Air Canada Selects Morpho's Itemiser DX for Enhanced Air Cargo Screening

WILMINGTON, MA–(Marketwired – Feb 19, 2014) – Morpho (Safran), through its subsidiary Morpho Detection, today announced that Air Canada has deployed Morpho’s Itemiser® DX desktop explosives trace detector (ETD) to screen air cargo.

Under terms of the contract, Itemiser DX was deployed at Air Canada cargo locations to replace legacy systems and maintain compliance with enhanced U.S. Transportation Security Administration (TSA) cargo screening mandates.

“Morpho is pleased Air Canada has recognized the operational and detection capabilities of Itemiser DX by selecting it to screen cargo and meet new security mandates,” said Karen Bomba, president and CEO, Morpho Detection. “The ability of Itemiser DX to detect and identify explosives in challenging environments, combined with Morpho’s global service teams, gives air cargo companies the capability to maintain regulatory compliance while ensuring peak performance and maximum system uptime.”

A lightweight, portable desktop system, Itemiser DX can detect residue from explosives on parcels, bags, cargo, skin, clothing, vehicles and other surfaces.

“Morpho Detection has helped us upgrade our screening capabilities and maintain TSA compliance in an efficient way and with no impact to our operations,” said Barb Johnson, Senior Associate, Regulatory Affairs at Air Canada.

First qualified for air cargo screening in 2010 and certified by six global regulatory agencies, more than 5,000 Itemiser DX units have been shipped to air cargo screening facilities, airport checkpoints, checked baggage screening and secure locations around the world. 

For more information on Morpho’s detection products, visit

About Morpho Detection
Morpho Detection, part of Morpho, Safran’s (PAR: SAF) security business, is a leading supplier of explosives and narcotics and chemical, radiological, and nuclear detection systems for government, military, air and ground transportation, first responder, critical infrastructure and other high-risk organizations. Morpho Detection integrates computed tomography, Raman spectroscopy, trace (ITMS™), mass spectrometry, X-ray and X-ray Diffraction technologies into solutions that can make security activities more accurate, productive and efficient. Morpho Detection’s solutions are deployed to help protect people and property the world over.

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Cargojet Awarded PUROLATOR and CANADA POST (Canada Post Group of Companies) Domestic Air Cargo Network Services Contract

MISSISSAUGA, ON , Feb. 19, 2014 /CNW/ – Cargojet announced today they
have been awarded the Domestic Air Cargo Network Services contract and
have signed a Master Services Agreement with the Canada Post Group of
Companies (CPGOC) for an initial seven-year (7) term with three (3)
thirty-six month (36) renewal options. Projected revenues are estimated
to be approximately one billion dollars during the initial seven-year
agreement based on projected volumes.

Cargojet will provide comprehensive Canada -wide air cargo services for
the Group of Companies, including Purolator’s national air cargo
network.  Cargojet’s domestic overnight network will be expanded and
enhanced significantly to handle the additional volumes and provide a
virtual dedicated Air Cargo Network to the Canada Post Group of

“Cargojet is extremely pleased to have been successfully chosen as the
exclusive primary domestic air cargo service provider to the Canada
Post Group of Companies.  Cargojet operates an extensive overnight air
cargo model, which will provide the most cost-effective and scalable
solution to the Canada Post Group of Companies,” said Ajay Virmani
President and CEO of Cargojet.  “Cargojet and the Canada Post Group of
Companies will work together to provide Canadians with world-class and
flexible air cargo services in today’s changing business environment, ”
added Virmani.

“We are excited about the prospect of working with Cargojet. Their
extensive air network, combined with Purolator’s extensive ground
network will enable us to continue to enhance and expand our service
offerings for customers while assuring our market competitiveness in
the long term,” said Patrick Nangle President and CEO of Purolator. “At
the heart of all our decisions at Purolator is delivering on our
promises to our customers. We are confident that this new partnership
will be instrumental in helping us meet this commitment as we continue
to evolve and grow.”

“Canada Post is undergoing a major transformation as customer demand
shifts from mail to parcel delivery with online shopping,” said Jacques
Côté, Group President, Physical Delivery Network, Canada Post.  “This
move will drive operational efficiencies, lower our transportation
costs and help ensure our parcel delivery remains competitive from a
cost and reliability perspective.”

About Cargojet
Cargojet is Canada’s leading provider of time sensitive overnight air
cargo services and carry over 500,000 pounds of cargo each business
night.  Cargojet operates its network across North America each
business night, utilizing a fleet of all-cargo aircraft. Cargojet
recently signed an LOI with Air Canada to explore strategic
opportunities in both cargo and airline operations within Canada and
international markets.  For more information, please visit:

About Purolator
Ranked one of the top 25 brands among Canadian consumers since 2011,
Purolator is Canada’s leading integrated freight and parcel solutions
provider. Celebrating over 50 years of delivering Canada on time,
Purolator continues to expand its reach and renowned service levels and
reliability to more people, more businesses and more places across the
country and around the world. Purolator is proud of its Canadian
heritage and is focused on sustainably positioning itself for future
growth and success. Purolator is also committed to contributing to the
well-being of the communities it serves and where more than 12,000 of
its teammates live, work and play.

About Canada Post
Canada Post is the country’s leading provider of electronic commerce and
customer communication solutions. It reaches more than 15.3 million
addresses, operates the country’s largest retail network, and offers
affordable and reliable service with convenient pickup and return
options for online shoppers. Together, Canada Post, Purolator Inc. and
SCI Logistics offer market-leading end-to-end solutions for e-commerce
shippers by leveraging the assets and expertise of the Canada Post
Group of Companies

Notice on Forward Looking Statements:

Certain statements contained herein constitute “forward-looking
statements”.  Forward-looking statements look into the future and
provide an opinion as to the effect of certain events and trends on the
business.  Forward-looking statements may include words such as
“plans,” “intends,” “anticipates,” “should,” “estimates,” “expects,”
“believes,” “indicates,” “targeting,” “suggests” and similar
expressions.  These forward-looking statements are based on current
expectations and entail various risks and uncertainties. Reference
should be made to the issuer’s most recent Annual Information Form
filed with the Canadian securities regulators, and its most recent
Annual Consolidated Financial Statements and Quarterly Financial
Statements and Notes thereto and related Management’s Discussion and
Analysis (MDA), for a summary of major risks. Actual results may
materially differ from expectations, if known and unknown risks or
uncertainties affect our business, or if our estimates or assumptions
prove inaccurate.  The issuer assumes no obligation to update or revise
any forward-looking statement, whether as a result of new information,
future events or any other reason, other than as required by applicable
securities laws. In the event the issuer does update any
forward-looking statement, no inference should be made that the issuer
will make additional updates with respect to that statement, related
matters, or any other forward-looking statement.

SOURCE Cargojet Inc.


Media Contacts:

Pauline Dhillon
Vice President Marketing, Public Government Relations
Tel: (905) 501 7373 

Karen White
Director, Corporate Communications
905 712-1084 ext. 23241

Canada Post:
Jon Hamilton
General Manager, Communications
Tel: (613) 734 4366

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Airlines see no lag in meeting new EU cargo security norms deadline

Airlines will have to comply with the European Union (EU)’s new norms for air cargo security by July 1 or face a ban in transporting cargo or carrying cargo to the region’s airports. Airlines will now have to ensure cargo bound for the region is screened or comes from a secure supply chain. Airlines, including European ones, will need a security verification certificate for cargo operations at an airport outside the region. This means airlines will need to get their cargo security processes followed at the airports (from where the cargo is shipped) audited by EU-authorised validators. The International Air Cargo Association has warned of implementation challenges, though airports and cargo operators in India are confident of meeting the deadline.

Air India and Jet Airways did not respond to emails.

Airports have begun steps to comply with the norms. “The government could have lobbied with EU and secured an exemption from the verification process,” an industry source said. In April-November 2013, airports in India handled 950,000 tonnes of international freight.

Air India and Jet Airways fly to Europe. Jet earns eight-10 per cent of its revenue from cargo. European airlines, including Lufthansa and KLM (Martinair), have direct passenger and freighter flights between India and Europe. Gulf carriers carry cargo from India to Europe and onward to the US via their West Asian hubs. X-ray screening at airports in India is done by the airline or Bureau of Civil Aviation Security (BCAS)-approved agents. The responsibility of securing items in warehouses rests with the airline. Access to the cargo terminal from the landside (the side of an airport terminal to which the public has access) is the responsibility of the airport or cargo terminal operator, supported by the Central Industrial Security Force (CISF). The responsibility of securing cargo when taken to the aircraft rests with the airline or its ground handler and CISF.

Raharamanan Panicker, group chief executive of Cargo Service Centre that runs terminals in Mumbai and Delhi, said: “I don’t think there will be any problem in India to meet the July 1 deadline. We have been carrying out 100 per cent screening of cargo by BCAS norms.” Bharat Thakkar, former president of the Air Cargo Agents Association of India, said: “My understanding is the entire validation process, from application to certification, will take two-three months.”

The Mumbai International Airport said: “The BCAS regulations meet all the requirements (in cases they exceed EU requirements) except a few procedural changes. These gaps have been identified and are being closed. The processes to bridge these gaps need BCAS approval. The Mumbai International Airport-approved regulated agent has requested permission from BCAS to undertake the validation. Similarly, some airlines, like British Airways, UPS, Jet Airways and Lufthansa, have also approached BCAS for undertaking independent validations. The whole process is likely to be completed by April-end.” Delhi International Airport said discussions were on with validators, to be completed before the deadline. The Bangalore airport said: “Our cargo partner, MBBA, is already compliant as of November. The other cargo partner, Air India SATS, has initiated the process and is expected to complete it by May.”

(mt is million tonnes)
  • In October 2010, two improvised explosive devices were transported as air cargo for US destinations. Fortunately, these were intercepted en route. These incidents highlighted to regulators and air carriers concerns regarding the security of air cargo
  • Air India flies to London (the UK), Paris (France) Frankfurt (Germany). Jet Airways flies to London Brussels (Belgium)
  • About 30% of cargo handled at Mumbai Delhi airports, the two busiest in India, goes to Europe. Airports in India handled 1.4 mt of global cargo in 2013-14

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Asia-Pacific Airlines post 6% passenger growth traffic in 2013

The Association of Asia Pacific Airlines (AAPA) has reaffirmed the pattern of continued steady growth in international air passenger demand, in contrast to soft air cargo market conditions in 2013.

Asia Pacific airlines carried a combined total of 220 million international passengers in 2013, 12 million more than in the previous year, representing 6.0% growth.

AAPA noted that the regional economic growth remained a positive driver of increases in business and leisure travel demand, coupled with improving business and consumer confidence in the major developed markets.

Reflecting comparatively strong demand on regional routes, international passenger traffic, measured in revenue passenger kilometer (RPK) terms, registered a more moderate 5.2% increase.

Combined with a 4.8% expansion in available seat capacity, the average international passenger load factor reached 78.2%, 0.3 percentage points higher compared to the previous year.

AAPA said that the international air cargo demand for Asia Pacific carriers, expressed in freight tonne kilometer (FTK) terms, recorded a marginal contraction of 0.6% in 2013, albeit an improvement from the steeper declines seen in 2012 and 2011.

In spite of the fall in demand, the year saw a 1.1% expansion in cargo capacity, resulting in a 1.1 percentage point decline in the average international freight load factor to 65.4%.

Commenting on the results, Mr. Andrew Herdman, AAPA Director General said: “Overall, Asia Pacific airlines recorded another year of solid growth in international passenger traffic in 2013.”

“Regional economies slowed a little but maintained positive growth rates, while signs of recovery in Europe and a stronger pickup in the US economy led to broader improvements in business and consumer sentiment. Air cargo markets remained subdued in 2013, but picked up towards the end of the year in line with increasing demand for Asian exports in the major developed markets.”

“Domestic air travel markets in the Asia Pacific region also enjoyed strong growth, with domestic passenger numbers up 10% to an estimated 740 million for the year, led by China. Overall, therefore, Asia Pacific airlines carried close to 1 billion passengers in 2013, a significant milestone,” said Herdman.

Looking ahead, Herdman concluded that “given expectations of a continuing modest improvement in global economic conditions, the outlook for Asian carriers remains broadly positive.”

“Nevertheless, operating margins remain compressed as a result of weak cargo revenues and other competitive pricing pressures. Airlines are responding by investing in newer more fuel-efficient aircraft, other productivity improvements, and value added service enhancements,” he added.

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Air cargo powers Sochi Olympics

Planning for the Winter Olympics in Sochi, Russia, took air cargo charter company Air Partner out of its normal modus operandi. Normally, the UK-based company arranges aircrafts after it contracts with a client to move cargo. After studying opportunities related to Sochi, Air Partner opted for the opposite.

“We found the aircraft first in this case,” says Mike Hill, regional freight manager, Germany, for Air Partner. “It sounds foolish, but it comes with a reason. Prior to last year, a lot of clients were asking about the possibility of charters to Sochi. A lot of forwarding companies wanted to send stuff to Sochi, but no one wanted to take the gamble on a charter.”

So Air Partner secured 12 charters from Frankfurt to Sochi via AirBridgeCargo. Hill says a 747 was the most economical cargo charter to arrange to Sochi. The charters drew lots of interest from around the globe. Frankfurt was chosen as the departure point because that is a hub for AirBridgeCargo and the carrier wouldn’t have problems arranging slots. It is also a prime spot for transshipments, he says.

After Aeroflot ceased freighter service last November, AirBridgeCargo became the only cargo operator that could fly into Sochi, Hill says. Air Partner launched its new product, the Sochi Express, during Air Cargo Europe last June. Interest was slow in developing, but picked up steam near the end of the year as the event approached.

“Frankfurt to Sochi in 3.5 hours was the perfect solution for many clients,” Hill says. “We fit the bill for companies that didn’t have enough cargo to commit to a whole 747. The only alternative was to send by truck. Seafreight was also an option, but that takes time and the Sochi port was closed from December due to security, so that option was out. The other option was to fly to Moscow and truck in to Sochi, but that was also a restrictive option.”

Hill describes Sochi International Airport as “provincial” and in a remote area that had not had the need for infrastructure improvements for many years.

“We did our site visit last year to the airport and discovered it was very much a Cold War airport,” Hill says. “Their high loader could only handle 4.5 tonnes, so any pallet we shipped had to be less than that. In most cases, that wasn’t a problem. Later, the airport upgraded its equipment so we were less restricted.”

With cargo facilities scarce at the Sochi airport, the 100 tonnes of cargo on each plane had to be collected quickly, so cargo handling had to get underway as soon as planes landed.

Products shipped on the Sochi Express included sensitive timing devices for various events, bobsleds, TV equipment and Olympic merchandise.

Hill says while the Sochi Express was a bit of a gamble, it was accomplished without major glitches.

“Brokers don’t usually secure capacity and then secure business. It has gone well. There were a few minor schedule changes, but our clients still got their cargo by their deadlines.”

With the Olympics charter successfully under its belt, Hill says Air Partner is contemplating a similar arrangement for the FIFA World Cup set for this summer in Brazil.

By the beginning of January, AirBridgeCargo had performed more than 30 charter flights. These included 747s and 737s and AN-124-100, IL-76TD-90VD and AN-12 freighters.

Volga-Dnepr Group’s participation in the Sochi Games dates back to July 2007, when the International Olympic Committee gathered in Guatemala to decide which city would be chosen to host the 22nd Winter Olympic Games in 2014. Volga-Dnepr Airlines transported a 63-tonne ice rink that featured in Sochi’s final bid presentation.

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Target Haul

Hi Youtubies, Happy New Years. Today I’m doing a Target Haul so hope you enjoy it :) Please LIKE & SUBSCRIBE ☺ ☞Follow me on other sites☜ ❣┘┝┢┣┐â”-┡┐├❣ – amytr…

Air Cargo Weakness Threatens Airline Revenues

According to some estimates, up to 40% of the value of world trade travels by air. Thinking about that, the factoid has the ring of truth. You don’t need a container ship or a VLCC to carry a haul of diamonds and gold or computer chips. And while 2013 air cargo traffic improved a bit, 2014 is expected to be another challenging year.

In remarks made Sunday ahead of the Singapore Airshow, International Air Transport Association (IATA) director general Tony Tyler cautioned that weakness in cargo markets is the airlines’ biggest worry for the new year. Based on the most recent numbers from the carriers, there is reason to be at least a little bit worried.

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In the fourth quarter, United Continental Holdings Inc. (UAL) cargo revenue dropped 9.5% to $220 million. For the year, United’s cargo revenue dropped 13.4% to $882 million. Cargo represents just 2.3% of the company’s revenue, but, given the thin profits that airlines are running, losing cargo revenues makes it just that much harder to post profits.

American Airlines Group Inc. (AAL) depends somewhat more on cargo revenues. Fourth quarter cargo revenue rose 13.9% to $196 million and full-year revenues rose 1.4% to $685 million. The company was created by the merger of AMR Corp. and US Airways. Due to the merger, the full-year results include only about three weeks of December and primarily reflect cargo revenues at the old AMR.

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Delta Air Lines Inc. (DAL) did not break out cargo revenues, but the number of cargo ton miles flown by the airline fell by 3.7% in the quarter and year-over-year. Delta estimates that its cargo operations will generate $1 billion in revenue in 2014, about half what its baggage fees and other service charges generate.

In its fiscal-second quarter, which ended in November, FedEx Corp. (FDX) reported a slight revenue decline due to lower express freight revenue. The company was able to show a profit primarily because it raised its package shipping rates.,

United Parcel Service Inc. (UPS) said fourth quarter revenue per package declined by 1.3%. The company also said revenues in its supply chain and freight segment fell 5.8% to $2.3 billion due primarily to reduced tonnage and lower revenue per kilogram in the company’s international air freight group.

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The issue is essentially one of speed vs. cost. Here’s how IATA’s Tyler puts it:

Customers still need speed, quality, reliability and efficiency. And we need to get better at delivering it through improved technology and modern processes. This will be a year of change for air cargo.

The total air cargo market grew by just 1.4% in 2013. The industry needs to do better this year.

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IATA says cargo is biggest worry for airlines

By Anshuman Daga

SINGAPORE (Reuters) – Weakness in air cargo markets remains the biggest worry for airlines despite some evidence of recovery in 2013, the head of the International Air Transport Association said.

“The biggest worry for the airlines industry right now is probably cargo. Air cargo continues to be weak and for the big airlines in this region (Asia), it is a very important component of their revenue,” IATA director general Tony Tyler told a news conference on Sunday ahead of the Singapore Airshow.

Air cargo is seen as a barometer for the economy. IATA estimates some 35 percent of world trade by value goes by air.

Led by gains in the Middle East, air freight traffic grew 1.8 percent globally in December compared with the same month of 2013, but it fell 1.1 percent in Asia, according to IATA.

“Latest numbers in cargo show that although globally cargo improved a bit, it didn’t really improve in this region (Asia). It’s usually been very strong in this region,” Tyler said.

Asia-Pacific carriers have nearly 40 percent of the global air freight market.

Last week, Singapore Airlines (SES:C6L) said air cargo demand is expected to be relatively flat, but cargo yields are likely to remain under pressure as the cargo business still faces overcapacity. Cathay Pacific has also been hit by weakness in cargo markets.

Asia’s largest aerospace event is being held amid strong demand for passenger jets, which automatically creates extra capacity for freight in the spacious cargo holds of big jets.

That in turn has put pressure on the market for dedicated freighters such as Boeing’s recently introduced 747-8.

Delegates at the show will be closely watching for any signs that currency weakness in key aviation markets such as Indonesia and Thailand will threaten economic growth, which could affect confidence and undermine passenger travel demand.

Despite these short-term worries, prospects for passenger growth remain bullish in Asia, said Brian Pearce, IATA’s chief economist.

“You’ve got some economies growing very fast. You’ve got some very supportive demographics. You’ve got liberalisation taking place in the region,” Pearce told Reuters TV.

“I think all of those add up to a very good medium term outlook. Obviously in the short term with some of the foreign exchange turmoil, some of the risks facing those economies with large current account deficits there may be some hiccups.”

Southeast Asia, home to Malaysia’s AirAsia Bhd (KLS:AIRASIA) and Indonesia’s privately held Lion Air, is driving spectacular growth in orders for Boeing (NYS:BA) and Airbus (AIR.PA) aircraft. But concerns are rising about overcapacity in some markets.

“We’ve seen some pressure on utilisation and load factors because of those aircraft deliveries through the last 12 months. I think we are starting to move into an improving position,” Pearce said.

In December, IATA raised its 2013 and 2014 forecasts for global airline profits due to lower jet fuel costs and improved efficiency.

(Additional reporting by Gautam Srinivasan, Editing by Tim Hepher)

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