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            january 26, 2020

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Posidonia 2020

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IAM sees high-value exports drive premium airfreight demand


The high value and urgency of many Irish airfreight exports is driving a mini-boom in express and time-definite airfreight services, according to IAM - Ireland’s largest cargo GSSA. 
Dublin-based IAM – which represents 13 leading airlines, and accounts for around 20% of all Irish airfreight exports – has seen steady growth in demand for premium-rated services such as American Airlines’ (AA) Expeditefs product, which promises priority loading and reduced transit times or a full money-back guarantee. AA alone uplifted 29000 kilos on the service from Ireland in March. 
Other IAM carriers are also seeing more business for their premium-rated priority services. Air Canada’s EXI, China Airlines, Austrian Airlines’ XPS, and South African Airways’ SAA Express are typical in offering  later close-outs and priority loading, with some (such as Austrian) also pledging faster transfers at their respective hubs. Although airlines other than AA do not support their priority services with money-back guarantees, their policy is to reduce their rates down to the normal tariff in the rare event of non-performance. 
Total premium-rated traffic is now topping a worthwhile 5% of all IAM business, and still climbing, says IAM MD Ian McCool: “Although we pride ourselves on the ultra-reliability of our express road feeders to gateway airports such as London Heathrow, we can still find ourselves competing for space at peak times with locally-originating traffic. 
“Much of the export traffic from Ireland is now of such high value, and transit times and reliability so critical, that shippers and agents are willing to pay a little extra for total assurance. Our staff’s readiness to offer such solutions is good news for these customers, because it enables them to give their own consignees a solid commitment to delivery times. And for our airline principals, it represents a welcome revenue boost when rates on many destinations are too soft. Everybody wins.”

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