JUPITER SEA & AIR
SERVICES PVT. LTD, EGMORE – CHENNAI, INDIA.
E-MAIL : Robert.sands@jupiterseaair.co.in Mobile : +91 98407 85202
Corporate News
Letter for Wednesday February
04, 2025
Today’s
Exchange Rates
|
CURRENCY▲ |
PRICE |
CHANGE |
%CHANGE |
OPEN |
PREV.CLOSE |
|
90.26 |
1.259995 |
1.376742 |
90.40 |
91.52 |
|
|
1.1796 |
0.0005 |
0.042402 |
1.1791 |
1.1791 |
|
|
123.3607 |
2.090996 |
1.666774 |
123.6163 |
125.4517 |
|
|
106.445 |
2.113197 |
1.946603 |
106.7038 |
108.5582 |
|
|
155.844 |
0.213989 |
0.137499 |
155.62 |
155.63 |
|
|
1.3673 |
0.0007 |
0.051222 |
1.3666 |
1.3666 |
|
|
97.579 |
0.053001 |
0.054287 |
97.523 |
97.632 |
|
|
0.5792 |
-0.0116 |
1.963432 |
0.5887 |
0.5908 |
/// Sea Cargo News ///
Export Gains from FTAs
May Be Offset by Slower Remittances
India’s external sector outlook received
mixed signals in the Economic Survey 2025–26, presented in Parliament on
January 29, 2026.
While recent and prospective Free Trade
Agreements (FTAs) are expected to expand export opportunities, the Survey
flagged concerns that stricter immigration policies in key destination
countries could slow remittance growth, potentially dampening a major source of
foreign exchange for India.
According to the Survey, bilateral trade
deals with partners such as the United Kingdom, Oman, New Zealand and the
European Union — alongside ongoing negotiations with the United States — are
expected to support India’s export diversification and deepen market access for
labour-intensive goods. These agreements are seen as reinforcing India’s
integration into global value chains and enhancing competitiveness across
sectors.
However, the survey warned that tightening
immigration norms in several advanced economies-nations that traditionally host
large numbers of Indian migrant workers-may cap growth in inward remittances.
These remittances, sent home by Indian expats, have historically formed a
significant and stable source of foreign exchange, helping to cushion the
current account and support domestic consumption.
The survey emphasised that India’s external
sector remains comfortably placed in the short run, underpinned by robust
foreign exchange reserves and manageable external debt levels. Policy makers
are expected to balance efforts to accelerate export growth and integrate the
diaspora into formal financial systems to sustain remittance flows.
Leather
Exports to EU Could Jump 20% Under India-EU FTA
The recently concluded India-European Union
Free Trade Agreement (FTA) is expected to give a significant lift to India’s
leather goods exporters, with industry analysts estimating up to a 20% increase
in exports to the EU once tariff barriers are removed.
The landmark deal, signed after nearly two
decades of negotiations, aims to eliminate import duties on a wide range of
products, boosting competitiveness for Indian manufacturers in Europe’s vast
market.
Under the agreement, tariffs on leather and
related products — which previously ranged up to 17% — will be cut to zero,
bringing Indian exporters in line with competitors from Bangladesh, Vietnam,
Cambodia and Indonesia that already enjoy preferential access to the European
market.
This shift is expected to unlock new orders
and strengthen India’s foothold in EU supply chains for footwear, handbags and
other leather based products.
Industry representatives said the FTA will
particularly benefit key production clusters such as Agra, Kanpur, Vellore and
Ambur, where exporters have long faced higher costs relative to rivals in
Southeast Asia. Zero duties are likely to improve price competitiveness and
encourage investment in capacity expansion and quality upgrades.
The FTA covers preferential market access for
over 99% of Indian exports by value and is seen as a strategic milestone that
could reshape trade ties between India and the EU’s 27 member states. Tariff
elimination for leather and other goods is expected to come into effect once
the pact is implemented, potentially as early as later this year.
India Exports to See
Limited Tariff Benefit from GSP Extension
The extension of the Generalised System of
Preferences (GSP) is expected to have only a limited impact on tariff relief
for Indian exports, according to the Federation of Indian Export Organisations
(FIEO).
FIEO said that while the continuation of the
preferential trade scheme provides some support to exporters, the overall
tariff benefits are modest as a large share of India’s exports already enter
key markets under low or zero duty structures.
The trade body noted that only select product
categories are likely to see marginal cost advantages from the extension.
Exporters also face growing challenges from non-tariff barriers, compliance
requirements and increased competition from countries that enjoy broader
preferential access under free trade agreements. As a result, the GSP extension
alone is unlikely to significantly alter India’s export competitiveness.
FIEO emphasised that deeper trade agreements,
market diver- sification and improvements in logistics and ease of doing
business would be more effective in boosting exports than reliance on limited
tariff concessions under preference schemes.
Economic Survey 2026
Calls for Duty Reforms, Logistics Push to Boost Export Competitiveness
The Economic Survey 2026 has underscored the urgent need to correct inverted duty structures, strengthen logistics infrastructure, lower logistics costs, and reduce regulatory expenses to enhance India’s export competitiveness—an essential factor in maintaining currency stability amid growing global fragmentation.
The Survey noted that India’s external sector is entering a period of heightened geopolitical and economic uncertainty with strengthened buffers, diversified trade linkages, and improving resilience.
However, it cautioned that policy efforts
must now focus on leveraging these strengths to sustain external stability
while supporting a high-growth trajectory in a world where global integration
is increasingly driven by strategic considerations rather than purely economic
ones.
‘All Ships at Risk’ Amid GNSS Disruptions in Baltic and North Sea
Authorities from Baltic and North Sea
countries have issued a joint warning that maritime vessels may face increasing
risks due to GNSS (Global Navigation Satellite System) interference and AIS
(Automatic Identification System) manipulation.
The alert comes amid reports of navigation
disruptions and suspicious signal anomalies affecting commercial and fishing
ships.
Officials emphasised that both accidental
interference and deliberate spoofing of GNSS signals could mislead vessel
positioning, posing safety hazards, disrupting shipping schedules, and
potentially endangering ports and offshore infrastructure.
Ships operating in the region have been urged
to exercise caution, cross-check navigation data, and report anomalies
immediately.
Maritime experts highlighted that these
disruptions could impact cargo flows, offshore operations and marine safety if
unaddressed. Authorities are working to enhance monitoring systems, issue
guidance to vessels and coordinate with inter-national maritime safety agencies
to mitigate the risks.
Suez
Route Uncertainty Pushes Container Shipping Rates Lower
Global container shipping rates have extended
their decline as continued uncertainty around the Suez Canal route weighs on
market sentiment, despite ongoing geopolitical risks in the region.
Market indices show freight rates easing for
a third consecutive week, reflecting softening demand, excess vessel capacity
on some routes, and cautious booking behaviour by shippers.
While many carriers continue to divert
vessels around the Cape of Good Hope, the lack of a clear escalation or
resolution in the Red Sea situation has reduced the risk premium built into
spot rates earlier.
Industry participants said that liner
operators are facing pressure from weak cargo volumes and intensified
competition, particularly on Asia–Europe and transpacific trades. Some carriers
have responded with blank sailings and capacity adjustments, but these measures
have so far failed to arrest the downward trend in rates.
Analysts expect freight rates to remain
volatile in the near term with movements closely tied to developments in the
Red Sea, fuel costs and global demand conditions, especially from Europe and
North America.
Palau Launches New
Ship Registry to Attract Global Shipping
The Republic of Palau has officially launched a new ship registry, aiming to attract international vessel owners and expand its presence in the global maritime sector.
Officials said the registry will offer
competitive registration fees, modern regulatory frameworks, and compliance
with international maritime standards, positioning Palau as a preferred flag
state for commercial ships, including bulk carriers, tankers, and container
vessels.
The move is part of Palau’s strategy to boost
maritime revenue, create jobs, and enhance its standing in global shipping,
leveraging a streamlined registration process and attractive incentives for
shipowners.
Industry experts noted that small island
states are increasingly turning to ship registries as a means to grow their
maritime sectors and generate foreign exchange.
China-Australia
Tensions Rise Over Darwin Port Control
Tensions between China and Australia have
intensified following disputes over the control and management of Darwin’s
port, a strategic gateway for trade in Northern Australia. Beijing has
reportedly raised concerns over national security measures and regulatory
scrutiny affecting Chinese investment and operations at the port.
Australian authorities defended their
oversight, citing national interest and security considerations, and reaffirmed
that all foreign investments are subject to regulatory review under domestic
laws.
The escalation marks the latest friction in
bilateral relations, which have faced strains over trade, technology, and
regional security issues.
Analysts said the dispute could affect port
operations, Chinese investments in Australia and broader economic ties, while
both sides continue diplomatic talks to manage tensions and safeguard trade
flows.
Blocked
Airline Funds: IATA has had enough!
Aviation in Africa is on the rise, at least in some of the continent’s 54 countries. However, the willingness of some governments to release withheld funds by returning them to their proprietors, passenger and cargo airlines, is in decline. If they do not change this practice, they risk being isolated from intercontinental air traffic. The International Air Transport Association (IATA) has now issued a warning about this problem and its possible consequences. It remains to be seen whether those affected will heed this alert and change their policy.
Algeria tops the list of countries that are permanently blocking airline funds. The country owes USD 307 million to foreign passenger and air cargo companies operating there. These are funds from local ticket sales or booked and paid air cargo shipments, but to which the airlines concerned have no access due to a repatriation blockade proclaimed by the aviation authority of the country.
Blocked funds are revenues earned by
international airlines in local currencies that cannot be converted and
repatriated in U.S. dollars due to government-imposed restrictions or foreign
exchange shortages. But how does this happen and what measures are needed to
release blocked funds?
Complex scheme
Internationally operating airlines have a unique business structure. They earn
revenue in many countries, but most of their major costs are incurred at their
home airports – maintenance, manpower costs, fuel, expenditures for ground
equipment or office buildings.
This very complex scheme can only function
when airlines are able to repatriate the funds earned from sales outside their
home turf. It ensures that carriers can pay their bills and keep operations
running permanently, safely and reliably.
Binding agreements between airlines and
national aviation authorities or government bodies are supposed to guarantee
this. However, as the table shows, this is often not the case. As of OCT25,
airlines had a staggering USD 1.2 billion in blocked funds globally, claims
IATA. Timely repatriation in U.S. dollars is essential for airlines to meet
dollar-denominated expenses like leasing, maintenance, fuel, and salaries.
Blocked funds block airline development
Should funds remain trapped, airlines are exposed to currency depreciation. If
a local currency loses 20% of its value during the delay, the airline suffers a
direct financial loss when converting it back to dollars.
At the same time, carriers often borrow to
cover operational expenses while waiting for blocked funds to be released, and
rising interest rates can add hundreds of thousands in unplanned costs. Or
there could be opportunity cost: capital tied up in blocked funds cannot be
invested in fleet upgrades, route expansion, or sustainability initiatives,
torpedoing growth and reducing competitiveness.
Consequently, airlines must factor this risk
into their network and financial planning, particularly if serving financially
strapped African countries. Trapped funds often lead to reduced flight
frequencies, higher fares, or even the suspension of routes altogether. In
effect, unlawfully withheld proceeds make a country more expensive and less
attractive to foreign carriers.
Loss of trust
Thomas Reynaert, IATA Senior Vice President, External Affairs, warns of another
consequence of this obstructionist attitude: loss of trust. “The longer
funds remain trapped, the greater the damage to confidence. International
airlines and investors see blocked funds as a warning sign of financial
instability. Currency controls, while sometimes necessary during crises, can
tarnish a country’s reputation and strain relationships with global
institutions, making recovery harder and slower.”
The problem is serious, but there is light at
the end of the tunnel, says IATA official Reynaert. “With political
will, open dialogue, and a commitment to transparency, governments can resolve
blocked fund challenges in ways that support economic and aviation growth.”
Nigeria is an encouraging example
Prioritizing aviation in foreign exchange allocation is the first step toward
clearing blocked funds. From there, authorities can streamline administrative
processes and eliminate unnecessary bureaucratic hurdles that slow
repatriation. Experience shows that, with the right approach, blocked funds can
be released without destabilizing local economies.
Nigeria offers a clear example: through
constructive engagement and phased repatriation, the backlog was successfully
cleared. At one stage, the government withheld funds amounting to staggering
USD 850 million. However, through constructive dialogues and phased payback,
the backlog was successfully cleared.
IATA’s list of the largest 10
debtors***
***The XAF Zone includes Cameroon, Central African Republic, Chad, Republic of
the Congo, Equatorial Guinea, Gabon.
|
Country |
Amound Held in USD Million |
|
Algeria |
$307M |
|
XAF Zone |
$179M |
|
Lebanon |
$138M |
|
Mozambique |
$91M |
|
Angola |
$81M |
|
Eritrea |
$78M |
|
Zimbabwe |
$67M |
|
Ethiopia |
$54M |
|
Pakistan |
$54M |
|
Bangladesh |
$32M |
*As of October 2025 – Courtesy: IATA.
Automating
Air Cargo: Robo-Ops – Part 1
Automation features heavily in air cargo
company visions when conference panels discuss the future of air cargo. Coupled
with digitalization and AI, it is seen as a core enabler of future
competitiveness. And yet, when does the future begin? In places like China,
there are already impressive examples of fully automated operations but, on the
whole, air cargo lags behind when it comes to automation maturity. And yet
Fraunhofer IML (part of Germany’s Fraunhofer Gesellschaft, Europe’s largest
applied research organization) and its Digital Testbed Air Cargo (DTAC), funded
by the German Federal Ministry for Digitalization and Government Modernization
(BMDS) to the value of €13.7 million, are testing an increasing number of cargo
automation projects together with air cargo industry stakeholders.
CargoForwarder Global asked Manuel Wehner
(MW), Project Manager and Research Associate at the Fraunhofer Institute for
Material Flow and Logistics IML, to elaborate on his research topic. The result
is a three-part interview series that looks at the overall autonomous robots
testing situation in Part 1, details the DTAC trials in Part 2, and offers a
broader discussion on robots and circular economy, cybersecurity, and the human
element in Part 3.
CFG: What are currently the biggest
challenges in getting autonomous robots to be a fixed part of air cargo
processes?
MW: So far, most stakeholders conduct
trials with just one or a few robots. This is understandable, given the fact
that airports are highly safety and security-relevant, processes and
environments are dynamic, the global regulatory framework is still being
developed and revised, and that local requirements differ even between
different airports and federal states within a certain country. The goal in
these trials is mainly to gain experience and to prepare for the future.
However, at some point, economies-of-scale need to be considered – and this is
currently the challenge. Of course, there are certain examples of fleet
implementations, when there is enough space (e.g. CDG), in greenfield projects
(e.g. AMS), or when the local context allows for scaling up of a specific
solution (e.g. HKG), but most stakeholders are still in the piloting phase.
CFG: So how does Fraunhofer IML help here?
MW: What we seek to do with our Fraunhofer
IML R&D efforts is twofold: Firstly, we support visionary approaches. As we
develop our own solutions from scratch, we are well-aware of technological
capabilities and limitations. Secondly, as a neutral, independent, non-profit
partner, we support the industry in getting rolling. This includes our know-how
and robot developments in the level 3 and 4 context, but even more so we are
now investigating level 5 autonomy. These levels describe the degree of automation,
see, for example, SAE’s J3016TM Recommended
Practice.
Fraunhofer IML complements the given
stakeholder context of airports, airlines, handlers, policymakers, and others,
by sharing research openly in presentations, panels and discussions as part of
industry groups, trade shows, industry events and scientific papers, without
promoting certain solutions. We often contribute to events hosted by IATA, ACI,
TIACA, and other global stakeholders. We also recently published a
detailed double-blind reviewed
paper about the O³dyn tests in the Logistics Research journal, which is called
‘Air cargo logistics automation and digital airport process management:
comprehensive empirical insights from Germany’ and available online (open
access). These tests are part of the Digital Testbed Air Cargo (DTAC), which we
will discuss more thoroughly in Part 2 of this interview series.
CFG: What do you think will be the ratio of
robots to humans in five years’ time, in an air cargo warehouse?
MW: The only appropriate short answer would
be: ‘it depends’. There are certainly early adopters in the market, who already
investigate fleet approaches of dozens of self-driving vehicles. The vast
majority of air cargo warehouse operators and other stakeholders, however, will
keep testing specific solutions for the time being, preparing for bigger
investment decisions in the future.
Many stakeholders in most regions still rely
on manual processes. The pressure caused by the lack of skilled workers is not
felt the same way in different parts of the planet yet. To give some numbers,
in five years and on a global scale, I expect less than 10% of automated
vehicles at airports, while on a local or national level, we might already be
seeing a share of 50% and more automation solutions as early as 2030.
CFG: Will robot control centers move off
airport, do you think? Will there be an increase in remote work?
MW: In the given context of cyber and data
security, we do not see control centers moving off airport, at least apart from
temporary trials and local initiatives. It is possible to remotely control
robots at airports, however, we see more potential for on-premise solutions,
where remote controllers, if required, will be located at the airport, and the
data will be processed in secure local networks.
Remote work might increase, because it will
take time to develop and roll out autonomous solutions. Hence, all stakeholders
have the choice to invest in level 4 (automation without safety driver or human
controller) or in lower-level automation (including remote control options) or
in level 5 functionalities, or all of the above. More important are the vision
and the business plan for the robot fleet that shall operate in 3, 5, 10 years.
Certainly, the number of human workers will
decrease, allowing those remaining to specialize and focus more on tasks such
as damage assessment, unusual cargo, and robot control. This can make airport
jobs more attractive again and add another facet to business considerations
besides the typical job-cutting argument. Automated solutions will relieve
human staff from doing exhausting and repetitive tasks, while enabling them to
engage in an exciting work environment as automation increases to support all types
of operations. That is an exciting outlook.
CFG: What are the current limits for today’s
robots?
MW: There are product specification sheets
for each robot, which I will not cite here. The truth is that air cargo
automation still requires lots of trial-and-error at the lowest possible risk
for humans and (expensive) assets. Robots, which are advertised as capable of
towing dollies, end up failing to tow even unloaded containers in real-life
testing. A certain kilogram threshold might only be applicable in ideal-world
scenarios, which are exceptions in daily operations.
Automated operations are compromised when
there is oil spilled on the warehouse floor, when pieces are sticky with tape
or unevenly loaded, or when other vehicles or aircraft do not obey speed
limits. We simply do not have designated areas for robot operations at most
airports yet, but we are trying to deal with difficult brownfield environments
as well as possible. These are as dynamic as intralogistics can be, which is
why we do not look too much at product sheets but at the real capabilities in
our test environments.
We contribute to shaping policymaking and
standardization efforts with our research. International legislation, handling
manuals, standards, guidelines and certifications can help bridge the gap
between theoretical, laboratory limits and real-life airport limits in dynamic,
sometimes chaotic traffic situations.
CFG: Which airport (in the world) is
currently the most advanced when it comes to robot applications?
MW: We see many early adopters and airports
keep on rolling out technologies in several regions, including Americas,
Europe, the Middle East, East Asia, and Asia Pacific. We have identified more
than 60 different use cases for air cargo automation in 16 countries worldwide
since 2017. These are publicly known as they have been featured in press
releases, research or other publications. It depends on the overall strategy,
i.e. is the airport aiming for level 5 operations eventually, or are level 3 to
4 operations sufficient for the current business? We currently do not see one
particular airport being far ahead of the rest, but there are certainly all
shades of experience levels between none to extensive.
Thank you, Manuel Wehner. We will be back
next week to delve deeper into Digital Testbed Air Cargo’s specific trials with
the five robots at Munich (MUC) and Stuttgart (STR) airports.
More information
About Manuel Wehner:
Manuel Wehner specializes in aviation logistics and autonomous air cargo
handling at the Fraunhofer Institute for Material Flow and Logistics IML. In
the Digital Testbed Air Cargo (DTAC), led by Fraunhofer IML and funded by the
German Federal Ministry for Digital and Transport (BMDV) with €13.7 million, he
oversees the development and testing of autonomous robotic systems for air
cargo handling at airports.
On behalf of the DTAC consortium, he accepted
TIACA’s ‘Sustainability Award’ in Hong Kong in June 2025 and Stat Times’
‘International Award for Excellence in Air Cargo’ in Nairobi in February 2025
for the tests of a heterogeneous robot fleet at the DTAC partner airports MUC
and STR in 2024.
Wehner studied Management and Technology
(M.Sc.) in Munich and Mexico, as well as Aviation Management (B.A.) in
Frankfurt and Saudi Arabia. He is a lecturer and co-founder of the Institute
for Aviation and Tourism (IAT). As a project manager for Fraport AG, he led the
test operation of autonomous minibuses at Frankfurt Airport in 2017.
In November 2025, Wehner was featured in the
CargoForwarder Global’s weekly ‘Spotlight on…’
series.
About the Fraunhofer IML:
The Fraunhofer Institute for Material Flow and Logistics IML is part of the
Fraunhofer-Gesellschaft, Europe’s largest applied research organization, which
employs around 32,000 staff and has an annual research budget of 3.6 billion
euros.
Fraunhofer IML is considered the top address
for integrated logistics research. Interdisciplinary teams put together
according to project and customer requirements create cross-industry and
customer-specific solutions in the field of material flow technology, business
process modeling, and in the areas of transport systems and resource logistics,
among others. Other current research priorities include the sections of
artificial intelligence and smart robotics, smart finance, the resilience of
supply chains and the sustainable transformation of logistics. The institute is
also the initiator of the non-profit Open Logistics Foundation, which promotes
open-source applications in logistics, and part of the Lamarr Institute for
Machine Learning and Artificial Intelligence, which is permanently funded as
part of the German government’s AI strategy.
Fraunhofer IML’s Department for Aviation
Logistics specializes in various logistics challenges related to air traffic
and airport operations, including airport digitalization, airport automation,
and green aviation topics.
Find more information here: https://www.iml.fraunhofer.de
About the Digital Testbed Air Cargo (DTAC):
The Digital Testbed Air Cargo (DTAC), led by the Fraunhofer IML, is funded with
13.7 million euros by the German Federal Ministry for Digitalization and
Government Modernization (BMDS). The DTAC aims to enhance the air cargo
industry through digitalization and advanced technologies. It serves as a
platform for testing and validating new concepts, processes, and technologies
related to air cargo logistics. The testbed brings together stakeholders from
various sectors, including airlines, logistics providers, and technology
companies, to collaborate on solutions that improve efficiency, transparency,
and quality in air cargo operations. By leveraging data standards, AI-based
predictive analytics, as well as automation and robotic autonomy, the DTAC
addresses key challenges in the air cargo supply chain concerning both physical
and digital processes.
Besides the Fraunhofer IML as the consortium
leader, the DTAC consortium consists of Cargogate Munich Airport GmbH, CHI
Deutschland Cargo Handling GmbH, Flughafen Köln/Bonn GmbH, Fraport AG Frankfurt
Airport Services Worldwide, KRAVAG-Logistic Versicherungs-AG, Lufthansa Cargo
AG, LUG aircargo handling GmbH, Mitteldeutsche Flughafen AG, Schenker
Deutschland AG, and Sovereign Speed GmbH. The grant number is ‘FKZ:
45KI14A011’.
Venezuela’s
Transcarga takes to the skies again
It’s a well-known saying that those who are
declared dead live longer. This applies to the Venezuelan airline, Transcarga
International Airways (TIA), which is about to be revived. After it bit the
dust in OCT23, it recently regained its AOC and is preparing to resume flights
once more.
These will be carried out with two McDonnell
Douglas DC-10-30 freighters, which TIA intends to operate on long-haul
transcontinental routes. The relaunch is aimed at strengthening the country’s
logistics supply chains, with special emphasis on supporting the oil industry
and strategic industrial sectors by transporting heavy machinery and critical
supplies.
No operational specifics announced yet
The move comes after the fall of the Maduro regime and the end of the U.S.
blockade on air traffic to and from Venezuela. This has been indirectly
confirmed by executives of Transcarga International Airways, pointing out that
the recent “geopolitical changes in the region allow TIA to fully
reintegrate into the logistics market.” The routing and the dates of
entry into service of the two McDonnell Douglas / DC-10-30 aircraft will be
announced following the completion of the required technical inspections.
With its two freighters, the company seeks to
position itself in the reconfiguration of Venezuela’s supply chains, focusing
on logistical support for the local energy industry. This includes the air
transport of heavy machinery, appliances and industrial supplies critical to
the revitalization of the country’s run-down oil sector.
The investment in the DC-10-30s is based on
vital strategic considerations. Crude oil and the technical and infrastructural
set-up necessary for its extraction and processing are the economic lifeline of
this highly indebted country, which has been driven into political and economic
ruin by the authoritarian presidential regimes of Hugo Chávez and Nicolás
Maduro.
No information available on the airline’s
finances
Prior to its grounding in the fall of 2023, the carrier was the only freight
airline offering non-stop cargo services between the United States and
Venezuela – at the time with Airbus A300 equipment.
Transcarga’s beginnings date back to its
maiden flight in 1998. It was founded by Julio Márquez Biaggi, a businessman
and former captain of Viasa/KLM, as Transcarga Intl. Airways, C.A. In the years
that followed, the company focused on charter flights between Venezuela and the
U.S. before scheduled flights supplemented its capacity offering.
TIA management has not provided any
information on the financing of the re-launch. The staffing situation is also
unclear at present, as is who will head the airline.
The fact that it is reactivating old DC-10
aircraft instead of leasing more modern and less fuel-thirsty freighters, does
not indicate that the carrier’s coffers are full.
“Sponsors
welcome!” says Chicago’s Airport operator CDA
In the UK and Germany, it is already common
practice to sell naming rights for soccer stadiums to financially strong
investors. Examples include Manchester City’s arena, now called Etihad Stadium,
and the Red Bull Arena in Leipzig, home ground of the local soccer club, RB
Leipzig. In Canada, big money mainly purchased the naming rights for hockey
stadiums, such as in Toronto, where the Maple Leafs play their home games at
Scotiabank Arena. Now, 700 km further southwest, at two Chicago airports, the
naming rights for hangars, terminals, and other assets can soon be purchased by
sponsors.
“The colleague responsible for airport
security has just gone to the Amazon hall, but he may also be in the Bud Light®
cargo terminal, or probably he has already arrived at the Kentucky Fried
Chicken boarding zone.” This is how information at Chicago O’Hare Airport
might sound in the future. Or at nearby Midway International Airport.
ORDNext
Both Chicago airports want to increase their revenues and start tapping into
additional financial sources outside the aviation sector.
At O’Hare, the campaign is called ORDNext and
aims to brand infrastructure facilities. The desired sponsors are companies
with international appeal and a flawless reputation. By purchasing the naming
rights of airport assets such as gates, concourses, or entire satellite
buildings, they hope to gain financial benefits and/or improve brand awareness.
Uncle Ben’s terminal
But where might this kind of commercialization in aviation end? Will runways,
aprons, or aircraft stands also be named after fast food chains in the future?
It seems that the sky is the limit when it comes to generating additional cash
to finance airport operations, modernization or expansion projects. That said,
in the future, cabin crew might tell passengers before departure, after they
have taken their seats, fastened seatbelts and gone through the safety
instructions that “our aircraft is taxiing from our stand at the Pepsi
Cola Gate, will pass through the Cadillac Apron sector and turn onto the
Roadrunner Hot Rod Runway for take-off.”
Sound bizarre? Perhaps, but other industries,
such as the film and sports industries, have long since embarked on this
course.
Non-stop commercialization
The Chicago Department of Aviation (CDA) has now invited interested companies
to submit proposals for obtaining naming rights for assets belonging to O’Hare
or Midway.
Prior to that, the administrator identified
potential targets for sponsorship, including charging stations for electric
vehicles, the bus fleet linking the airport terminals at ORD, parking
buildings, or lounge areas, cargo terminals and warehouses, among others.
The call for proposals does not constitute a
tender or may be understood as the entry into a contract but supports CDA in
gaining an overview of the interest of potential contractual partners as a
basis for further planning and steps, argue the initiators.
Expressions of interests expected
“By managing two global hubs, CDA is committed to thinking commercially and
seizing every opportunity to strengthen airport revenues in ways that support
our partner airlines and the traveling public,” Michael McMurray, CDA
commissioner told the media. “By inviting the best ideas from the
industry and gauging market interest, we are laying the groundwork for
sponsorship opportunities in existing facilities and new developments,” he
illustrated.
According to the official, companies may
submit their expression of interest until 17FEB26. Based on the data received,
CDA will set up a program for future naming rights aimed at broadening the
sources of income to increase the passenger experience and offer superior cargo
services at O’Hare and Midway.
I hope you have
enjoyed reading the above news letter.
Robert Sands
Joint Managing Director
Jupiter Sea & Air Services Pvt Ltd
Casa Blanca, 3rd Floor
11, Casa Major Road, Egmore
Chennai – 600 008. India.
GST Number : 33AAACJ2686E1ZS.
Tel : + 91 44 2819 0171 / 3734 / 4041
Fax : + 91 44 2819 0735
Mobile : + 91 98407 85202
E-mail : robert.sands@jupiterseaair.co.in
Website : www.jupiterseaair.com 1Branches : Chennai, Bangalore,
Mumbai, Coimbatore, Tirupur and Tuticorin.
Associate Offices : New Delhi, Kolkatta, Cochin &
Hyderabad.
Thanks to :
Container News, Indian Seatrade, Cargo Forwarder Global &
Air Cargo News.
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