"D/FW adding freight flights"

Saturday, October 9, 2004

D/FW adding freight flights 
Airport hopes to expand shipping business to Europe 
By SUZANNE MARTA
The Dallas (TX) Morning News


Focused in recent years on Asia, officials at Dallas/Fort Worth
International Airport are now setting their sights on expanding cargo
business with Europe. 

D/FW will add cargo flights to Amsterdam starting Monday, boosting the
region's capacity to trade in goods from communications equipment to fresh
flowers. 

The new destination offers an important connecting hub for flights headed
throughout Europe and the Middle East. 

The launch of service by Dutch freighter Martinair marks the latest
expansion to D/FW's international cargo business, which has grown nearly
four-fold over the last decade. 

Cargo growth at D/FW continues to outpace the industry, and airport
officials say they're bullish that the trend will continue. 

As shippers seek to meet business' just-in-time inventory demands, they are
turning to interior U.S. gateways such as North Texas. 

Now Asia accounts for almost half of D/FW's cargo business. The airport's
service to Asian markets has grown to 32 freighters a week. 

Eva Airways Corp. of Taipei is expected to add two direct flights between
D/FW and Taiwan by November, bringing its schedule up to eight trips each
week. 

Although not as fast-growing as many Asian markets, Europe plays a
significant trade role for shippers in the south central United States. 

Cargo shipments between the region and Europe are expected to grow between 3
percent and 4.2 percent annually between 2005 and 2008, according to
MergeGlobal Inc. of Arlington, Va. 

European cargo 

Europe represents about 36 percent of D/FW's cargo business, although much
of the trans-Atlantic service relies on passenger flights, which carry cargo
in the belly of the plane. 

"Europe hasn't gotten the attention it deserves," said Bill Frainey, an
assistant vice president in the airport's marketing and revenue management
department. 

There have only been five weekly cargo flights between D/FW and Europe,
serving Brussels and Frankfurt. 

And the two flights that stopped in Brussels - operated by Singapore
Airlines - operated an eastbound schedule only. 

Martinair's flights from Amsterdam include stops in Toronto and Chicago,
which will share the service with D/FW. 

"This gives us a whole new distribution point into Europe," Mr. Frainey
said. 

Being able to offer "main deck" cargo space to key global centers is
critical as D/FW positions itself as international gateway and distribution
point for goods shipped to and from the United States. 

The airport is the 11th busiest in the nation for cargo shipments, but third
busiest when it comes to takeoffs and landings. 

Less time 

Traditionally, international cargo was sent out of major trade cities such
as Los Angeles, Chicago and New York. But to reduce shipping time and costs,
many companies have shifted cargo to cities with more central locations. 

That has been especially important as both rail and trucking companies
grapple with capacity constraints driven by labor shortages and high fuel
costs. 

"Everyone wants to move their products quicker," Mr. Frainey said. "People
don't want their shipment stuck in L.A. for three days waiting for a truck."


And by starting service to a third European city, D/FW hopes to attract new
customers. 

"We can give them a new link to an untapped market so they don't have to
truck everything to or from some place like Chicago," Mr. Frainey said. 

D/FW's market is much larger than North Texas. The "catchment" area - or
potential customer market- is a 12-hour truck-drive radius from the airport.


Globally, cargo business has grown an average of 6 percent a year, about
half the pace D/FW has experienced lately. 

The industry spent the last three years climbing back to where it was before
the economic downturn of 2001, but has seen stronger than usual growth
during 2004. 

For the first six months of the year, international traffic grew by 10
percent, said Robert Dahl, project director for the Seattle-based aviation
consulting firm Air Cargo Management Group.


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