Wirraway
8th Jul 2004, 17:22
Fri "The Australian"
Qantas adds freight to Asian foray
By Steve Creedy, Aviation writer
July 09, 2004
QANTAS is adding another prong to its push into the intra-Asia market with a joint-venture freight operation based in Bangkok.
The airline is adding to its recently launched Asian-US freighter operation by taking a 49 per cent stake in Thai Air Cargo with local company CTI Holding Co.
The investment is the airline's second joint venture in the region as it seeks new opportunities for expansion outside Australia.
It is also a 49 per cent partner in a Singapore-based low-cost carrier expected to start intra-Asia services later this year.
Qantas executive general manager associated business Denis Adams said the new company would start small with an investment by Qantas of "a couple of million".
It would begin with one leased aircraft, probably an L1011, hubbing in Bangkok to India, Singapore, Shanghai and Hong Kong.
An executive from the Qantas freight division in Sydney, Stuart Hayman, was transferring to Bangkok to become the new company's general manager.
"The beauty of it for us is that it allows us access to intra-Asia traffic rights," Mr Adams said.
"One of the disadvantages of being down here is that we're at the end of the line, but if we can get into developing markets in Asia it will give us a broader base for freight operations."
Qantas recently made its first foray into the dedicated Asian freight market with a twice-weekly run between Sydney, Singapore, Shanghai and Chicago.
It is starting the new company at an opportune time, with recent International Air Transport Association figures showing freight in the Asia-Pacific second only to the Middle East in terms of growth.
The IATA figures show freight tonne-kilometres for May were 20.2 per cent up on last year and 28.1 per cent ahead of 2000, seen as the last "normal" year for the aviation industry.
Mr Adams said the service was going well, with loadings out of Shanghai consistently above the 100-tonne mark.
He said the new company would link up well with the Qantas freighter, as well as with the airline's passenger operations in Bangkok, Singapore and Hong Kong.
"I think the growth potential is significant," Mr Adams said. "We are proceeding prudently ... the one aircraft through Shanghai was our first investment in pure freighter operations internationally and we will start off with one aircraft (in Bangkok).
"The numbers look good and if it proves to be the case, and we fill it and it operates profitably, we will be looking to add to the fleet and add to the destinations that we operate to, still using Bangkok as the hub."
Mr Adams, who also runs Qantas Holidays, said the airline's holiday unit was performing well. He said all markets looked quite solid, the international market enjoying good growth after last year's SARS epidemic and domestic also holding up well.
"We're still getting growth in both markets," he said.
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Qantas adds freight to Asian foray
By Steve Creedy, Aviation writer
July 09, 2004
QANTAS is adding another prong to its push into the intra-Asia market with a joint-venture freight operation based in Bangkok.
The airline is adding to its recently launched Asian-US freighter operation by taking a 49 per cent stake in Thai Air Cargo with local company CTI Holding Co.
The investment is the airline's second joint venture in the region as it seeks new opportunities for expansion outside Australia.
It is also a 49 per cent partner in a Singapore-based low-cost carrier expected to start intra-Asia services later this year.
Qantas executive general manager associated business Denis Adams said the new company would start small with an investment by Qantas of "a couple of million".
It would begin with one leased aircraft, probably an L1011, hubbing in Bangkok to India, Singapore, Shanghai and Hong Kong.
An executive from the Qantas freight division in Sydney, Stuart Hayman, was transferring to Bangkok to become the new company's general manager.
"The beauty of it for us is that it allows us access to intra-Asia traffic rights," Mr Adams said.
"One of the disadvantages of being down here is that we're at the end of the line, but if we can get into developing markets in Asia it will give us a broader base for freight operations."
Qantas recently made its first foray into the dedicated Asian freight market with a twice-weekly run between Sydney, Singapore, Shanghai and Chicago.
It is starting the new company at an opportune time, with recent International Air Transport Association figures showing freight in the Asia-Pacific second only to the Middle East in terms of growth.
The IATA figures show freight tonne-kilometres for May were 20.2 per cent up on last year and 28.1 per cent ahead of 2000, seen as the last "normal" year for the aviation industry.
Mr Adams said the service was going well, with loadings out of Shanghai consistently above the 100-tonne mark.
He said the new company would link up well with the Qantas freighter, as well as with the airline's passenger operations in Bangkok, Singapore and Hong Kong.
"I think the growth potential is significant," Mr Adams said. "We are proceeding prudently ... the one aircraft through Shanghai was our first investment in pure freighter operations internationally and we will start off with one aircraft (in Bangkok).
"The numbers look good and if it proves to be the case, and we fill it and it operates profitably, we will be looking to add to the fleet and add to the destinations that we operate to, still using Bangkok as the hub."
Mr Adams, who also runs Qantas Holidays, said the airline's holiday unit was performing well. He said all markets looked quite solid, the international market enjoying good growth after last year's SARS epidemic and domestic also holding up well.
"We're still getting growth in both markets," he said.
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