August 2002         Year 3 - Number 24

 
Air Market
on line

 
 

 

 
 

In spite of everything

 

 

The segment of airfreight continues to grow in Brazil, exceeding the most conservative projections imagined early this year. An analysis by Robert Zwerdling, published in the Brazilian journal FLAP Internacional.

 

The companies specializing in airfreight transport are celebrating.

When the world economy slipped back after the 11 September attempts against the United States, business continued growing in Latin America, particularly in a northbound direction, to the US and Canada. Thanks to the policy of incentives for exports implemented by the Brazilian federal government, no airline failed to register a growth that exceeded expectations in terms of airfreight shipments. As an average, the results surpassed the objectives by 20%, including the Cargo Terminal of Infraero in Guarulhos (Teca), which broke all records in the first four months of the current year. “We beat the historic record for the airport in March, with an exports movement of 10,233 tons,” recalls Nelson Rodríguez Farías, logistics manager for Infraero in Guarulhos. The dollar stampede over the real also contributed to the significant increase in exports.

The volume of airfreight grows despite bureaucratic obstacles. “The customs system is at least 20 years behind in relation to the first-world countries,” affirms Deonisio Petry, director and president of Figeeall (Brazilian Agency of Imports and Exports). The officer underlines the fact that the system made a fair evolution in the last few years but needs to be improved further.

 

Absa – Strategic agreements

 

Absa (Aerolineass Brasileras S.A.) keeps its base of operations at the International Airport of Viracopos, in Campinas (SP); it operates two freight planes: a DC-8-61F and a Boeing 767-300F, the latter having joined the fleet early this year. In 2001, Absa carried 11,000 tons, that is to say 30% of the import cargo operated in Viracopos. Besides, it moved 69,000 tons of cargo belonging to third parties, invoicing almost 20 million reales (some 6.3 million dollars). “We work together with foreign firms and that is very advantageous,” stresses Norberto Jochmann, Absa president. The airline operates flights in code share with the North American Florida West, with MAS Air, from Mexico, and with LanChile Cargo, which allows it to reach all the countries in America with the utmost regularity and productivity. Absa links Campinas with Miami, with a stopover in Santiago de Chile and carries fruit and fish between Chile and the US. In the same way, it reaches Lima and Bogota with flowers and asparagus for the North American market.

At the beginning of the year, Absa was authorized by the DAC to operate three weekly frequencies to France. “We must begin the operation with one flight, since we only have one Boeing 767 in our fleet,” explains Jochmann. But Absa intends to incorporate a 767-300F in November to inaugurate a circular line between Viracopos, Natal (CRN) and Miami, in response to a request from four deep-sea fishing processing factories whose wish is to export to the US.

 

Air France Cargo – Dividing space with Africa

 

According to its balance, the company invoiced 35 million dollars in the Brazilian market, carrying 20,000 tons of cargo. In 2002, it intends to increase business by 10%, although it will have to overcome some difficulties, such as the decrease in available space on the Boeing 747-200 carriers reaching the International Airport of Sao Paulo (Guarulhos) twice a week. Due to the deficiencies of Air Afrique and the Belgian Sabena, and the suspension of some lines of the old SwissAir, one of the most affected continents was Africa, which lost its connecting flights to Europe.

 

British Cargo – Exporting perishable goods

 

The company operates daily passenger flights with Boeing 777-200s between Heathrow in London and Sao Paulo and Rio de Janeiro. The available hold space allowed it to invoice 4.2 million dollars in 2001. “This year, our aim is to reach 4.8 million dollars,” announces Gunther Wernick, sales manager for British Cargo in Brazil. The Boeing 777 planes carry an average of 25 tons of airfreight per flight.

 

FedEx – Toward more agile exports

 

The great business news introduced in the Brazilian market at the end of 2001 was WEM (Web Export Manager), an IT system that makes the process of express cargo exports more agile. “Its great advantage is the fact that it is in interface with the Federal Government Brazilian Exports System (Siscomex),” points out Guilherme Gatti, marketing director for FedEx in South America. The company keeps up weekly flights between Campinas and Memphis, Tennessee with DC-10-30F aircraft and 5 frequencies between Viracopos, Buenos Aires and Santiago de Chile with Boeing 717-200F planes. Without divulging the Brazilian market figures, the company says it has surpassed its goals for 2001 and hopes to grow by 30% in 2002.

 

Figwall – A weighty carrier

 

Figwall International Carriers is not an airfreight company with its own planes. However, it is responsible for the operation of numerous flights in Brazil and uses the largest freight planes in the world: Antonov 124-200 and Boeing 747-400F.

Despite the economic turbulence of the past year, the company registered a 12% growth, both in exports and imports and it moved 50 million dollars in international freight.

“We are planning a growth of 5% for this year,” asserts Petry

 

Lufthansa – Internet business

 

The German airline operated 17,000 tons in exports and 20,000 in imports in the Brazilian market during 2001. It managed to achieve its sales goals despite the effect of the terrorist attacks in US. “Since we had already been implementing a security system for some time, there was no need for further preventive measures against terrorism,” explains Fernando Fetter, sales manager for Lufthansa Cargo in Brazil. The company offers 2 AirBus A340-300s that join Guarulhos (SP) and Frankfurt daily, besides other exclusively cargo flights operated on MD-11F planes between Viracopos (SP) and Frankfurt.

This year, Lufthansa Cargo hopes to reach a similar production to that of 2001. The good results registered in the first quarter contribute to a growth of 5%. Another interesting move was the launching of an online booking system (www.lufthansa-cargo.com/ebbooking) for exports of air cargo.

 

Polar Air Cargo – Flying with a heavyweight

 

The North American Polar Air Cargo continues to see Brazil as an attractive market for its business in Latin America, especially the northbound flights (Brazil-US) that include a stopover in Santiago de Chile for loading fruit. It has 4 weekly frequencies, using B747-400F aircraft and taking off from Chicago, Illinois, via Miami and Manaus, to reach Campinas.

 

Skymaster – Increased offer with DC-8

 

Skymaster operates five Boeing 707-320 carriers serving the lines contracted by the post and some flights chartered by the Central Bank of Brazil monthly.

The airline also hopes to sell space to Variglog and TAM Cargo on flights between Campinas and Manaus and on some international destinations, such as Caracas and Santiago de Chile. In 2001, Skymaster invoiced 90 million reales (28.4 million dollars) and carried 100,000 tons.

 

Skylift – On any terrain

 

Skylift, created in 1995 to back the parachuting activity in Campinas and offer a new service for the transport of airfreight to regions of difficult access, recently bought a Cessna 207 “Soloy” turboprop that will attend to the needs of skydiving teams.

 

TAF – Resources for cargo

 

TAF (Fortaleza Airlines) will be receiving 2 Boeing 737-200F planes from Argentina and Malaysia to increase its two night-shift postal network services. The company left off the operation of regional passenger flights at the end of 2000 under the pressure of the competitive national companies, and decided to focus its activity on airfreight transport. It received a Boeing 727-200F and as a result obtained a postal contract between Fortaleza, Sao Luis, Teresina, Brasilia and Rio de Janeiro. It also counts on 3 Cessna Caravans and 2 EMB-110 Bandeirantes to connect with the neighboring states of Rio Grande, del Norte and Pernambuco.

 

TAM Cargo – New express service

 

TAM Cargo has just launched a new express service with which it hopes to enlarge its door-to-door business. The company is investing 7 millions reales (2.2 million dollars) for collection and shipping of goods.

 

Total Cargo – Growing with the mail service

 

Regular flights take off from its operating base at the Pampulha airport in Belo Horizonte to the towns of Montes Claros and Ipatinga, using ATR-42 aircraft. At present, the company has 2 Boeing 727-200F planes and is expecting the arrival of a third aircraft of the same type. Total moved 38,974 tons of cargo in 2001.

 

TCB – A welcome agreement

 

TCB (Brazilian Charter Transport) took up its flights again in August 2001 in a joint operation with Beta for the transport of the night-shift mail network and general air cargo. Last year, it carried 20,000 tons of freight. At present, it is operating one DC-8-52, is about to receive a DC-8-54, and hopes to incorporate a DC-8 of the 60 series by the end of the year. “We can start an international frequency to the US with this aircraft,” points out Claudio Séller, TCB president.

 

United Cargo – Unexpected growth

 

Though it was one of the main victims of the 11 September terrorist attack, United Airlines obtained satisfactory results, at least in the airfreight segment. It invoiced 14.5 million dollars, which represents a growth of 23% over 2000. It operated 16,000 tons of freight, exceeding by 9.5% the foreseen goal for 2001. The first quarter of the current year it invoiced 3.4 million dollars in exports, surpassing by 18.9% the foreseen goal for the Brazilian market. After canceling the Sao Paulo-New York flight, the company is now operating 3 frequencies between Sao Paulo and Miami and Chicago with Boeing 777-200 and Rio de Janeiro-Miami with a Boeing 767-300ER.

 

UPS Air Cargo – Investing in Latin America

 

United Parcel services announced the purchase of Challenge Air Cargo in 2000 and became the largest carrier of express cargo in Latin America, offering 120 weekly flights to 17 cities in 13 countries. In Brazil, besides operating 2 weekly flights with Boeing 767-300Fs and 3 frequencies with Boeing 757-200Fs between Miami and Viracopos, UPS expanded its operations to several Brazilian cities, through an agreement with Express Mercurio, the largest overland cargo carrier in Brazil.

 

Variglog – MD-11F in November

 

The cargo segment created as of Varig Cargo began 2002 with some good news. It took up again its weekly operation between Belem and Miami to carry out the export of fresh fish to the US and Canada. The cargo will be 2000 tons/year and the business volume will be 5 million dollars. In November, it will start operating 2 MD-11 carriers with the capacity to carry 85 tons of freight.

Varig invoiced 1.1 billion reales in 2001.

 

Vaspex – Staking on franchises

 

The VASP cargo branch managed to grow by 4.5% in 2001 with an invoicing of 144 million reales. The growth in the first quarter in 2002 is 13% on the volume of carried cargo in relation to the same period last year. “Everything points at our surpassing our foreseen growth goal for this year, which was 20%,” emphasizes Ronan Hudson, VASP cargo director. Today Vaspex has a network of 250 sales points in the whole of Brazil and during the course of this year, it should open another hundred franchises. This is the direct result of a campaign tending to bring down the cost of the equipment used for the marketing of services.