Sat, Nov 16, 2013 - Page 13 News List

Eva Airways to cut fleet as Apple spurs product shift

Bloomberg

EVA Airways Corp (EVA, 長榮航空), the nation’s second-biggest carrier, will reduce its freighter fleet by more than a third as electronic products become smaller because of the popularity of handheld devices, president Austin Cheng (鄭傳義) said.

The carrier plans to cut the number of cargo planes it operates to fewer than 10 from the current 15 by 2017, Cheng said in an interview in Hong Kong.

It plans to cut all six of its MD-11 planes, he said.

EVA’s comments echo the woes of Taiwanese computer makers, as consumers abandon desktops for smartphones from Apple Inc and Samsung Electronics Inc.

Hong Kong’s Cathay Pacific Airways Ltd (國泰航空) said on Thursday peak cargo demand kicked in later than usual this season and was not as strong as expected.

CONSUMPTION PATTERN

“Apple not only changed consumption patterns, but also changed air cargo transportation,” Cheng said. “Electronic products are becoming smaller, while we charge by weight. The whole pattern for cargo transportation has changed.”

Six of the world’s 10 biggest freight airlines are in Asia, and slowing traffic has led to rate competition. Cargo demand for carriers in the region fell 3.1 percent in September, continuing a monthly decline since February, according to the International Air Transportation Association.

Weekly cargo revenue is 25 percent lower than it was three years ago, Cathay Pacific chief executive officer John Slosar said in the company’s in-house magazine.

FIERCE COMPETITION

“The cargo volume for the peak season is there, but the rate is still low as competition is quite fierce,” Cathay Pacific chief operating officer Ivan Chu (朱國梁) said on Friday.

To cope with the changes in cargo shipments, Asian carriers are buying more fuel-efficient planes and focusing on passenger demand.

EVA plans to boost the number of passenger planes it operates to 70 in five years, from 61 now, Cheng said. The passenger business has been a “bright spot” this year for Cathay Pacific, Chu said.

“We are relatively conservative toward air cargo freight,” Cheng said. “I think this will be a trend for everybody because it’s very difficult to find enough cargo to fill a freighter.”

This story has been viewed 1453 times.
TOP top