Asia-Pacific Airline Hubs

April 24, 2006 by SwizStick  
Filed under Airlines, Integrators, QuickNews

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Thanks to China’s incredible year-over-year growth in exports and Asia’s overall lopsided trade deficits with Europe and North America, airlines are scrambling to establish hubs in the region to capitalize on future growth:

For their part, airports in the Far East are expanding facilities and pushing to attract cargo airlines in what is shaping up as a high-stakes battle to determine the future of air trade lanes. Carriers and forwarders’ decisions in the next several years could play a big part in determining long-term air shipping patterns in Asia. It appears that the biggest airports in the largest markets, such as Shanghai, have the advantage in courting the world’s cargo players.
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With Shanghai the focal point of international companies’ drive into China, Pudong’s facilities are bursting with cargo originating at its own doorstep. Propelled by a 14.5 percent surge in tonnage, the airport leapfrogged sites such as Paris and Miami to jump from 14th place in 2004 to No. 8 in the global hierarchy last year, according to Airports Council International figures.

For this reason, DHL does not envision a hub role for Pudong. “Shanghai is full,” said Charles Kaufmann, DHL Global Forwarding’s director for North Asia. According to one airline executive, problems with transloading and issues with customs add to drawbacks that could disqualify Pudong as a hub for many carriers.

The article points out those cargo carriers planning hubs in the region:
UPS – building its Pacific hub at Shanghai’s Pudong airport to handle 200,000 tons per year
DHL – already using Seoul’s Incheon Airport in a “hub” role.
Northwest – gave up fifth freedom rights (the right to take traffic from one foreign point and deplane it in another foreign point as part of an entire journey that also serves the airline’s home country – confused yet?) between Seoul and Hong Kong last year while concentrating on Narita as a hub.
FedEx – established regional hub at Guangzhou’s Baiyun airport which will replace Subic Bay

Read the whole thing. Loads of great info for those in the air cargo business or just curious about the future of cargo carriers in the region.

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