Eastern Airlines has announced that it is expanding into the cargo market. Eastern has secured the acquisition of 35 Boeing 777 aircraft as feedstock for the first-ever P2F (Passenger to Freighter) conversion of the Boeing 777 aircraft into a true, Class-E cargo aircraft.
The Eastern Boeing 777 Express Freighter is designed to serve the e-commerce express freight market. Accelerated growth of this market has created excess demand for the service.
Subject to STC approvals, the Eastern Boeing 777 Express Freighter will be a fully certified cargo aircraft with a “Class-E” main deck capable of carrying a full load of volumetric express cargo non-stop between Asia and the US. The Eastern Express Freighter will not be subject to the restrictions on cargo commodities that are imposed on conventional passenger aircraft used as freighters.
Due to enter service in the first quarter of 2022, the Eastern Boeing 777 Express Freighter will be the first to the market. The innovative design converts the main deck cabin of the widebody Boeing 777, the -200, -200ER and -300 series, into a true cargo aircraft. This allows the entire volume of the main deck cabin to hold low-density, express freight cargo.
Eastern Air Cargo will offer general cargo sales, cargo charters, ACMI/wet-leasing and dry leasing.
All Nippon Airways (ANA) and Boeing announced the Japanese carrier has finalizes its order for two 777 Freighters valued at $678 million according to list prices.
While ANA is a major operator of the 777 passenger jet, it has grown its cargo operation with the medium-sized 767 Freighter. In adding the 777 Freighter – the world’s largest and longest range twin-engine cargo jet – ANA is expanding its cargo capabilities just as the air freight market keeps growing at historically high rates.
ANA says it plans to fly its new 777 Freighters on international routes, particularly to Asia, China, and North America. With this order, ANA will become the first airline in Japan to operate 777 Freighters.
The delivery is scheduled for 2019.
The 777 Freighter is capable of flying 4,900 nautical miles (9,070 kilometers) with a payload of 112 tons (102 metric tons or 102,000 kg). The airplane’s long range translates into significant savings as fewer stops mean lower landing fees, less congestion, lower cargo handling costs and shorter delivery times.
EVA Air took delivery of its first Boeing 777 freighter, registration B-16781, at the Boeing Everett Delivery Center in Seattle on Wednesday, November 8, 2017. The carrier flew its newest freighter from Paine Field to Taiwan’s Taoyuan International Airport (TPE), departing shortly after delivery and arriving on Thursday, November 9, 2017 (Taipei Time). The airport welcomed Taiwan’s first Boeing 777 freighter with a water cannon ceremony provided with two fire trucks.
EVA plans to put its new Boeing 777 freighter in service on routes between Asia and North America in late November. The airline’s freighter destinations in Asia include Shanghai Pudong, Shenzhen, Chongqing, Hong Kong, Osaka, Singapore, Bangkok, Penang and Hanoi. Its air cargo gateways in North America are Los Angeles, San Francisco, Chicago, Dallas/Fort Worth and Atlanta. EVA now provides airfreight services on 62 routes, including five dedicated cargo gateways, with 35 weekly freighter flights. Shippers and freight forwarders can reserve space at http://www.brcargo.com and track shipments from their smart phones with the EVA Cargo App.
The highly efficient Boeing 777 freighter is the world’s largest twin-engine air cargo carrier. The Boeing Company designed it to replace both the 747-400 and MD11 freighters. Based on the Boeing 777-200LR, the 777 freighter has the range to fly 5,000 nautical miles fully loaded with a maximum capacity of 102 tons. EVA can use it to fly airfreight from Taiwan to any destination in North America with one technical stop in Anchorage, Alaska.
Energy-efficient and environment-friendly, Boeing 777 freighter is expected to effectively reduce carbon emissions compared to the 747-400 freighter. EVA is equipping its Boeing 777 freighters with GE90-115B Turbofan Engines, the same as those used to power its 34 Boeing 777-300ER passenger planes. By using the same engine, EVA will not only reduce maintenance costs but also promote maintenance management efficiencies for its turbofan engines.
Both the 777 and 747-400 freighters accommodate the same-sized pallets and containers, providing the advantages of resource sharing and smoothing the cargo-loading process during EVA’s transition to the newer aircraft. The addition of 777F to the fleet also gives flight crews the flexibility to fly both passenger and cargo models after they have completed EVA’s demanding pilot-training program.
EVA ordered five 777 freighters from the Boeing Company in July 2015 and will take delivery of the additional four by September 2019. As it adds the new freighters, it will successively retire its five remaining 747-400 freighters by the end of 2019. EVA is now operating a fleet of 79 aircraft, including the new freighter.
Emirates SkyCargo, the freight division of Emirates airline, has unveiled a unique decal featuring a rose on one of its Boeing 777F freighter aircraft ahead of Valentine’s Day. The decal, installed at the Emirates Aircraft Appearance Centre in Dubai, is the first of its kind for Emirates SkyCargo and highlights the strong contribution made by the air cargo carrier to the floriculture industry through the transport of fresh flowers across the world.
The airline continued;
One of the first ports of call for the aircraft will be Nairobi in Kenya, where the aircraft will be loaded with a consignment of flowers headed to Amsterdam- the world’s largest flower distribution center.
Transporting flowers around the world
Every day Emirates SkyCargo transports fresh flowers across its global network of over 150 destinations. This includes the flowers transported on board dedicated freighters from major flower exporting countries such as Kenya and Ecuador directly to Amsterdam, as well as flowers transported in the belly hold of the aircraft from countries as far and diverse as India, New Zealand, Vietnam, Zambia, and Ethiopia. Between January and December 2016, Emirates SkyCargo transported over 70,000 tons of fresh flowers around the world.
Although the transportation of flowers is a year-round activity, there is a marked increase in the volume of flowers- in particular roses- being transported around Valentine’s Day which is the single most important annual date for floriculturists worldwide. It is estimated that close to 250 million stems of roses are grown worldwide exclusively to cater to the increased demand for flowers around Valentine’s Day. Emirates SkyCargo adds supplementary cargo capacity every year in the major flower trade lanes to be able to bring the additional volumes of flowers to Aalsmeer – the world’s largest flower auction house in Amsterdam – and from there onwards to other global destinations.
In the week running up to Valentine’s this year, Emirates SkyCargo has operated 4 freighters over and above the daily scheduled freighter service from Nairobi bringing close to an additional 350 tonnes of flowers into Amsterdam. Additional capacity was also deployed to supplement the thrice weekly freighter service between Quito in Ecuador and Amsterdam in order to cater to the demand around Valentine’s Day.
By facilitating the global export of flowers from countries such as Kenya and Ecuador, Emirates SkyCargo also makes an important economic contribution to these regions where the cultivation of flowers is an important local industry. The floriculture industry supports employment for an estimated half a million people in Kenya and over 100,000 people in Ecuador.
Cool Chain and Flowers
The journey of a flower usually begins in a farm where it is harvested by hand. The freshly harvested flowers are then sorted, arranged in bouquets and hand packed into boxes which are then loaded on the aircraft. In order to ensure maximum freshness and shelf life, the temperature in the cargo hold of the aircraft is maintained between 1 and 3 degrees centigrade.
Emirates Skycargo also offers a range of innovative cool chain solutions to ensure that the flowers are maintained at the right temperature from the origin to destination. One such solution is ‘White Cover’- an innovative temperature protection solution that is cost efficient and environmentally friendly. Designed to shield temperature-sensitive cargo from solar heat during transportation, it is water resistant, yet breathable making it ideal for the transport flowers. Handling and loading of the flowers is managed by trained Emirates SkyCargo staff helping maintain product integrity during transportation.
Emirates SkyCargo has been at the forefront of the cargo industry operating a young and modern fleet of 255 aircraft including 15 dedicated freighters- 13 Boeing 777Fs and two Boeing 747-400ERFs. The carrier also offers a number of specialised transportation solutions for customers across different business verticals such as pharmaceuticals and automobile.
Photo: Boeing 777-F1H A6-EFL (msn 42230) is seen at the Dubai Hub.
EVA Air (Taipei) and Boeing (Chicago, Seattle and Charleston) have finalized an order for five 777F Freighters. The order, valued at more than $1.5 billion at list prices, will represent the first 777F Freighters to join EVA Air’s fleet, and the first to be delivered to a Taiwanese airline.
Boeing first announced EVA Air’s intent to order the five 777 Freighters at the 2015 Paris Air Show last month.
The Taiwanese airline plans to use the new freighters to bolster its fleet on trans-Pacific and Asian routes in an effort to meet growing demand in the air cargo market.
EVA Air currently operates more than 35 Boeing airplanes, including 20 777-300 ERs. With 13 additional 777-300 ERs on order – both direct purchased and leased – EVA will become one of the largest 777 operators in the world. The carrier plans to grow its operational twin-aisle fleet to more than 60 airplanes by the end of 2025.
The 777 Freighter is the world’s largest and longest range twin-engine freighter, capable of flying 4,900 nautical miles (9,070 kilometers) with a full payload at general cargo market densities.
Boeing (Chicago, Seattle and Charleston) and Qatar Airways (Doha) announced an order for 10 additional 777-8Xs and four 777 Freighters (below), valued at $4.8 billion at list prices, on the opening day of Paris Air Show 2015.
The 777X builds on the passenger-preferred and market-leading 777, as well as offering more market coverage and revenue capability than the competition. The 777X will include new engines, an all-new composite wing and will leverage technologies from the 787 Dreamliner.
The 777X family includes the 777-8X and the 777-9X, both designed to respond to market needs and customer preferences.
According to Boeing, “the 777-9X will be 12 percent more fuel efficient than the competition, necessary in today’s competitive environment. The 777-8X is 5 percent more efficient than its competitor at all ranges while providing for new network opportunities. Design of the 777X is underway and production is set to begin in 2017, with first delivery targeted for 2020. With this order, the 777X has accumulated 320 orders and commitments from six customers worldwide.”
Copyright Photo below:
Qatar Airways aircraft slide show: TMK Photography/AirlinersGallery.com. Boeing 777-FDZ A7-BFB (msn 36100) is pictured at Toronto (Pearson).
Boeing (Chicago, Seattle and Charleston) announced today at the Paris Air Show that EVA Air (EVA Airways) (Taipei) intends to purchase five 777F Freighters. The commitment, valued at more than $1.5 billion at list prices, represents the first 777 Freighters to join EVA’s fleet and will be posted to Boeing’s Orders & Deliveries website once finalized.
The Taiwanese airline plans to use the new freighters to bolster its fleet in an effort to meet growing demand in the air cargo market.
EVA Airways currently operates more than 35 Boeing airplanes in its fleet, including 20 777-300 ERs. EVA is one of the world’s leading 777-300 ER operators with unfilled orders for 14 777-300 ERs – both direct purchased and leased. The carrier plans to grow its operational twin-aisle fleet to more than 60 airplanes by the end of 2025.
The Emirates Group (Emirates Airline and Emirates SkyCargo) (Dubai) has announced its 27th consecutive year of profit. The profit for the fiscal year was $1.5 billion, up 34 percent from the previous year. The airline issued this statement:
The Emirates Group announced its 27th consecutive year of profit and steady growth across the company, ending the year in a strong position despite the many global and operational challenges during this period. The financial year ending March 31, 2015 also marked the achievement of new capacity milestones at both Emirates and dnata, as the Group continued to expand its global footprint, and strengthen its business through strategic investments.
Released in its 2014-15 Annual Report the Emirates Group posted an AED 5.5 billion (US$1.5 billion) profit, up 34% from last year. The Group’s revenue reached AED 96.5 billion (US$26.3 billion), an increase of 10% over last year’s results, and the Group’s cash balance remained strong, growing to AED 20.0 billion (US$5.5 billion).
“2014-15 was a turbulent year for aviation. The fall in oil prices provided cost relief in the second half of our financial year, however it did not offset the hit to our profitability caused by significant currency fluctuations, nor the hit to our revenue from operational adjustments in addressing the Ebola outbreak, armed conflicts in several regions, and the 80-day runway upgrading works at Dubai International airport (DXB). Achieving our 27th consecutive year of profit and one of our best performances to date, is testimony to the strength of our brands and business fundamentals, as well as the dedication and talent of our workforce,” said His Highness (H.H.) Sheikh Ahmed bin Saeed Al Maktoum, Chairman and Chief Executive, Emirates Airline and Group.
The strong rise of the US dollar against currencies in many of Emirates’ and dnata’s key markets had an AED 1.5 billion (US$412 million) impact to the Group’s bottom line, while the 80-day disruption at DXB had an estimated impact of AED 1.7 billion (US$467 million) on Group revenue.
“Every year brings a new set of challenges. In addressing these, we are always guided by the best interest of our people, our customers, and our long-term goals. As a Group, we keep a close eye on our top and bottom lines, but we never take our foot off the gas pedal when it comes to investing to enhance our business performance, and looking after our people. In 2014-15, the Group collectively invested over AED 20.2 billion (US$5.5 billion) in new aircraft and equipment, modern facilities, the latest technologies, and staff initiatives. This was the second highest amount ever in one financial year after last year’s record investment.”
The Group’s employee base across its more than 80 subsidiaries and companies increased by 11% to over 84,000-strong representing over 160 different nationalities.
“Looking ahead, the ongoing uncertainty for many currencies and economic markets around the world will continue to pose a challenge, as will the looming threat of protectionism in some countries. However, we move into the new financial year with confidence, and a strong foundation for continued profitability with our strong balance sheet, solid track record, diverse global portfolio, and international talent pool,” said Sheikh Ahmed. “We will continue on our journey of steady and rational growth, and work even harder to meet and exceed our customers’ expectations.”
In line with the overall profit increase, the Group declared a dividend of AED 2.6 billion (US$ 700 million) to the Investment Corporation of Dubai.
In 2014-15, Emirates increased capacity by 4.0 billion Available Ton Kilometers (ATKMs). For the first time in the airline’s history, Emirates’ total passenger and cargo capacity crossed the 50 billion mark, to 50.8 billion ATKMs at the end of the financial year, cementing its position as the world’s largest international airline.
Emirates received 24 new aircraft during the year, including 12 A380s, ten Boeing 777-300 ERs and two Boeing 777Fs, bringing its total fleet count to 231. At the same time 10 aircraft were phased out, taking the average fleet age to 75 months or approximately half the industry average of 140 months. The airline remains the world’s largest operator of the Boeing 777 and A380 – both aircraft being amongst the most modern and efficient wide-bodied jets in the sky today.
With the delivery of new aircraft, Emirates launched five new passenger destinations: Abuja, Brussels, Budapest, Chicago, Oslo and four new additional freighter-only destinations: Atlanta, Basel, Mexico City, and Ouagadougou. It also added services and capacity to 34 cities on its existing route network across Africa, Asia, Europe, the Middle East, and North America, offering customers even greater choice and connectivity.
The 80-day runway closure at DXB necessitated the grounding of 19 Emirates aircraft, reducing the airline’s capacity by 9%, and causing the reduction of services to 41 destinations over this period. The estimated impact on airline revenue was AED 1.6 billion (US$ 436 million). The Ebola outbreak in Africa prompted route suspensions and increased health and safety screenings at other ports; and geopolitics resulted in the suspension of services and re-routing of flight paths to avoid overflying conflict zones.
Despite these challenges, Emirates revenue reached a new record of AED 88.8 billion (US$24.2 billion). The average price of jet fuel dropped significantly during the second half of the financial year and has supported Emirates’ bottom line improvement. Emirates’ fuel bill decreased by 7% over last year to AED 28.7 billion (US$7.8 billion). Fuel is now 35% of operating costs, down by 4%pts compared to last year. However, fuel remained the biggest cost component for the airline. Total operating costs increased by 6%, compared to a revenue increase of 7% over the 2013-14 financial year.
The airline successfully managed increased competitive pressure across all markets to record a profit of AED 4.6 billion (US$1.2 billion), an increase of 40% over last year’s results, and a healthy profit margin of 5.1%, the strongest margin since 2010-11.
Carrying a record 49.3 million passengers, up 11% from last year, Emirates managed to achieve a Passenger Seat Factor of 79.6%, an improvement compared with last year’s results (79.4%) in spite of a 9% increase in seat capacity byAvailable Seat Kilometres (ASKMs). This highlights thestrong consumer desire to fly on Emirates’ state-of-the-art aircraft, and via efficient routings through its Dubai hub.
Under pressure from the weakening of all major currencies against the USD, passenger yield dropped to 29.7 fils (8.1 US cents) per Revenue Passenger Kilometre (RPKM).
Emirates also improved its premium seat factor despite lingering economic uncertainty and strong competition in many markets. Premium and overall seat factor for the airline’s flagshipA380aircraft outperformed the network, underscoring the popularity of Emirates’ premium and A380 product amongst passengers. At 31 March 2015, Emirates had 59 A380 aircraft in its fleet, serving one out of every four destinations on its passenger network.
To fund its fleet growth, Emirates raised a total of AED 18.7 billion (US$5.1 billion), using a variety of financing structures. Emirates achieved a major landmark when it closed the first ever Japanese Operating Lease on an A380. It also entered into a Japanese Operating Lease with a Call Option (JOLCO) with respect to one A380-800 aircraft to expand the investor base of the A380 into the Japanese market. During the year, Emirates also successfully closed sale and leaseback transactions for five B777-300ERs and one B777-200ER aircraft.
The financing highlight of the year was the successful issuance of a UK Export Finance (UKEF) guaranteed Sukuk bond of AED 3.4 billion (US$913 million) to fund the acquisition of four A380 aircraft to be delivered in 2015. This deal marked the world’s first Sukuk financing supported by UKEF and the largest ever capital markets offering in the aviation space with an Export Credit Agency guarantee.
These deals align with Emirates’ strategy to seek diverse financing sources, and underscore its sound financials and the strong investor confidence in the airline’s business model. Emirates closed the financial year with a healthy AED 13.3 billion (US$3.6 billion) cash flow from operating activities.
Revenue generated from across Emirates’ six regions continues to be well balanced, with no region contributing more than 30% of overall revenues. Europe is the highest revenue contributing region with AED 25.2 billion (US$6.9 billion), up 7% from 2013-14. East Asia and Australasia follows closely with an increase of 3% and AED 24.6 billion (US$6.7 billion). The highest growth with 20% was recorded for the Americas to AED 11.0 billion (US$3.0 billion). Gulf and Middle East revenue increased 4% to AED 8.6 billion (US$2.3 billion).
Across the rest of the globe Emirates saw strong revenue increases from West Asia and Indian Ocean up 11% to AED 9.2 billion (US$ 2.5 billion) and Africa with AED 8.1 billion (US$2.2 billion) in revenue, up 5%.
In line with its customer-focused proposition, Emirates invested over AED 73 million (US$20 million) last year to equip its fleet with free Wi-Fi. By March 31, 2015, 107 of its Airbus A380 and Boeing 777 aircraft offered Wi-Fi services. The airline also opened new dedicated airport lounges in Glasgow and Los Angeles, taking to 37 the number of dedicated Emirates Lounges across the world. Emirates also opened a new 300-seat contact centre in Budapest to support its growth and supplement its language and response capability.
Looking forward to 2015-16, Emirates has to date announced two new routes including Denpasar and Orlando aside from a number of capacity upgrades to existing destinations.
The 2014-15 financial year has been a strong one for Emirates SkyCargo who reported a revenue of AED 12.3 billion (US$ 3.4 billion), a very remarkable 9% increase over last year. Contributing 15% of the airline’s total transport revenue Emirates SkyCargo continues to play an integral role in the company’s expanding operations.
Emirates SkyCargo’s tonnage strongly increased by 6% to reach 2.4 million tonnes in an airfreight market that remained challenging with fast-changing demand patterns. Emirates SkyCargo’s performance highlights its ability to grow revenues against the industry norm. This year, freight yield per Freight Tonne Kilometre (FTKM) decreased by 1%, and was also impacted by the weakening of major currencies.
On May 1, 2014, Emirates SkyCargo marked a major milestone with the move of its freighter operations to its new cargo terminal at Dubai World Central’s Al Maktoum International airport (DWC). Capable of handling 700,000 tons of cargo annually, the new terminal at DWC is equipped with state-of-the-art technology and has the potential for further expansion to handle 1 million tonnes annually, positioning the business for future growth.
At the end of the financial year, the Emirates SkyCargo freighter fleet had grown to 14 aircraft – 12 Boeing 777Fs, and 2 Boeing 747-400Fs.
Emirates’ hotels recorded revenue of AED 693 million (US$ 189 million), an impressive increase of 23% over last year. This positive development was supported by the opening of the second tower of the JW Marriott Marquis Hotel in Dubai, the world’s tallest hotel.
In other news, Emirates SkyCargo, the freight division of Emirates, has announced that Columbus, the State Capital of Ohio in the United States, will join its global freighter network with the launch of a weekly service to Rickenbacker International Airport from May 27, 2015.
The new freighter service to America’s 15th largest city will become Emirates SkyCargo’s 48th destination in its worldwide freighter network and sixth in the US. The announcement was made on the side lines of the 7th Air Cargo Europe Exhibition and Conference taking place in Munich, Germany, where Emirates SkyCargo is showcasing its products and services.
The flight will be operated by an Emirates SkyCargo Boeing 777 Freighter, which has the capacity to carry just over 100 tonnes of cargo, and with its main deck cargo door being one of the widest of any aircraft, enables it to uplift outsized cargo and carry larger consignments.
Top Copyright Photo: SPA/AirlinersGallery.com. Emirates added an even dozen new Airbus A380s during the year. A380-861 A6-EEX (msn 154) departs from Heathrow Airport in London.
Emirates aircraft slide show:
Bottom Copyright Photo: Ton Jochems/AirlinersGallery.com. Emirates SkyCargo is coming to Columbus, Ohio starting on May 27. Boeing 777-F1H A6-EFL (msn 42230) taxies at Amsterdam.
Emirates SkyCargo (Dubai), the freight division of Emirates (Dubai), is set to expand its United States cargo network to 11 destinations, when the airline launches a daily service to Orlando, Florida from September 1, 2015.
The Dubai – Orlando route will be served by a Boeing 777-200 LR aircraft, which has a belly-hold capacity of up to 17 tons of cargo per flight. Emirates SkyCargo also has belly-hold cargo services to San Francisco, Seattle/Tacoma, Washington D.C., Boston, Dallas/Fort Worth, New York (JFK), Los Angeles, Chicago (O’Hare) and Houston (Bush Intercontinental), with the latter four cities also forming part of the air cargo carrier’s United States freighter network, along with Atlanta.
Emirates flight EK 219 will depart Dubai International Airport at 0350hrs local time and arrive at Orlando International Airport Terminal at 1140hrs local time. The return flight, EK 220 will depart Orlando International at 1420hrs and arrive into Dubai at 1230hrs the following day.
Copyright Photo: Ton Jochems/AirlinersGallery.com. Emirates SkyCargo (Emirates) Boeing 777-F1H A6-EFI (msn 35609) taxies at Amsterdam.
Boeing (Chicago, Seattle and Charleston) and Korean Air (Seoul) have finalized an order for five 777 Freighters. Korean Air currently operates an all-Boeing freighter fleet of 26 airplanes that includes 17 747-400 Freighters, five 747-8 Freighters and four 777 Freighters.
Korea’s flag carrier currently operates 86 Boeing passenger airplanes and has unfilled orders for nearly 40 additional airplanes, including 12 777-300ERs, 10 747-8 Intercontinentals, 10 787-9 Dreamliners, two 747-8 Freighters and six 777 Freighters.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-FB5 HL8251 (msn 37639) is beautifully captured landing at Anchorage.