All Nippon and Lufthansa Cargo successfully launch air cargo joint venture
All Nippon Airways, Japan’s largest airline, and Lufthansa Cargo AG, one of the world´s leading air cargo carriers, have launched an innovative air cargo joint venture on Japan-Europe routes. Since 1 December, both airlines have commenced joint sales of shipments on flights from Japan to Europe.
On 2 December the first shipment sent by forwarder Schenker-Seino and booked via Lufthansa Cargo was transported by ANA on flight number NH 277 from Tokyo to London. It consisted of three pieces of general cargo and weighed 153 kilograms. Due to the direct flight of ANA between the two cities, the customer was now able to take receipt of his shipment approximately 16 hours earlier than by choosing the transfer connection via Frankfurt.
On the same day the Lufthansa Cargo freighter flight LH 8385 carried the first shipment booked through ANA. The load weighed 1.8 tonnes. By accessing cargo capacities on freighter aircraft, it is now possible for ANA customers to send big volume freight and cargo that may only be transported on freighters, directly from Tokyo to Frankfurt.
The joint venture benefits customers by providing a larger and faster network with more direct flights, more destinations and more frequencies. By moving under one roof at major stations, such as the airports Narita and Nagoya in Japan and Dusseldorf and Frankfurt in Germany, customers can enjoy the services of both airlines at a single location.
Akira Okada, ANA Cargo CEO, said: “I am delighted that we have implemented the world’s first cargo joint venture of this kind. This partnership will improve the level of service offered to customers by generating a greater selection of routings and a wider range of service options.
Customers will derive further advantages from enhanced quality and improved flexibility. Time-saving will be an additional benefit, with customers having only one location for export drop-off and import delivery. “With the joint venture, both airlines will boost their position in global competition and make even better use of their aircraft capacities”, underlines Okada.
Peter Gerber, Lufthansa Cargo Chairman and CEO, said: “This cooperation marks a great step for our customers. They will benefit from a more attractive network. We are looking forward to intensifying our cooperation with ANA, which sets a further milestone in bringing the economies of Japan and Europe closer together.”
ANA received antitrust immunity, i. e. approval for the joint venture from the Japanese Ministry of Land Infrastructure and Transport, beginning of September 2014 after filing for it in spring. In addition, the joint venture was positively assessed by external counsel for compliance with relevant EU antitrust regulations.
All Nippon Airways (ANA) is the eighth largest airline in the world by revenues (2013) and the largest in Japan by passenger numbers and cargo tonnage (2013).
Lufthansa Cargo ranks among the world’s leading cargo carriers. In the 2013 business year, the airline transported around 1.7 million tonnes of freight and mail and sold 8.7 billion revenue tonne-kilometres. The Company currently employs about 4600 people, worldwide. Lufthansa Cargo focuses on the airport-to-airport business.
EU and US agree end to Airbus-Boeing supply chain tariffs
The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic.
Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years.
It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC.
The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn.
In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products.
Boeing-Airbus dispute by the numbers
- The dispute began in 2004
- Tariffs suspended for 5 years
- $11.5bn worth of goods affected by tariffs
- $3.3bn in duties paid by businesses to date
- 15% levy on aircraft and 25% on non-aircraft goods suspended
Both sides welcome end to tariffs
European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.
“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.
Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”.
The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."
This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.
Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”