Air India pilot strike hurting air freight industry
The Air India pilot strike is now in its ninth day, and it’s looking more and more as if the pilots are going to get their way.
Air India pilots are demanding higher wages and a probe into what they call the company’s “near-destruction” by corrupt and incompetent officials. On Wednesday, the ministry of civil aviation stepped in and held productive talks with the Air India pilots.
Part of the intrigue here is that Air India is a state-owned airline, and while privatizing the airline could solve some of the issues at hand, there remains a polarizing debate over the privatization of a struggling state-owned business.
The nation might not have a choice, however, as all the power seems to be held by the Air India pilots. The pilot strike is crippling one of the larger economies in the world at a critical time, with the global supply chain still trying to pick up the pieces following the Japan disaster.
SEE OTHER TOP STORIES IN THE WDM NETWORK
More than 90 percent of Air India’s domestic flights have been cancelled, with tens of thousands of passengers affected. The Air India pilot strike is hurting more than just the passengers, as the pilot strike is affecting the air freight industry with cargo flights being canceled.
The pilot strike has hit the Indian air freight industry hard, as about 30 percent of its revenue on passenger flights comes directly from the freight the planes carry in the holds.
UPS Posts Record Second Quarter with Revenues of $23.4bn
Growth across each of its core segments resulted in record results for UPS in the second quarter, with group revenues climbing 14.5% year on year to $23.4bn.
The global logistics outfit achieved consolidated operating profit of $3.3bn, up 47.3% compared to the same period in 2020. It is the second consecutive quarter of record profit, and a significant rise on Q1’s $2.9bn.
UPS Q2 Revenues in Brief
- Consolidated revenues: $23.4bn (+14.5% yoy)
- Domestic: $14.4bn (+10.2%)
- International: $4.82bn (+30%)
- Supply Chain Solutions: $4.2bn (+14.3%)
The US company’s domestic segment performed steadily with 10.2% revenue growth to $14.4bn. But it was its international and supply chain solutions segments where UPS saw the biggest gains. Strong demand in Europe led an increase in international revenues of 30% to $4.82bn. UPS’ supply chain solutions division saw revenue growth of 14.3% to $4.2bn, driven, the company said, “by strong demand in nearly all businesses”.
UPS’ steady growth throughout the pandemic has been led by the overarching vision of its chief executive Carol Tomé to do “better not bigger”, focussing on efficiency and high margin deliveries through its network over pure scale and volume.
“I want to thank all UPSers for executing our strategy and delivering high service levels, which fuelled record financial results in the second quarter,” she said. “Through our better not bigger framework, we are moving our world forward by delivering what matters.”
UPS Completes Sales of UPS Freight
The second quarter also saw UPS complete the divestiture of UPS Freight in a deal worth $800m - with a surprise result for the division, now called TForce Freight, under new owner TFI International.
“The second quarter was historically significant for TFI International, with the closing of our UPS Freight acquisition and record performance across the board,” said Alain Bédard, chairman, President and Chief Executive Officer, TFI International. “Particularly gratifying is the performance of TForce Freight, which has exceeded our operating ratio targets far ahead of schedule, and we have only just begun our work.”
In it first two months of ownership TFI reported that adjusted operating ratio (OR) was 90.1% for TForce Freight, far outperforming its forecasted OR of 96-97%.
“I wish to thank our entire team for their hard work and remarkable efforts, and officially welcome aboard our new TForce Freight colleagues who have seamlessly come under the TFI umbrella and are already making stronger than expected contributions,” Bédard added.