Page 14 - AAA JANUARY - FEBRUARY 2015 Online Magazine

ARGO MARKET

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Delivering the Goods

International airfreight demand for Asia Pacific airlines is growing
By Subodh Agarwal

THERE ARE POSITIVE SIGNS THAT “An important development emerged at
AIR freight demand is returning. The the end of 2014 which, if it continues, bodes
International Air Transport Association well for air freight markets,” Tyler says.
(IATA) reported November 2014 data Air freight is closely linked to world
for global air freight markets showing trade- by value about a third of goods
that demand measured in freight tonne traded internationally are shipped by air.
kilometers (FTK) grew 4.2 per cent Air cargo growth stagnated from 2011
compared to November 2013. as world trade volumes basically grew
Capacity grew by 3.3 per cent over the in tandem with domestic production. A
previous November. Compared to October strong growth trend in cross-border trade
2014, air freight demand expanded by a emerged over the second half of 2014
healthy 0.8 per cent. (while domestic industrial production
“The most significant growth was remained stable) which has had a positive
recorded by carriers in the Asia-Pacific impact on air cargo volumes.
and Middle East regions, at 5.9 per cent “More goods are being traded
and 12.9 per cent, respectively. Carriers internationally and that is fuelling the
in these regions captured the vast growth in air freight. It was clear in
majority of the global increase (93 per November that most of that growth is
cent),” says Tony Tyler, IATA’s Director being captured by carriers in the dynamic
General and CEO. and relatively business-friendly Asia-
Carriers in Asia-Pacific accounted Pacific and Middle East regions. This year
for 55 per cent of the total year-on-year we expect air freight markets to expand by
MASkargo, the freight growth (with a market share of 39.7 per 4.5 per cent, outpacing projected growth
subsidiary of Malaysia cent), while airlines in the Middle East in world trade (4.0 per cent). But that
Airlines, received region contributed a further 38 per cent optimism is tempered by the many macro-
its first A330-200F of growth (with a market share of 13.3 economic and political risks that continue
freighter from Airbus per cent). to impact trade flows,” says Tyler.
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