UNITED AIRLINES DISCOVERS LOSE BOLTS ON 737-9

• 09 JAN 2024- United Airlines found bolts on some 737 Max 9 aircraft that needed tightening during inspections.

  • The FAA grounded 171 Boeing 737 Max 9 planes after a door plug flew off an Alaska Airlines flight.
  • United cancelled around 200 flights as inspections continued, finding installation issues like loose bolts.
  • The FAA ordered enhanced inspections of door components and fasteners on all 737-9s before they can fly again.
  • An Alaska Airlines flight had to descend from 16,000ft after its door plug detached, resulting in rapid cabin depressurization.
  • Boeing supported the NTSB investigation and agreed with the FAA’s decision to ground all affected 737-9 planes pending inspections.

QANTAS FREIGHT ADDS ADDITIONAL FREIGHTERS

21 DEC 2023• Qantas to expand freighter fleet through conversion of two Airbus A330 aircraft

• One converted freighter for international network, other for Australia Post’s domestic parcel and mail business

• EFW to convert aircraft and increase capacity to around 50 tonnes

• Conversion includes removal of seats, installation of cargo handling system

• Chief executive optimistic about permanent expansion of e-commerce due to pandemic

• First converted A330 for Australia Post domestic air freight to start operating in mid-2023, second in late 2023

• Qantas also becoming launch operator for Airbus A321P2F with third delivery expected this week

• Carrier will now operate up to 25 dedicated freighter aircraft after all conversions are completed

• Second A330-200P2F delivered from EFW, capable of holding up to 23 containers and XXL pallets

• Airline also operates three EFW-converted Airbus A321P2Fs

• Qantas Freight set to increase domestic fleet with six Airbus A321s between 2024 and mid-2026

Qantas Freight, the cargo division of the Australian airline, is poised to significantly expand its operational capacity. This strategic move is underpinned by the conversion of two Airbus A330 aircraft into freighters, one servicing the international network, and the other catering to Australia Post’s domestic parcel and mail business. These modifications, which involve the removal of passenger seats and installation of a cargo handling system, aim to bolster the freighter’s capacity to around 50 tonnes.

The anticipated growth in e-commerce due to the pandemic has spurred this expansion, with Qantas Freight set to increase its domestic fleet with six Airbus A321s between 2024 and mid-2026. Furthermore, the company is also the launch operator for Airbus A321P2F, with the third delivery expected this week. Upon the completion of all conversions, the carrier will operate up to 25 dedicated freighter aircraft. This commitment to augmenting its freighter fleet places Qantas at the forefront of the cargo industry, ready to meet the increasing demand for freight services.

Ipec History and Timeline:
27 OCTOBER 2022

IPEC was one of Australia’s most recognised transportation companies. The yellow and black Ipec commenced operations in Adelaide, South Australia and Melbourne, Victoria in early 1955 as Interstate Parcel Express Company. IPEC pioneered the road linehaul and overnight AIR freight industry as we know it in Australia. The basic operations were to send vehicles from depots to meet other vehicles from depots at halfway points and swapping freight and then returning to their original depot for early morning delivery runs.

New routes were opened quickly between major capital cities over the following years, employing similar founding principles, expanding throughout the country.
IPEC was purchased from Mayne Nickless in 1998 by Toll Holdings and renamed Toll IPEC.

1955 First parcel delivered
1956 Express service expanded to include Sydney
1958 Express service expanded to include Brisbane (premises established at Moorooka)
1960 IPEC moved Sydney operations from Bankstown to Chullora
1961 Perth branch opened at Dianella
1962 National Telex link between depots introduced
1962 IPEC and Rex Overnight Parcel Express merged
1962 New yellow and black livery introduced
1962 Rex opened in Hobart
1963 Depot established at Launceston
1963 Inauguration of IPEC-AIR FREIGHT Melbourne to Tasmania
1964 Melbourne office moved to new premises at Hope Street, Brunswick
1964 IPEC moved into new Adelaide head office and depot at Frewville
1965 Canberra depot opened
1965 New service to Gold Coast introduced
1966 New IPEC depot opened at Launceston Airport
1966 Inauguration of IPEC Newell Express service
1966 Overnight road-air Bristol Freighter service (Melbourne-Brisbane via Cowra) launched
1967 New Brisbane depot opened at Salisbury
1967 IPEC purchased first MAN trucks
1968 IPEC Highway Patrol cars introduced
1968 IPEC expanded into the furniture removal business with the acquisition of W.H.A. Clues
1968 Second Sydney depot opened at Mandible Street, Alexandria
1968 Newcastle depot moved to new premises
1968 Hobart depot moved to new premises
1969 IPEC Removals took over Philliphoffs in WA and Broughton Cornish in Tasmania
1969 Removals depots opened in Sydney, Melbourne, Brisbane and Canberra
1970 IPEC took over Jetaway
1971 IPEC took over Dart Express and Phoenix Transport
1972 Melbourne operations moved to new facilities on the Hume Highway at Campbellfield
1972 Rex Sydney depot moved from Alexandria to Parramatta Road, Flemington
1972 Computerisation of accounts
1972 Acquisition of Barlow Transport Company
1973 IPEC International started
1973 New Adelaide freight terminal established at Richmond
1973 New and larger premises opened at South Guildford, WA, and Newcastle, NSW
1974 Complement reached 800 employees, 400 vehicles
1974 NSW Agents appointed in Bathurst, Orange, Dubbo,Wagga, Griffith, Singleton, Tamworth
1974 Villawood depot opened in Sydney
1974 IPEC took over Tenex Transport in northern Queensland
1974 Removals division sold to Grace Bros.
1975 Tamworth depot opened
1975 IPEC-AIR goes national

1975 IPEC Air Freight Sydney to Perth
1975 Gosford depot opened
1975 IPEC Fashion Express started
1975 Takeover of Trans-United Express. Name changed to Trans-United Freight
1975 Additional NSW country depots opened in Dubbo, Orange, Wagga, Griffith
1976 Jetaway Brisbane opened
1977 Victorian country area opened up with depots at Shepparton, Mildura, Ballarat, Bendigo, Morwell, Hamilton, Wangaratta, Bairnsdale and Mount Gambler in SA
1977 Takeover of All Points Express, Wollongong
1977 IPEC-AIR moved from Villawood to Mascot
1977 Campbelltown depot opened
1977 New IPEC depot opened at Newcastle
1978 Jetaway moved to new premises at Glenbarry Road, Melbourne
1978 IPEC-AIR commenced operating Argosy air freighters across Bass Strait
1978 Tenex Townsville moved to new and larger premises
1979 First VDUs installed in head office
1979 Porky’s Pickups acquired and rebranded as IPEC Darwin
1979 Echuca depot moved to Moama
1979 Tiger truck designed by IPEC engineers introduced
1979 Coffs Harbour depot opened
1979 Gladstone depot opened
1979 IPEC Fashion Express introduced in New Zealand
1979 Midnight Flyer road-air service introduced
1979 Purchased European transport companies Gelders-Spetra International and Sdyer Transport
1980 Skypak takeover
1980 New depot, Jetaway Adelaide
1980 Darwin depot moved to new premises
1980 Jetaway opened Northern Territory service
1980 Lismore depot opened
1980 Alice Springs depot opened
1981 Oracle system installed in Sydney
1981 Ipec International commenced in Auckland and Wellington, New Zealand
1981 On-line computers, Sydney and Melbourne
1981 Canberra depot moved to new premises
1982 On-line computer network extended to Brisbane
1982 Singleton depot opened
1982 Agreement signed for purchase of DC-9 from Inex Adaria Airline
1982 First IPEC DC-9 arrived in Australia
1982 Barlow-Jetaway amalgamation
1982 Inaugural DC-9 flight to Hobart
1982 Argosy freighters switched to mainland routes
1982 First DC-9 freight flight to Launceston
1982 TAA agreement commenced
1982 Closure of Jetaway
1983 IPEC Fashion Express International closed
1983 Sale of Skypak to TNT
1983 IPEC Europe sold to TNT
1983 IPEC International Sold to Mayne Nickless
1983 Mayne Nickless acquired 50% of IPEC
1984 IPEC computer system installed at Overnighters
1984 VDU installed in Townsville
1985 IPEC computer system installed at Wards Express
1986 Work commenced on Sydney Service Centre
1986 Sydney Service Centre opened
1986 Launch of Logistics Consulting Service
1986 Launch of IPEC Hi-Tech Express
1986 VDU network extended to Canberra
1986 Fliway Computer Transport purchased
1987 New Albury premises established
1987 New Mount Gambier premises established
1988 New Rockhampton premises established
1988 IPEC Transport’s largest profit reported to date
1988 New service centre opened at Kalgoorlie, WA
1988 New Perth premises established
1988 Head office and Adelaide Service Centre combined at new premises
1988 Mayne Nickless purchased remaining 50% of IPEC Transport
1989 Purchased J.S. Transport
1990 Computer Aided despatched introduced
1990 On-line proof of delivery introduced
1990 Began to use pagers to advise drivers of pickups
1990 IPEC welcomes its new DC-9 (VH-IPC)
1991 IPEC first B-Double runs from Adelaide to Perth
1991 IPEC took over the linehaul operations for The Overnighters
1993 Restructure – IPEC Road Distribution incorporating IPEC and The Overnighters, Specialised Services

 

 

IS AUSTRALIA POST A GOOD BUSINESS

01 MAY 2021

IN THE OPINION OF THE AUTHOR NO, HERES WHY.

AUSTRALIA POST ,A GOVERNMENT OWNED COMPANY , TURNED OVER IN EXCESS OF A$7 BILLION DOLLARS LAST FINANCIAL YEAR AND REPORTED A PALTRY PROFIT OF APPROX A$50 MILLION BEFORE TAX!AFTER PAYING THE FISCAL FIEND HIS ANNUAL DUES, AUSTRALIA POST NET PROFIT ON TURNOVER WAS LESS THAN OR AROUND 0.5 PERCENT, (YES ,HALF A PERCENT!) APPROX A$35 MILLION.

FRANKLY SOMEONE NEEDS TO LET THE CEO, BOARD AND CHAIRMAN KNOW, A PROFIT BEFORE TAX OF A$50 MILLION ON A TURNOVER OF OVER A$7 BILLION IS SIMPLY NOT GOOD ENOUGH. “SUCH A FINE LINE THEY WALK”. PLEASE CONSIDER THIS, AUSTRALIA POST HAS NO REAL COMPETITION!. WITH A TURNOVER AROUND A$7 BILLION THE BUSINESS COULD FALL INTO A LOSS SITUATION VERY EASILY ,QUICKLY AND AT ANY TIME!

AUSTRALIA POST TELL YOU THAT THE COMPANY PROFIT HAS INCRESE4D 30 PERCENT YEAR ON YEAR, YES TRUE FROM 41 MILLION TO 55 MILLION , BUT WE ARE POINTING AT THE REVENUE! AS IT STANDS RIGHT NOW (AND AS HAS BEEN THE CASE FOR MANY YEARS) AUSTRALIA POST IS NOTHING MORE THAN AN GIANT EMPLOYMENT COMPANY, KEEPING HARD WORKING AUSSIES IN WORK WHILE AND AT THE SAME TIME ENRICHING CEO’S EXECUTIVES AND BOARD MEMBERS , WITH EXORBITANT SALARY PACKAGES, RIDICULOUS EXPENSE CLAIMS (CEO’s LIVING AT THE MELBOURNE HYATT ,WHILE WORKING IN MELBOURNE BUT BASED IN SYDNEY SHOULD RELOCATE OR LOOK FOR ANOTHER POSITION !), SILLY BONUS’S TO ALREADY HUGELY OVERPAID EXECUTIVES. OF COURSE THEY DONT WANT TO SELL AUSTRALIA POST !ITS ALMOST LIKE THEY ARE IN ANOTHER WORLD!. JUST ENOUGH PROFIT THERE TO KEEP ALL PARTIES IN AGREEMENT!

NEARLY FORGOT,  DONT FORGET TO  GET THE CHAIRMAN AND THE BOARD TO PUT ASIDE SOME MORE, EXTRAORDINARY CASH FOR OUR POSTIE 1, CHRISTINE TOO! HER CLAIM IS PENDING (THE CHAIRMAN AND BOARD DIDNT BOTHER TO TICK EVEN THE MOST BASIC BOXES LIKE SECURING  A ENFORCEABLE WRITTEN RELEASE RESIGNATION LETTER! FROM THE FORMER CEO )

A CALL TO THE AUSTRALIAN GOVERNMENT TO SELL/ BREAK IT UP OR ASX LIST AUSTRALIA POST AND USE THE FUNDS TO HELP PAY DOWN NATIONAL DEBT

BE WARNED, SIMPLY TAKE A QUICK LOOK OVER THE FENCE AT A COMPARABLE BUSINESS, TOLL GLOBAL EXPRESS, WITH A REVENUE OF AROUND 3.2 BILLION (AND IT COULD BE ARGUED, RUN MUCH MORE EFFICIENTLY THAN AUST POST ) WAS SOLD TO ALLEGRO FUNDS (AFTER FALLING INTO A LOSS) FOR A $7.8 MILLION (AS HAS BEEN REPORTED ON THE Tokyo Stock Exchange)

DOMESTIC AIR FREIGHT AUSTRALIA WIDE and HAZERDOUS FREIGHT

04 Jan 2021

iF YOU ARE intending to consign air freight or air cargo, please read the below carefully and DO NOT pack any of the items mentioned below. Some HAZ items may be permitted to travel by air freight but will need accompanying documentation, if you are unsure about a particular item ask CargoMaster before consigning your air cargo. Please be aware if you do not declare HAZ cargo, penalties may be imposed including big fines and possible imprisonment.

The below items listed are strictly prohibited from air freight and must never be shipped through CargoMaster services without the correct accompanying documentation Failure to abide with this demand may result in your being prosecuted Insurances WILL NOT cover any of the prohibited items listed below.

Imitation (replica) or toy firearms
Aerosol cans/sprays
Dangerous Goods of every description

All living animals and/or creatures of every description
Human or animal remains or ashes
Illegal goods (contraband)
Firearms, weapons or any item than could be used as a weapon, explosive devices, ammunition, or any parts hereof

Dry ice
Engines, generators, and gear boxes
Fire extinguishers
Life jackets
Food products of every description (whether perishable or not perishable)
Perishable goods such as, but without limitation, pharmaceutical products
Lithium batteries or products containing such batteries.
Alcoholic beverages of every description
Furs and/or ivory or items made here from
Tobacco and tobacco products of every description
Automotive panels
Antiques
Fine Art. “Fine Art” means paintings, etchings, pictures, tapestries and other bona fide works of art, valuable rugs, statuary, marbles, bronzes, rare books, antique silver, manuscripts, porcelains, rare glass and bric-a-brac, collections of books, mixed periodicals, photographs, slides, clippings and other articles of a similar nature including furnishings.
Deeds and/or securities and/or treasury notes and/or any other cash equivalents and/or tickets and/or vouchers and/or stamps and/or duty stamps and the like.
Designs and/or patterns and/or plans and/or manuscripts and all other documents.
Jewellery and/or watches of every description
Money and/or coins of every description.
Precious Metals. “Precious Metals” means silver, gold, platinum, palladium, iridium, osmium, rhodium, and ruthenium.
Precious Stones. “Precious Stones” means diamonds, emeralds, rubies and sapphires.
Semi-precious Stones. “Semi-precious Stones” means amethyst, aquamarine, aventurine, carnelian, garnet, lapis lazuli, opal, pearls, rose quartz, topaz and tourmaline

* We will not accept any materials and products that may be dangerous or hazardous to handling staff
* We will not carry any substances classified as dangerous in the latest edition of the IATA publication

What are dangerous goods

Dangerous Goods are articles or substances which are capable of posing a significant risk to health, safety or to property when transported by air.

A glance in the garden shed or under the kitchen sink will reveal a wide array of things which are potentially Dangerous Goods. A few examples of the more common types of items would include pesticides, petrol, acids, aerosols and bleaches etc. You may feel comfortable storing these items in your home or transporting them in your car on the way home from the shop because you know where they are and the risks associated with them in that situation. You take precautions such as putting them in a high cupboard or a locked shed, as you dread the thought of someone swallowing or mishandling them. However, move them into the unfamiliar environment of an aircraft flying high above the earth where they may be subject to severe atmospheric pressure and temperature variations as well as vibrations and many items behave in an unpredictable manner.

Everyday things which were never meant to fly
Lawn mower Cans Matches
Camping fuel containers (in almost all cases, these cannot be carried. You will have to settle for buying fuel at your destination)

Surfboard repair kits (the resin in these kits is highly flammable)

Corrosives such as acids, alkalis and mercury.

Security attache cases incorporating explosives and dye cartridges are forbidden

Machines with petrol powered engines (lawn mowers, whipper snippers, chain saws). These are not permitted as passenger’s checked or carry-on baggage.

Fireworks, signal flares, sparklers or explosives (these are generally forbidden and in fact most Australian states require permits for the possession of fireworks)

Fuel, paints, lighter refills, matches

Drain cleaners and solvents

Spray cans, butane fuel, scuba tanks, propane tanks, CO2 cartridges

Self inflating life vests

Ammunition, gunpowder, mace, tear gas or pepper sprays are generally forbidden

Dry ice, gasoline powered tools, wet cell batteries and camping gear with fuel.

Radioactive materials

Poisons

Infectious substances.

Non-radioactive medicinal or toilet articles (including aerosols) such as hairsprays, perfumes, colognes and medicines containing alcohol.

Consumer Electronic Devices containing Lithium metal or Lithium ion cells or batteries such as watches, calculating machines, cameras, cellular phones, laptop computers, camcorders etc.

Lithium or lithium ion batteries – We do not send Any items containing batteries, these will be removed & penalties may apply

 AIR CARGO DROP IN APRIL.

5 June 2020

Data provider, Clive Data Services has reported a slight improvement in air freight volumes for the month of May compared to April 2020.

The Data provider advised that there was a “slight upward curve” in airfreight volumes, due to the reported -31% year-on-year decline in May compared with the -37% year-on-year decline in April.

Capacity pressure remained high in in May, Clive Data dynamic load factor indicates the volume and weight of cargo uplifted and April compared to May indicates a slight increase of just over 2.5%. A fall in demand in late May means it is likely that more difficult times ahead as aircraft start to ramp up volumes and capacity into the air cargo industry.

Over the last few months comparing airfreight demand , CLIVE said that March ended far worse than it started, while for April it was the other way around. In recent weeks ,it is obvious that May finished weaker than it started.” CLIVE explained.

Data specialists CLIVE reported: “After a series of week-over-week growth in volumes, a decline set in during the week of May 18-24, followed by an even stronger decline for the last week of May. During these last two weeks, the capacity growth rate versus the previous week was higher than the volume growth, thereby reducing the dynamic load factor for the first time in weeks by 0.5%.”

TAC advises that the reduction of pressure on capacity had caused a negative, downward impact on air freight charges to the busiest trade lanes

The steepest decline in air freight volume in history occurred in April as reported by IATA. It has been reported also that steep declines in air freight charges will continue until capacity ramps up later in 2020 or into 2021.

The managing Director of Clive Data , commented: “Looking at the last 12 weeks, it is clear to see that market volumes remain erratic and that this will continue for the foreseeable future. This is one of the few certainties we have at the moment.”

“We can see some dark clouds gathering and this is a cause of concern for air cargo. This is why, in navigating these uncertain times, weekly data becomes not only relevant to decision-making, but crucial.”

“Knowing what is happening each week gives the industry the clearest direction. We do not see signals yet that the increase in capacity is being met by growth in demand. With the announcements of increases in passenger schedules, global air cargo revenues may suffer ‘collateral damage’ of more capacity returning to the

 

AIRLINES USING PASSENGER AIRCRAFT TO MOVE FREIGHT

25 APRIL 2020 (1850HRS)

Some European airlines have been loading passenger aircraft with cargo on seats so as to try to keep air craft as full as possible.

Approximately 35 tons of medical goods have been uplifted by a Lufthansa A330 passenger aircraft from Shanghai, China to Frankfurt.

Cargo was not only loaded into the belly of the A330 but also in the passenger compartment on seats and stowage lockers above the seats.

Cargo was mostly for the medical industry, equipment such as masks, gowns and various other urgently needed air freight and medical equipment.

Lufthansa Air Freight said: “The required permits for the flight were issued in excellent cooperation with the foreign ministries and embassies of the People’s Republic of China and the Federal Republic of Germany.

Lufthansa Air Cargo is making every effort to strengthen security of supply by air. About half of the goods are normally transported in freighters, the other half in the bellies of passenger aircraft.

“Due to the far-reaching cancellations of passenger connections, valuable airfreight capacity is lacking. The Lufthansa Group and Lufthansa Cargo are therefore looking into the possibility of operating further flights exclusively for cargo transport on passenger aircraft.”

 An A330-200F freighter can uplift over 60 tons . The Boeing 777F freighter has a standard load capacity of  over 100 tons.

 Other airlines moving medical equipment from China to Europe include Austrian Airlines ,who have recently organised two flights ,using the Boeing 777 Over 100 tonnes of medical equipment has been shipped from Xiamen to Europe via Austrian Airlines .

LATAM stated it used  “seat containers” on the Airbus A320 Peru flight . The aircraft carried mostly perishables and medical equipment and general cargo.

Depending on the type of A320 can uplift approx 10 tons of air freight, although it depends on the type. Approx 10 ton in the belly and three ton above.

UPDATE WESTERN SYDNEY AIRPORT PLAN

23 APRIL 2020 (0946HRS)

Some of Australia’s largest freight companies have joined in a memorandum of understanding with Western Sydney Airport which is due to open late 2025-early 2026.

Western Sydney Airport will work with Australia’s biggest air freight operators to design a designated freight area for freight handling and operations at the new airport.

Graham Millet (Western Sydney Airport Chief Executive) has stated that Western Sydney International Airport has the potential to become Sydney’s busiest freight hub and will generate thousands of jobs.

“Operations will be 24/7 (unrestricted hours ) which means new export opportunities will become available for producers and exporters all around NSW.

Air Cargo originating in NSW will not need to be trucked to Melbourne and Brisbane, once Western Sydney Airport is operational goods will be uplifted just as quickly to Asian and other world wide markets.

Freight companies signing up to work with Western Sydney Airport on concepts for the air freight hub include Australia Post (including StarTrack), DB Schenker, DHL Express, DSV Air and Sea, FedEx, Menzies Aviation, Swissport, Qantas Freight, Skyroad Logistics and Wymap.

Millett said insights from these international freight leaders would help Western Sydney Airport optimise the design and functionality for its customers.

“The ongoing growth of online shopping as well as demand from Asia for Australian fresh produce, has had an enormous influence on the international freight market,” he said.

“Growing demand for pharmaceuticals, temperature-sensitive and perishable products will also play a key role in the future of air freight.”

Australian airports currently transport more than 1m tonnes of airfreight annually and this is forecast to grow considerably over the next decade.

The first stage of the Airport has the potential to process around 220,000 tonnes of airfreight each year through its proposed on-airport freight facility, with multiple dedicated freighter aircraft stands. This is set to scale up with demand, potentially handling 1.8m tonnes of airfreight each year in the future.

While the freight MOUs signed today focus on the airfreight industry, Western Sydney International will also provide space for Australian exporters, including the Agribusiness precinct located adjacent to the Airport.

Construction of Western Sydney International is “well underway” with the airport “on track” to open in 2026.

21 APRIL 2020 (1122 hrs)
VIRGIN AUSTRALIA ADMINISTRATORS APPONINTED:
The overseas based board of Virgin Australia (including 10 per cent owner Richard Branson) have elected to place the company into the hands of Australian based Administrators Deloitte. 
At the time of writing this news 10 parties have expressed interest in purchasing Virgin Australia.
With the loss of upto 16000 jobs ,The Australian Labour party and unions are urging the government to step in and help the troubled airline, by way of the injection of working capital as a loan facility or in return for an equity stake.
At Melbourne Airport today, ACTU president again suggested that majority Australian shareholders is smart and any Australian Government investment in Virgin Australia is smart.
DOMESTIC AIR FREIGHT  around Australia will be affected in the short term with the removal of Virgin Australia’s wide body aircraft from the East Coast-West Coast and return route. Wide body aircraft are capable of carrying heavier and larger AIR FREIGHT AUSTRALIA  wide compared to the more popular 737 narrow body.Currently Virgin Cargo has limited cargo capabilities with only 737 narrow body aircraft still operating around Australia.
Before the COVID outbreak in Australia Virgin Cargo was running wide body aircraft from Melbourne, Sydney and Brisbane to Perth and return. Due to the extra cost of running ,it is likely any new restructured Virgin will be without the wide body aircraft.
Major competitor Qantas Freight will be the only airline running wide body aircraft East -West .Air  Freighter services around Australia have not been affected. We can all expect to see not only increased air fares but also higher air freight charges.
Virgin Australia announced the appointment of administrators via the Australian stock exchange on Tuesday morning. Virgin Australia is (or was) 90 per cent foreign owned prior to the appointment of Deloitte.
21 APRIL 2020 (1134 HRS)
Australian Air freight open new markets

Australia’s industry representative for vegetable and potato growers, Michael Coote, believes the sector can continue to grow its produce with confidence. He postulated this following a $110 million International Freight Assistance Mechanism investment by the Federal government.

With Australia’s vegetable exports by both sea and air significantly impacted by COVID-19, AusVeg national manager export development Coote said the announcement had been welcomed by the nation’s vegetable growers.

“Additional planes over the next six months in cities including Perth, Melbourne, Sydney and Brisbane will give our growers another channel to move their produce into different markets

With about 90 per cent of Australia’s airfreight capacity lost since COVID-19 and prices for remaining air freight space dramatically increased, vegetablesWA chief executive officer John Shannon said most of the available air freight capacity had been taken up by more premium food products, including seafood and meat.

While higher prices due to freight costs had reduced demand for some products in international markets, he said demand remained for products that were a staple part of diets.

“There has been an increase of 200-400pc in airfreight costs,” Mr Shannon said. “For example, freight for Singapore and Malaysia is usually about $1.15-$1.50 per kilogram and that has increased to $2.50-$4/kg, while freight to the Middle East is now at $5-7/kg.”

Mr Coote said the mechanism set up by the Federal government was intended to cover the majority of costs exporters would need to pay for air freight.

“We’re hopeful that it will get per kilo down to similar rates that exporters were paying pre-covid, however that is yet to be determined,” he said.

 

21 APRIL 2020 (1122 hrs)
VIRGIN AUSTRALIA ADMINISTRATORS APPONINTED:
The overseas based board of Virgin Australia (including 10 per cent owner Richard Branson) have elected to place the company into the hands of Australian based Administrators Deloitte. 
At the time of writing this news 10 parties have expressed interest in purchasing Virgin Australia.
With the loss of upto 16000 jobs ,The Australian Labour party and unions are urging the government to step in and help the troubled airline, by way of the injection of working capital as a loan facility or in return for an equity stake.
At Melbourne Airport today, ACTU president again suggested that majority Australian shareholders is smart and any Australian Government investment in Virgin Australia is smart.
DOMESTIC AIR FREIGHT  around Australia will be affected in the short term with the removal of Virgin Australia’s wide body aircraft from the East Coast-West Coast and return route. Wide body aircraft are capable of carrying heavier and larger AIR FREIGHT AUSTRALIA  wide compared to the more popular 737 narrow body.Currently Virgin Cargo has limited cargo capabilities with only 737 narrow body aircraft still operating around Australia.
Before the COVID outbreak in Australia Virgin Cargo was running wide body aircraft from Melbourne, Sydney and Brisbane to Perth and return. Due to the extra cost of running ,it is likely any new restructured Virgin will be without the wide body aircraft.
Major competitor Qantas Freight will be the only airline running wide body aircraft East -West .Air  Freighter services around Australia have not been affected. We can all expect to see not only increased air fares but also higher air freight charges.
Virgin Australia announced the appointment of administrators via the Australian stock exchange on Tuesday morning. Virgin Australia is (or was) 90 per cent foreign owned prior to the appointment of Deloitte.