atlas Air and Polar operate 38 747s between them, comprising 21 747 Classics and 17 747-400s. Under the fleet restructuring plan, Atlas Air and Polar have phased out seven older 747s, says Flynn. “Our next step will be a significant investment in next-generation freighter technology, which we hope to announce shortly,” he adds.

Meanwhile, specialist freighter lessor Guggenheim Aviation Partners is understood to be considering a deal with Boeing for a package of 747-8Fs and 777 Freighters, as well as an order for Airbus A330-200 Freighters. The company declines to comment.

LoadAir Cargo, a recently launched air freight operation based in Kuwait, has kick-started its operations by signing a US$494 million order with Boeing for two 747-400 extended range freighters.
The aircraft, scheduled for delivery in early 2009, were signed up at last month’s Farnborough Airshow in the UK.
“This major investment demonstrates our commitment to building a world-class cargo airline business,” said Sheikh Khalifa Ali Al-Sabah, LoadAir Cargo’s chairman.
“The 747-400ERF has demonstrated the ability to perform unmatched cargo operations across the globe, and we look forward to employing our new freighters to offer a competitive solution to customers worldwide,” he said.
Founded in 2005, LoadAir has been granted an exclusive license to carry cargo to and from Kuwait. The freight operator plans to develop local, regional and inter-continental cargo operations that will be managed from Kuwait City.
Lee Monson, Boeing’s vice president of sales for the Middle East and Africa, said: “Two of the things we truly value are
signing on new customers and working together with new operators to help them achieve success. In selecting the 747-400ERF, we are confident that LoadAir joins a group of cargo operators that are flying the demonstrated superior heavy freighters in operation today.”
The 747-400ERF has a maximum take-off weight of 910,000 pounds, a maximum payload of 248,600 pounds and a maximum range of 4970 nautical miles. The airplane’s distinct nose-door helps increase revenue by accommodating high-value outsize shipments, and with the side-door, provides improved efficiency and flexibility.