Emirates SkyCargo losing $2m per day

Emirates SkyCargo is suffering revenue losses of up to $2 million (Dh7.34m) a day with around 4,000 tonnes of Europe-bound cargo being delayed. A senior official told Emirates Business yesterday the cargo airline was in no position to accept cargo for shipment due to the lack of warehousing capacity.

Ram Menen, Divisional Senior Vice-President, Cargo, Emirates, said: "Since Thursday, April 15, Emirates SkyCargo has not accepted any perishables or time-sensitive shipments. And at many airports affected [by the volcanic ash cloud] in Europe, it is now unable to accept any cargo for shipment due to a lack of warehouse capacity.

"This is a very significant disruption for us and our customers, and is currently costing Emirates SkyCargo an approximate $2m a day in lost revenue," Menen said. Emirates SkyCargo normally transports more than 800 tonnes of cargo a day into Europe in the belly hold of passenger aircraft and on freighter aircraft.

"We have been communicating with our customers daily since last Thursday (April 15) and updating the status of flights on our website several times a day. We have advised customers with cargo bound for Europe to contact their local offices before delivering cargo at our respective airports.

"At this point, Emirates flights to and from the UK and many points in Western Europe, including freighter services to Amsterdam and Gothenburg, have been cancelled due to the closure of their respective airspaces. Our flights to Rome, Venice, Nice, Paris, Athens, Larnaca, Istanbul, Vienna, Zaragoza and Moscow continue to operate," he added.

Menen said that within Europe, cargo was being transported by road. "We are transporting cargo by road within Europe wherever possible and will be operating additional freighter services into unaffected European airports, where possible."

Menen said once the service restarts priority would be given to perishable consignments. "We are keen to restart operations as soon as possible, and wish to reassure our customers that we are looking at ways to minimise the disruption.

"As soon as operations resume, shipments will be rebooked on available services with priority given to perishable consignments. As there will be a significant backlog, it will be a number of days before Emirates SkyCargo is in a position to accept fresh bookings. We appreciate the patience and understanding of our customers at this difficult time."

Meanwhile, Abu Dhabi Airports Company (Adac) said Abu Dhabi International Airport's 40,000 square metres of warehouse and storage facilities were coping more than adequately in relation to the few aircraft awaiting approval to fly to European destinations. "Currently, there are no issues related to perishable cargo at the airport," said Huraiz bin Huraiz, Chief Commercial Officer, Adac.

ABU DHABI CARGO UP 22.2% IN Q1

Air cargo movement from Abu Dhabi grew by 23.4 per cent in March and is expected to increase in the coming months.

During the first quarter of 2010, the airport saw cargo movement go up by 22.2 per cent compared to the same period last year.

Huraiz bin Huraiz, Chief Commercial Officer, Abu Dhabi Airports Company (Adac) said yesterday that double-digit growth would continue throughout 2010.

"Cargo growth is expected to continue throughout 2010. There is confidence that double-digit growth, for the whole 12 months, is possible," said Huraiz.

In March, the airport saw a movement of 37,500 tonnes of cargo. "The continuing expansion of Etihad Airways' network and the carrier now operating more freighters than the year before, are significant contributors to the strong growth in cargo figures in Q1 2010," he said.

During the first quarter, about 100,378 tonnes of cargo were transported compared to 82,146 tonnes in 2009 and 81,651 tonnes in 2008.

"The flow of traffic from Asia to Europe, and vice-versa, remains strong and is growing. This is driving cargo and passenger flow through Abu Dhabi International Airport. The upturn in the world economy has also [helped growth]," he said.

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