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Indiaexportnews.com

BA and Iberia to merge cargo units

  02.05.2011    

BA World Cargo (BAWC) and Iberia Cargo will merge cargo units, while retaining separate brands with British Airways replacing its 747-400s with the lease of three of the largest ever freighters in 747-8Fs to increase overall capacity to 60 tons.
The capacity of the merged air cargo units, that will report to the new holding company International Airlines Group (IAG), lags behind the capacity of heavyweight Lufthansa, which aims to add 500 tons capacity by 2013.
With a rate of 11.15 billion tonne-kilometres, Air France-KLM, with its 14 freighters, comes in slightly behind Lufthansa Cargo's 11.46 billion tonne-kilometres. BA and Iberia together post 8.91 billion tonne-kilometres.
The merger combines British Airways' network strength in Asia, North America and Africa with Iberia's air cargo domination in Latin America.
London-based aviation analyst Douglas McNeill said the smaller manufacturing bases of the UK and Spain cannot compete against German strength. "Cargo is an important area for BA for sure, but it's constrained by the nature of the economy it serves."
Britain's air freight segment is also weakened by London's night flight restrictions banning landings and take-offs from 2330 hrs and 0530 hrs. This means it is unable to guarantee next-day delivery, the Shipping Gazette informs.



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